On October 21, 1998, Congress enacted the American Competitiveness and Workforce Improvement Act (ACWIA). This Act is a direct result of the increased need for high-tech employees to remedy labor shortages that are affecting American competitiveness in high-tech fields. This legislation temporarily increases for a three year period the annual cap on the number of highly skilled foreign workers allowed to work in the United States under the H-1B Visa program. It also requires employers to pay a fee of $500 to a training fund for each worker hired under this program. In addition, employers who hire workers under this program must pay these workers full-time wages for nonworking time that results from an employer's decision to reduce hours of work. The Immigration and Naturalization Service has proposed amendments to its regulations governing the H-1B program as a result of this new legislation. The following sections will briefly discuss these various provisions of the ACWIA and the proposed regulations to this statute.
Highlights of this Legislation
The ACWIA increases the annual H-1B visa limits for highly skilled workers from 65,000 up to (a) 115,000 in fiscal year 1999; (b) 115,000 in fiscal year 2000; and (c) 107,500 in fiscal year 2001. The annual limits for H-1B visas will return to 65,000 at the start of fiscal year 2002.
New Training Fee
The ACWIA also requires employers to pay a training fee of $500 for every worker they hire under this program. The training fee resulted from concerns that jobs that could have been going to U.S. workers were being given to foreign workers instead. The fee will be used to provide job training to U.S. workers; low-income scholarships to U.S. students; grants to U.S. schools for mathematics, engineering or computer science programs; and costs associated with the administration and enforcement of the H-1B program. There is an exemption from the fee requirement for churches, higher education institutions and non-profit or governmental research organizations.
Payment for Non-Work Time
Employers that hire a foreign worker for a full-time position under the H-1B program will now be required to pay that worker full-time wages for time not worked in the event that the employer decides there is not enough work. This provision is intended to curtail employers from hiring more foreign workers than are actually needed to perform the work.
If you are in the high-tech field, the ACWIA should provide you with greater flexibility to fill positions for which qualified candidates are hard to find. Keep in mind, however, that this is a temporary program, and plan for your future accordingly.