II
110th CONGRESS
1st Session
S. 1035
IN THE SENATE OF THE UNITED STATES
March 29, 2007
Mr. Durbin (for himself and Mr. Grassley) introduced the following bill; which was read twice and referred to the Committee on the Judiciary
A BILL
To amend the Immigration and Nationality Act to reduce fraud and abuse in certain visa programs for aliens working temporarily in the United States.
Short title; table of contents
Short title
This Act may be cited as the
H–1B and L–1 Visa Fraud and Abuse
Prevention Act of 2007
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. H–1B employer requirements.
Sec. 3. H–1B government authority and requirements.
Sec. 4. L–1 visa fraud and abuse protections.
Sec. 5. Whistleblower protections.
Sec. 6. Additional Department of Labor employees.
H–1B employer requirements
Application of nondisplacement and good faith recruitment requirements to all H–1B employers
Amendments
Section 212(n) of the Immigration and Nationality Act (8 U.S.C. 1182(n)) is amended—
in paragraph (1)—
in subparagraph (E);
in clause (i), by striking (E)(i) In
the case of an application described in clause (ii), the
and inserting
(E) The
; and
by striking clause (ii);
in subparagraph (F), by striking In
the case of
and all that follows through where—
and
inserting the following: The employer will not place the nonimmigrant
with another employer if—
; and
in subparagraph (G), by striking In
the case of an application described in subparagraph (E)(ii), subject
and inserting Subject
;
in paragraph (2)—
in subparagraph (E), by striking If
an H–1B-dependent employer
and inserting If an employer that
employs H–1B nonimmigrants
; and
in subparagraph (F), by striking The
preceding sentence shall apply to an employer regardless of whether or not the
employer is an H–1B-dependent employer.
; and
by striking paragraph (3).
Effective date
The amendments made by paragraph (1) shall apply to applications filed on or after the date of the enactment of this Act.
Nondisplacement requirement
Extending time period for nondisplacement
Section 212(n) of such Act, as amended by subsection (a), is further amended—
in paragraph (1)—
in subparagraph (E), by striking 90
days
each place it appears and inserting 180
days
;
in subparagraph (F)(ii), by striking
90 days
each place it appears and inserting 180
days
; and
in paragraph (2)(C)(iii), by striking
90 days
each place it appears and inserting 180
days
.
Effective date
The amendments made by paragraph (1)—
shall apply to applications filed on or after the date of the enactment of this Act; and
shall not apply to displacements for periods occurring more than 90 days before such date.
Public listing of available positions
Listing of available positions
Section 212(n)(1)(C) of such Act is amended—
in clause (i), by striking (i) has
provided
and inserting the following:
has provided
;
by redesignating clause (ii) as subclause (II); and
by inserting before clause (ii), as redesignated, the following:
has advertised the job availability on the list described in paragraph (6), for at least 30 calendar days; and
.
List maintained by the department of labor
Section 212(n) of such Act, as amended by this section, is further amended by adding at the end the following:
Not later than 90 days after the date of the enactment of this paragraph, the Secretary of Labor shall establish a list of available jobs, which shall be publicly accessible without charge—
on a website maintained by the Department of Labor, which website shall be searchable by—
the name, city, State, and zip code of the employer;
the date on which the job is expected to begin;
the title and description of the job; and
the State and city (or county) at which the work will be performed; and
at each 1-stop center created under the Workforce Investment Act of 1998 (Public Law 105–220).
Each available job advertised on the list shall include—
the employer’s full legal name;
the address of the employer’s principal place of business;
the employer’s city, State and zip code;
the employer’s Federal Employer Identification Number;
the phone number, including area code and extension, as appropriate, of the hiring official or other designated official of the employer;
the e-mail address, if available, of the hiring official or other designated official of the employer;
the wage rate to be paid for the position and, if the wage rate in the offer is expressed as a range, the bottom of the wage range;
whether the rate of pay is expressed on an annual, monthly, biweekly, weekly, or hourly basis;
a statement of the expected hours per week that the job will require;
the date on which the job is expected to begin;
the date on which the job is expected to end, if applicable;
the number of persons expected to be employed for the job;
the job title;
the job description;
the city and State of the physical location at which the work will be performed; and
a description of a process by which a United States worker may submit an application to be considered for the job.
