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New Law signed by President Bush on December 8, 2004 Significantly Changes Aspects of the H-1B Program

On December 8, 2004, President Bush signed the Omnibus Appropriations Act of Fiscal Year 2005, which contains provisions that significantly affect the H-1B nonimmigrant visa category, as described below.

Changes to H-1B Fees

  • H-1B Training Fees:

    Every non-exempt employer who employs more than 25 full-time equivalent employees, including full-time equivalent employees of any affiliate or subsidiary, must pay a training fee of $1,500. Every non-exempt employer who employs no more than 25 full-time equivalent employees, including full-time equivalent employees of any affiliate or subsidiary, may submit a reduced fee of $750. These training fees apply to any non-exempt petition filed with the USCIS after December 8, 2004.

    Exempt institutions include, but are not limited to, institutions of higher learning, nonprofit organizations or entities related to, or affiliated with, an institution of higher learning and nonprofit research organizations or governmental research organizations.

  • H-1B Fraud Prevention and Detection Fee:

    Every employer seeking a beneficiary’s initial grant of H-1B must pay a $500 Fraud Prevention and Detection fee. This fee also applies to employers seeking to change a beneficiary’s employer under the H classification. Other than petitions to amend or extend stay filed by an existing employer, there are no exemptions from the $500 fee. The new $500 fee applies to any petition filed with the USCIS on or after March 8, 2005.

    The above-mentioned fees are in addition to the base processing fee of $185 to file a Petition for Nonimmigrant Worker (Form I-129) and any premium processing fees, if applicable.

    Changes to H-1B Cap Calculations

  • The first 20,000 H-1B beneficiaries who have earned a master’s degree or higher from a U.S. institution of higher education will not be subject to the annual H-1B visa cap of 65,000. Petitions under this new provision cannot be filed at this time, as the provision is not effective until March 8, 2005.

    For more information, please do not hesitate to contact this office.

    POSTED: DECEMBER 21, 2004

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