PF Cheng's Law Blog

Well, what do you know, more than 2 weeks after the start of the H-1B season, there are still spaces available!  This is both good news and bad news from an attorney's point of view.  The good news is that I can continue to file petitions on behalf of my clients; the bad news of course is that companies are just not hiring foreign workers, hence the relatively low number of petitions.

According to the data released by the United States Citizenship and Immigration Services (USCIS), as of April 9th, they have received only 42,000 H-1B petitions.  Considering that the annual cap is 65,000, that means you still have over 23,000 spaces available for those interested in applying.  In the past couple years, the quota was filled on the first day of application, so the fact that this year's quota lasted this long is a truly astounding turn of events.

The relatively low number of applicants is a direct result of the economic recession.  Firms in every sector are laying off employees, and this means more people are competiting for less number of jobs.  Even jobs traditionally held by foreigners (or jobs that used to be deemed undesirable) are now being pursued by highly qualified American applicants.  In this economic climate, a foreign worker has to be truly outstanding to justify the efforts that an employer must expand in securing his H-1B.

First of all, the employer must pay a 1,000 dollar mandatory employer fee for each foreign workers that he employs.  In addition, the employer must comply with government regulations and file a Labor Condition Application (LCA) with the regional office of the U.S. Department of Labor. The employer must then keep a complete record for each H1B worker; including the prevailing wage determination, working conditions documents, the LCA, and other documents.  Last but not least, the employer must pay all costs and fees associated with an employee's H-1B application (many employees volunteer to pay the fees out of their own pocket, that is actually against ther rule).  In all, an employer can expect to pay anywhere between 4,000 to 5,000 dollars for each foreign employee.  Back when the economy is strong and skilled workers are in short supply, firms are willing to pay these costs.  But now that the economy is in the trenches, a foreign H-1B worker, with all the associated costs, suddenly becomes a rather unappealing option.