The Secretary of Labor may charge a nominal filing fee to employers who advertise available jobs on the list established under this paragraph to cover expenses for establishing and administering the requirements under this paragraph.
The Secretary may promulgate rules, after notice and a period for comment—
to carry out the requirements of this paragraph; and
that require employers to provide other information in order to advertise available jobs on the list.
.
Effective date
Paragraph (1) shall take effect for applications filed at least 30 days after the creation of the list described in paragraph (2).
H–1B nonimmigrants not admitted for jobs advertised or offered only to H–1B nonimmigrants
Section 212(n)(1) of such Act, as amended by this section, is further amended—
by inserting after subparagraph (G) the following:
The employer has not advertised the available jobs specified in the application in an advertisement that states or indicates that—
the job or jobs are only available to persons who are or who may become H–1B nonimmigrants; or
persons who are or who may become H–1B nonimmigrants shall receive priority or a preference in the hiring process.
The employer has not only recruited persons who are, or who may become, H–1B nonimmigrants to fill the job or jobs.
; and
in the undesignated paragraph at the end,
by striking The employer
and inserting the following:
The employer
.
Prohibition of outplacement
In general
Section 212(n) of such Act, as amended by this section, is further amended—
in paragraph (1), by amending subparagraph (F) to read as follows:
The employer shall not place, outsource, lease, or otherwise contract for the placement of an alien admitted or provided status as an H–1B nonimmigrant with another employer;
and
in paragraph (2), by striking subparagraph (E).
Effective date
The amendments made by paragraph (1) shall apply to applications filed on or after the date of the enactment of this Act.
Limit on percentage of H–1B employees
Section 212(n)(1) of such Act, as amended by this section, is further amended by inserting after subparagraph (H), as added by subsection (d)(1), the following:
If the employer employs not less than 50 employees in the United States, not more than 50 percent of such employees are H–1B nonimmigrants.
.
Wage determination
Change in minimum wages
Section 212(n)(1) of such Act, as amended by this section, is further amended—
by amending subparagraph (A) to read as follows:
The employer—
is offering and will offer, during the period of authorized employment, to aliens admitted or provided status as an H–1B nonimmigrant, wages, based on the best information available at the time the application is filed, which are not less than the highest of—
the locally determined prevailing wage level for the occupational classification in the area of employment;
the median average wage for all workers in the occupational classification in the area of employment; or
the median wage for skill level 2 in the occupational classification found in the most recent Occupational Employment Statistics survey; and
will provide working conditions for such a nonimmigrant that will not adversely affect the working conditions of workers similarly employed.
; and
in subparagraph (D), by inserting
the wage determination methodology used under subparagraph
(A)(i),
after shall contain
.
Provision of W–2 forms
Section 212(n)(1) of such Act is amended by inserting after subparagraph (I), as added by subsection (f), the following:
If the employer, in such previous period as the Secretary shall specify, employed 1 or more H–1B nonimmigrants, the employer shall submit to the Secretary the Internal Revenue Service Form W–2 Wage and Tax Statement filed by the employer with respect to such nonimmigrants for such period.
.
Effective date
The amendments made by this subsection shall apply to applications filed on or after the date of the enactment of this Act.
Immigration documents
Section 204 of such Act (8 U.S.C. 1154) is amended by adding at the end the following:
Employer To share all immigration paperwork exchanged with Federal agencies
Not later than 10 working days after receiving a written request from a former, current, or future employee or beneficiary, an employer shall provide the employee or beneficiary with the original (or a certified copy of the original) of all petitions, notices, and other written communication exchanged between the employer and the Department of Labor, the Department of Homeland Security, or any other Federal agency that is related to an immigrant or nonimmigrant petition filed by the employer for the employee or beneficiary.
.
H–1B government authority and requirements
Safeguards against fraud and misrepresentation in application review process
Section 212(n)(1)(K) of the Immigration and Nationality Act, as redesignated by section 2(d)(2), is amended—
by inserting and through the
Department of Labor’s website, without charge.
after
D.C.
