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Most Recent INS Approval Figures; 1999 H-1B Cap is Being Rapidly Reached

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The Immigration and Naturalization Service ("INS") announced today that 80,983 new H-1B petitions have been approved as of February 28 of this year. As indicated in our most recent Cooley Alert on this issue, the INS may approve no more than 115,000 new H-1B petitions during each of its fiscal years (dating from October 1 to September 30). The limit for the 1998 fiscal year was reached in early May of last year, with the result that the INS ceased to approve any new H-1B petitions until October 1.

Since the Department of Labor's ("DOL's") temporary computer problems have recently been remedied, the large number of H-1B petitions that were awaiting resolution of these problems will be filed in the very near future, making it almost certain that the 115,000 cap on new H-1B approvals for the 1999 fiscal year will be reached by mid-April or early May of this year. We have been informed that between 10,000 and 11,000 new H-1B petitions are being processed on a monthly basis at the INS Service Centers.

In view of the high probability that the H-1B cap will be reached within the next two months, all employers who are considering hiring foreign specialty workers in H-1B status are urged to file their petitions for these persons as soon as possible. In particular, companies that currently employ persons in F-1 Practical Training status and plan to change the status of such persons to H-1B when their practical training periods draw near are advised to prepare and file their H-1B change of status applications without delay. A failure to do so may result in an interruption in the employee's employment if the expiration of the employee's practical training occurs after the H-1B cap has been reached, but before October 1, 1999.

Please note that the 115,000 H-1B cap applies only to new petitions; extension applications and petitions for persons already in H-1B status who wish to change their employers are not included in the INS' count.

All further developments with respect to the 115,000 H-1B cap will be closely monitored by the Cooley Godward LLP Immigration Practice Group.

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