Press Release of Sen. Abraham.
Re: H-1B Visa Legislation.
Date: October 13, 1998.
Source: Office of Sen. Spencer Abraham. This document was created by scanning a fax copy, and converting it into HTML.

Abraham Announces High Tech Visa Increase Included in Omnibus Appropriations

Both Chambers Strongly Supported Measure, Senator Says

(WASHINGTON) U.S. Senator Spencer Abraham (R-Michigan), Chairman of the Senate Immigration Subcommittee, announced today that his legislation to temporarily increase the number of high tech visas was incorporated into the Omnibus Appropriations Bill. Despite White House support, the House passing it by a vote of 288-133, and a previous Senate vote of 78-20 on a similar measure, the H-1B visa bill was prevented from passing when Senator Tom Harkin (D-Iowa) objected to a unanimous consent request last Friday. The Omnibus bill could be passed as early as Wednesday.

'I commend the Republican Leadership and the budget negotiators for including this important legislation into the Omnibus bill. The American Competitiveness and Workforce Improvement Act had strong support in both chambers, as well as the White House, and certainly would have passed in the Senate on a roll call vote," Abraham said. "This is a big victory for the economy, which is being fueled in large part by our high tech industries. The legislation strikes the right balance in safeguarding America's competitive edge and protecting U.S. jobs," Abraham said.

"'This bill will increase the skills and employability of American workers while making certain that no qualified American worker is, replaced by any immigrant worker," Abraham said. It gives our high technology companies the tools they need to compete in world markets without sacrificing in any way the economic opportunities and well-being of American workers. Indeed, by keeping America competitive it will increase economic growth and the ability of all Americans to achieve and maintain economic security and prosperity," he said,

Abraham explained that the shortage of high tech workers is urgent. "Virtually every study conducted by serious researchers shows a very severe shortage in these high-tech worker job slots," Abraham said, "Virginia Tech University's recent study indicated over 340,000 vacancies in information technology positions existing today in America. The Clinton Administration's Department of Commerce's study revealed that it is anticipated in each of the next 10 years the U.S. economy will generate over 130,000 new information technology jobs, and yet the combined resources of our colleges, universities, and job training programs and high schools is only likely to fill a fraction of those every year This is a severe problem, and it is especially severe at this time."

The legislation will also help address the Year 2000 problem, Abraham explained. "The Federal Government, as well as virtually every U.S. business, is confronted with the final crisis stages of preparing our high-tech systems for this enormous Year 2K problem. The crisis is made only worse because of the inadequate supply of high tech workers needed to fix the problem," he said.

The Congressional - White House agreement increases the number of H-1B temporary worker visas from 65,000 now to 115,000 in 1999, 115,000 in 2000 and 107,500 in 2001. The visa limit will return to 65,000 in 2002. It will also provide college scholarships and job training for American workers. The Abraham Scholarships will be provided to low-income students in math, engineering and computer science through the National Science Foundation, with training provided through the jobs Partnership Act. This program will be funded by a $500 fee per visa petition and a $500 fee for visa renewals, which combines will raise an estimated $75 million each year.

Layoff protection for American workers is also ensured by the agreement. In particular, any company with 15% or more of its workforce in the United States on H-1B visas must attest that it will not lay off an American employee for the same job nor recruit less-qualified foreign workers. There are no attestation requirements for H-1B workers who have a Masters Degree or earn more than a $60,000 annual salary. There are also special exemptions from attestations for small businesses and start-up companies. All employers, whether H-1B dependent or not, will face severe penalties and disbarment from the program for violations of the law. The Department of Labor will have increased authority to investigate any evidence it obtains of a possible serious violation. A report will also be prepared on the high technology sector and future labor market trends, as well as on older workers in the information technology field.

The American Competitiveness and Workforce Improvement Act in Omnibus Appropriations Legislation

Increased Access to Skilled Personnel for U.S. Companies and Universities: H-1B  temporary visas will increase from the current cap of 65,000 annually as follows: 1999 115.000 visas-. 2000: 115,000 2001: 107,500; H-1B numbers go back to current law of 65,000 a year in 2002.

Training and Education for American Workers and Students: The bill provides 10,000 scholarships a year for low-income students in math, engineering, and computer science through the National Science Foundation, mentoring programs for young people and training for many thousands of Americans through the Jobs Partnership Act. These are funded by a $500 fee per visa petition, and a $500 fee for renewal of the visas, which should raise at least $75 million a year to fund the scholarships and training in the bill. The money is split 65% for training, 30% for the Abraham Scholarships, and 5% to be divided between administration and enforcement of H-1B visa program.

Layoff protection for American workers. The bill provides three types of layoff protection for American workers. 1) A company that is H-1B dependent (see below) must attest that it will, not layoff an American employee in the same job 910 days before or after the filing of a petition for an H-1B professional.  2) An H-1B dependent company acting as a contractor must attest that it similarly will not place an H-1B professional in an other company to fill the same job held by a laid off American 90 days before or after the date of placement.  3) If a U.S. employer commits, a willful violation and underpays an individual on an H-1B visa and replaces an American worker, that employer will be hit with a 3-year debarment from all employment immigration programs and be slapped with a $35,000 fine per violation. This 3rd provision applies to all employers, regardless of their level of H-1B usage.

Recruitment Requirements on Dependent Employers. H-1B I dependent companies must attest they recruit according to industry-wide standards. Moreover, they must attest that the H-1B was as, or more, qualified than any American job applicant. An American not hired can file a complaint with an arbitration panel, which can fine employers found to violate this provision.

H-1B Dependent Companies: An employer is defined as H-1B dependent in the legislation and subject to the new recruitment and layoff attestations if its workforce consists of 15 % or more H-1B visa holders. There is a provision to help smaller employers and start-ups by defining as non-dependent" an employer with 25 employees that has no more than 7 H-1Bs and an employer with 26 to 50 employees that has no more than 12 H-1Bs There are no attestation requirements for H-1B workers who have a Masters Degree or earn more than a $60,000 annual salary. Employers who are found to have committed willful violations in the prior 5 years will, be subject to these new attestations.

Increased Enforcement & Penalties. The bill increases by five-fold -- to $5,000 -- fines for willful violators and of the H-1B program, doubles the debarment period for such violation from one to two years. It gives the Department of Labor authority to initiate "spot" investigations, without a complaint filed, on those found to have committed for willful violations. DOL also will have. the authority to investigate suspected willful and serious violations of H-1B visas if it receives specific and credible evidence of such violations and receives the Secretary of Labor's approval.

Administration of H-1B Visas. The bill eliminates the financial incentive to hire under-compensated foreign temporary workers by permanently reforming the prevailing wage attestation. It requires employers to offer benefits and the opportunity to earn bonuses to H-1B employees who are similarly-employed to U.S- workers if such benefits or the opportunity to cam bonuses are available to the company's U.S. employees. The bill provides for sanctions for violations of new whistleblower protections and contains provisions against unconscionable contracts and against "benching." The division of labor between INS and DOL for processing the Labor Condition Applications (LCAs) will remain as in current law.