;
by inserting , clear indicators of
fraud, misrepresentation of material fact,
after
completeness
;
by striking or obviously
inaccurate
and inserting , presents clear indicators of fraud or
misrepresentation of material fact, or is obviously inaccurate
;
by striking within 7 days of
and inserting not later than 14 days after
; and
by adding at the end the following: “If the Secretary’s review of an application identifies clear indicators of fraud or misrepresentation of material fact, the Secretary may conduct an investigation and hearing under paragraph (2).
Investigations by department of labor
Section 212(n)(2) of such Act is amended—
in subparagraph (A)—
by striking 12 months
and
inserting 24 months
; and
by striking The Secretary shall
conduct
and all that follows and inserting Upon the receipt of
such a complaint, the Secretary may initiate an investigation to determine if
such a failure or misrepresentation has occurred.
;
in subparagraph (C)(i)—
by striking a condition of paragraph
(1)(B), (1)(E), or (1)(F)
and inserting a condition under
subparagraph (B), (C)(i), (E), (F), (H), (I), or (J) of paragraph (1)
;
and
by striking (1)(C)
and
inserting (1)(C)(ii)
;
in subparagraph (G)—
in clause (i), by striking if the
Secretary
and all that follows and inserting with regard to the
employer’s compliance with the requirements of this subsection.
;
in clause (ii), by striking and
whose identity
and all that follows through failure or
failures.
and inserting the Secretary of Labor may conduct an
investigation into the employer’s compliance with the requirements of this
subsection.
;
in clause (iii), by striking the last sentence;
by striking clauses (iv) and (v);
by redesignating clauses (vi), (vii), and (viii) as clauses (iv), (v), and (vi), respectively;
in clause (iv), as redesignated, by
striking meet a condition described in clause (ii), unless the Secretary
of Labor receives the information not later than 12 months
and
inserting comply with the requirements under this subsection, unless the
Secretary of Labor receives the information not later than 24
months
;
by amending clause (v), as redesignated, to read as follows:
The Secretary of Labor shall provide notice to an employer of the intent to conduct an investigation. The notice shall be provided in such a manner, and shall contain sufficient detail, to permit the employer to respond to the allegations before an investigation is commenced. The Secretary is not required to comply with this clause if the Secretary determines that such compliance would interfere with an effort by the Secretary to investigate or secure compliance by the employer with the requirements of this subsection. A determination by the Secretary under this clause shall not be subject to judicial review.
.
in clause (vi), as redesignated, by
striking An investigation
and all that follows through
the determination.
and inserting If the Secretary of
Labor, after an investigation under clause (i) or (ii), determines that a
reasonable basis exists to make a finding that the employer has failed to
comply with the requirements under this subsection, the Secretary shall provide
interested parties with notice of such determination and an opportunity for a
hearing in accordance with section 556 of title 5, United States Code, not
later than 120 days after the date of such determination.
; and
by adding at the end the following:
If the Secretary of Labor, after a hearing, finds a reasonable basis to believe that the employer has violated the requirements under this subsection, the Secretary may impose a penalty under subparagraph (C).
; and
by striking subparagraph (H).
Information sharing between department of labor and department of homeland security
Section 212(n)(2) of such Act, as amended by this section, is further amended by inserting after subparagraph (G) the following:
The Director of United States Citizenship and Immigration Services shall provide the Secretary of Labor with any information contained in the materials submitted by H–1B employers as part of the adjudication process that indicates that the employer is not complying with H–1B visa program requirements. The Secretary may initiate and conduct an investigation and hearing under this paragraph after receiving information of noncompliance under this subparagraph.
.
Audits
Section 212(n)(2)(A) of such Act, as
amended by this section, is further amended by adding at the end the following:
The Secretary may conduct surveys of the degree to which employers
comply with the requirements under this subsection and may conduct annual
compliance audits of employers that employ H–1B nonimmigrants. The Secretary
shall conduct annual compliance audits of not less than 1 percent of the
employers that employ H–1B nonimmigrants during the applicable calendar year.
The Secretary shall conduct annual compliance audits of each employer with more
than 100 employees who work in the United States if more than 15 percent of
such employees are H–1B nonimmigrants.
.
