The Economic Stimulus Package Mandates Strict Regulations for Hiring H-1B Workers

visanow.com

On Feb. 17, 2009, President Obama signed the American Recovery and Reinvestment Act, paving the way for $787 billion to revive the tattered U.S. economy. Unfortunately, the measure as finally approved by Congress, included the Sanders H-1B amendment which burdens stimulus fund recipient companies with strict regulations for hiring foreign workers under the H-1B program.

In short, the Sanders H-1B provision restricts the hiring of H-1B guest workers at bailed-out banks or any other firms that receive funds from the stimulus bill or from other emergency loans made by the Federal Reserve. The provision, known in the text of the bill as the “Employ American Workers Act”, would require companies receiving stimulus funds to comply with hiring rules set for "H-1B dependent" firms -- those with more than 15 percent of their workers on H-1B visas. Any company receiving stimulus funds will be automatically considered H-1B dependent, regardless of the percentage of H-1B workers on the payroll.

As a result, these companies will be required to hire only American workers for two years unless the company can prove they are not replacing laid-off Americans with guest workers. Many groups have expressed disappointment, arguing that the provision’s difficult requirements will prevent affected U.S. companies from hiring the best available global talent. The text of the provision is as follows:

SEC. 1611. HIRING AMERICAN WORKERS IN COMPANIES RECEIVING TARP FUNDING. (a) SHORT TITLE.—This section may be cited as the ‘‘Employ American Workers Act’’. (b) PROHIBITION.— (1) IN GENERAL.—Notwithstanding any other provision of law, it shall be unlawful for any recipient of funding under title I of the Emergency Economic Stabilization Act of 2008 (Public Law 110–343) or section 13 of the Federal Reserve Act (12 U.S.C. 342 et seq.) to hire any nonimmigrant described in section 101(a)(15)(h)(i)(b) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(h)(i)(b)) unless the recipient is in compliance with the requirements for an H–1B dependent employer (as defined in section 212(n)(3) of such Act (8 U.S.C. 1182(n)(3))), except that the second sentence of section 212(n)(1)(E)(ii) of such Act shall not apply. (2) DEFINED TERM.—In this subsection, the term ‘‘hire’’ means to permit a new employee to commence a period of employment. (c) SUNSET PROVISION.—This section shall be effective during the 2-year period beginning on the date of the enactment of this Act.