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Senate raises H-1B fees to fund border security PDF Print E-mail
Friday, 06 August 2010 17:06

$2,000 H-1B fee increase hits any firm with 50% of employees on the visa

Computerworld - WASHINGTON -- The U.S. Senate approved a large H-1B fee increase Thursday to help offset a $600 million "emergency package" to improve security along the Mexican border. The fee increases, which also affect the L-1 visa, will help pay for 1,000 new border patrol agents and drones or unmanned aircraft, as well as long list of agencies, including prisons

The Senate measure increases the H-1B visa application fees by $2,000 per application on those firms that have 50% of their employees on this visa. The fee increase will have the biggest impact on the large Indian offshore firms, such as Infosys Technologies Ltd., Wipro Ltd., and Tata Consultancy Services, which use thousands of H-1B visas to service U.S. customers.

Firms such as Microsoft and Google also hire many H-1B visas holders, but they are relatively a smaller fraction of their U.S. workforces. The legislation, introduced by U.S. Sens. Charles Schumer (D-N.Y.), Claire McCaskill (D-Mo.), and some other Democrats, passed by unanimous consent.

The House also passed a border security funding measure, one that calls for $701 million in spending, but it did not include an H-1B visa fee increase. Both chambers must now reconcile the two versions. While the Senate's fee increase will also apply to the L-1 visa, it is uncertain whether it would only apply to those firms that are also H-1B dependent. The text of the legislation has not been released.

Another group of H-1B users that may be affected by this increase are smaller outsourcing companies that dot office parks around the U.S. They include companies such as Logic Planet Inc., a New Jersey company that employs 95 software engineers, developers, and analysts, 89 of whom (93%) hold H-1B visas. Logic Planet disclosed its headcount in court documents as one of the firms, along with the TechServe Alliance, an IT services industry group, which is challenging the U.S. Citizenship and Immigration Services over its interpretation of H-1B rules.

Read more at http://www.computerworld.com/s/article/9180240/Senate_raises_H_1B_fees_to_fund_border_security

Source: www.computerworld.com (August 6, 2010)

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