Penalties
Section 212(n)(2)(C) of such Act, as amended by this section, is further amended—
in clause (i)(I), by striking
$1,000
and inserting $2,000
;
in clause (ii)(I), by striking
$5,000
and inserting $10,000
; and
in clause (vi)(III), by striking
$1,000
and inserting $2,000
.
Information provided to H–1B nonimmigrants upon visa issuance
Section 212(n) of such Act, as amended by this section, is further amended by inserting after paragraph (2) the following:
Upon issuing an H–1B visa to an applicant outside the United States, the issuing office shall provide the applicant with—
a brochure outlining the employer’s obligations and the employee’s rights under Federal law, including labor and wage protections;
the contact information for Federal agencies that can offer more information or assistance in clarifying employer obligations and workers’ rights; and
a copy of the employer’s H–1B application for the position that the H–1B nonimmigrant has been issued the visa to fill.
Upon the issuance of an H–1B visa to an alien inside the United States, the officer of the Department of Homeland Security shall provide the applicant with—
a brochure outlining the employer’s obligations and the employee’s rights under Federal law, including labor and wage protections;
the contact information for Federal agencies that can offer more information or assistance in clarifying employer's obligations and workers' rights; and
a copy of the employer's H–1B application for the position that the H–1B nonimmigrant has been issued the visa to fill.
.
L–1 visa fraud and abuse protections
In general
Section 214(c)(2) of the Immigration and Nationality Act (8 U.S.C. 1184(c)(2)) is amended—
by striking Attorney General
each place it appears and inserting Secretary of Homeland
Security
;
in subparagraph (E), by striking In
the case of an alien spouse admitted under section 101(a)(15)(L), who
and inserting Except as provided in subparagraph (H), if an alien spouse
admitted under section 101(a)(15)(L)
; and
by adding at the end the following:
If the beneficiary of a petition under this subsection is coming to the United States to open, or be employed in, a new facility, the petition may be approved for up to 12 months only if the employer operating the new facility has—
a business plan;
sufficient physical premises to carry out the proposed business activities; and
the financial ability to commence doing business immediately upon the approval of the petition.
An extension of the approval period under clause (i) may not be granted until the importing employer submits an application to the Secretary of Homeland Security that contains—
evidence that the importing employer meets the requirements of this subsection;
evidence that the beneficiary meets the requirements under section 101(a)(15)(L);
a statement summarizing the original petition;
evidence that the importing employer has fully complied with the business plan submitted under clause (i)(I);
evidence of the truthfulness of any representations made in connection with the filing of the original petition;
evidence that the importing employer, during the preceding 12 months, has been doing business at the new facility through regular, systematic, and continuous provision of goods or services, or has otherwise been taking commercially reasonable steps to establish the new facility as a commercial enterprise;
a statement of the duties the beneficiary has performed at the new facility during the preceding 12 months and the duties the beneficiary will perform at the new facility during the extension period approved under this clause;
a statement describing the staffing at the new facility, including the number of employees and the types of positions held by such employees;
evidence of wages paid to employees;
evidence of the financial status of the new facility; and
any other evidence or data prescribed by the Secretary.
Notwithstanding subclauses (I) through (VI) of clause (ii), and subject to the maximum period of authorized admission set forth in subparagraph (D), the Secretary of Homeland Security may approve a petition subsequently filed on behalf of the beneficiary to continue employment at the facility described in this subsection for a period beyond the initially granted 12-month period if the importing employer demonstrates that the failure to satisfy any of the requirements described in those subclauses was directly caused by extraordinary circumstances beyond the control of the importing employer.
For purposes of determining the eligibility of an alien for classification under section 101(a)(15)(L), the Secretary of Homeland Security shall work cooperatively with the Secretary of State to verify a company or facility's existence in the United States and abroad.
.
Restriction on blanket petitions
Section 214(c)(2)(A) of such Act is amended to read as follows:
The Secretary of Homeland Security may not permit the use of blanket petitions to import aliens as nonimmigrants under section 101(a)(15)(L).
.
Prohibition on outplacement
Section 214(c)(2) of such Act, as amended by this section, is further amended by adding at the end the following:
An employer who imports 1 or more aliens as nonimmigrants described in section 101(a)(15)(L) shall not place, outsource, lease, or otherwise contract for the placement of an alien admitted or provided status as an L–1 nonimmigrant with another employer.
.
Investigations and audits by department of Homeland Security
Department of homeland security investigations
Section 214(c)(2) of such Act, as amended by this section, is further amended by adding at the end the following:
The Secretary of Homeland Security may initiate an investigation of any employer that employs nonimmigrants described in section 101(a)(15)(L) with regard to the employer’s compliance with the requirements of this subsection.
If the Secretary of Homeland Security receives specific credible information from a source who is likely to have knowledge of an employer’s practices, employment conditions, or compliance with the requirements under this subsection, the Secretary may conduct an investigation into the employer’s compliance with the requirements of this subsection. The Secretary may withhold the identity of the source from the employer, and the source's identity shall not be subject to disclosure under section 552 of title 5.
The Secretary of Homeland Security shall establish a procedure for any person desiring to provide to the Secretary of Homeland Security information described in clause (ii) that may be used, in whole or in part, as the basis for the commencement of an investigation described in such clause, to provide the information in writing on a form developed and provided by the Secretary of Homeland Security and completed by or on behalf of the person.
No investigation described in clause (ii) (or hearing described in clause (vi) based on such investigation) may be conducted with respect to information about a failure to comply with the requirements under this subsection, unless the Secretary of Homeland Security receives the information not later than 24 months after the date of the alleged failure.
Before commencing an investigation of an employer under clause (i) or (ii), the Secretary of Homeland Security shall provide notice to the employer of the intent to conduct such investigation. The notice shall be provided in such a manner, and shall contain sufficient detail, to permit the employer to respond to the allegations before an investigation is commenced. The Secretary is not required to comply with this clause if the Secretary determines that to do so would interfere with an effort by the Secretary to investigate or secure compliance by the employer with the requirements of this subsection. There shall be no judicial review of a determination by the Secretary under this clause.
If the Secretary of Homeland Security, after an investigation under clause (i) or (ii), determines that a reasonable basis exists to make a finding that the employer has failed to comply with the requirements under this subsection, the Secretary shall provide interested parties with notice of such determination and an opportunity for a hearing in accordance with section 556 of title 5, United States Code, not later than 120 days after the date of such determination. If such a hearing is requested, the Secretary shall make a finding concerning the matter by not later than 120 days after the date of the hearing.
If the Secretary of Homeland Security, after a hearing, finds a reasonable basis to believe that the employer has violated the requirements under this subsection, the Secretary may impose a penalty under section 214(c)(2)(J).
.
Audits
Section 214(c)(2)(I) of such Act, as added by paragraph (1), is amended by adding at the end the following:
The Secretary of Homeland Security may conduct surveys of the degree to which employers comply with the requirements under this section and may conduct annual compliance audits of employers that employ H–1B nonimmigrants. The Secretary shall conduct annual compliance audits of not less than 1 percent of the employers that employ nonimmigrants described in section 101(a)(15)(L) during the applicable calendar year. The Secretary shall conduct annual compliance audits of each employer with more than 100 employees who work in the United States if more than 15 percent of such employees are nonimmigrants described in section 101(a)(15)(L).
.
Reporting requirement
Section 214(c)(8) of such Act is amended by
inserting (L),
after (H),
.
Penalties
Section 214(c)(2) of such Act, as amended by this section, is further amended by adding at the end the following:
If the Secretary of Homeland Security finds, after notice and an opportunity for a hearing, a failure by an employer to meet a condition under subparagraph (F), (G), (H), (I), or (K) or a misrepresentation of material fact in a petition to employ 1 or more aliens as nonimmigrants described in section 101(a)(15)(L)—
the Secretary of Homeland Security may impose such other administrative remedies (including civil monetary penalties in an amount not to exceed $2,000 per violation) as the Secretary determines to be appropriate; and
the Secretary of Homeland Security may not, during a period of at least 1 year, approve a petition for that employer to employ 1 or more aliens as such nonimmigrants.
If the Secretary of Homeland Security finds, after notice and an opportunity for a hearing, a willful failure by an employer to meet a condition under subparagraph (F), (G), (H), (I), or (K) or a misrepresentation of material fact in a petition to employ 1 or more aliens as nonimmigrants described in section 101(a)(15)(L)—
the Secretary of Homeland Security may impose such other administrative remedies (including civil monetary penalties in an amount not to exceed $10,000 per violation) as the Secretary determines to be appropriate; and
the Secretary of Homeland Security may not, during a period of at least 2 years, approve a petition filed for that employer to employ 1 or more aliens as such nonimmigrants.
If the Secretary of Homeland Security finds, after notice and an opportunity for a hearing, a willful failure by an employer to meet a condition under subparagraph (L)(i)—
the Secretary of Homeland Security may impose such other administrative remedies (including civil monetary penalties in an amount not to exceed $10,000 per violation) as the Secretary determines to be appropriate; and
the employer shall be liable to employees harmed for lost wages and benefits.
.
Wage determination
Change in minimum wages
Section 214(c)(2) of such Act, as amended by this section, is further amended by adding at the end the following:
An employer that employs a nonimmigrant described in section 101(a)(15)(L) shall—
offer such nonimmigrant, during the period of authorized employment, wages, based on the best information available at the time the application is filed, which are not less than the highest of—
the locally determined prevailing wage level for the occupational classification in the area of employment;
the median average wage for all workers in the occupational classification in the area of employment; or
the median wage for skill level 2 in the occupational classification found in the most recent Occupational Employment Statistics survey; and
provide working conditions for such nonimmigrant that will not adversely affect the working conditions of workers similarly employed.
If an employer, in such previous period specified by the Secretary of Homeland Security, employed 1 or more L–1 nonimmigrants, the employer shall provide to the Secretary of Homeland Security the Internal Revenue Service Form W–2 Wage and Tax Statement filed by the employer with respect to such nonimmigrants for such period.
It is a failure to meet a condition under this subparagraph for an employer, who has filed a petition to import 1 or more aliens as nonimmigrants described in section 101(a)(15)(L), to—
require such a nonimmigrant to pay a penalty for ceasing employment with the employer before a date mutually agreed to by the nonimmigrant and the employer; or
fail to offer to such a nonimmigrant, during the nonimmigrant’s period of authorized employment, on the same basis, and in accordance with the same criteria, as the employer offers to United States workers, benefits and eligibility for benefits, including—
the opportunity to participate in health, life, disability, and other insurance plans;
the opportunity to participate in retirement and savings plans; and
cash bonuses and noncash compensation, such as stock options (whether or not based on performance).
The Secretary of Homeland Security shall determine whether a required payment under clause (iii)(I) is a penalty (and not liquidated damages) pursuant to relevant State law.
.
Effective date
The amendments made by this subsection shall apply to applications filed on or after the date of the enactment of this Act.
Whistleblower protections
H–1B whistleblower protections
Section 212(n)(2)(C)(iv) of the Immigration and Nationality Act (8 U.S.C. 1182(n)(2)(C)(iv)) is amended—
by inserting take, fail to take, or
threaten to take or fail to take, a personnel action, or
before
to intimidate
; and
by adding at the end the following:
An employer that violates this clause shall be liable to the employees
harmed by such violation for lost wages and benefits.
.
L–1 whistleblower protections
Section 214(c)(2) of such Act, as amended by section 4, is further amended by adding at the end the following:
It is a violation of this subparagraph for an employer who has filed a petition to import 1 or more aliens as nonimmigrants described in section 101(a)(15)(L) to take, fail to take, or threaten to take or fail to take, a personnel action, or to intimidate, threaten, restrain, coerce, blacklist, discharge, or discriminate in any other manner against an employee because the employee—
has disclosed information that the employee reasonably believes evidences a violation of this subsection, or any rule or regulation pertaining to this subsection; or
cooperates or seeks to cooperate with the requirements of this subsection, or any rule or regulation pertaining to this subsection.
An employer that violates this subparagraph shall be liable to the employees harmed by such violation for lost wages and benefits.
In this subparagraph, the term employee includes—
a current employee;
a former employee; and
an applicant for employment.
.
Additional Department of Labor employees
In general
The Secretary of Labor is authorized to hire 200 additional employees to administer, oversee, investigate, and enforce programs involving H–1B nonimmigrant workers.
Authorization of appropriations
There are authorized to be appropriated such sums as may be necessary to carry out this section.