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Global HR News. London Euro-Atlantic Conference November 27, 2007. Austin T. Fragomen, Jr., Esq. Fragomen, Del Rey, Bernsen & Loewy, LLP 515 Madison Avenue, New York, N.Y. 10022 Phone: (212) 688-8555 / Fax: (212) 758-7215 www.fragomen.com. Immigration Policy and Global Talent.
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Global HR News London Euro-Atlantic Conference November 27, 2007
Austin T. Fragomen, Jr., Esq.Fragomen, Del Rey, Bernsen & Loewy, LLP515 Madison Avenue, New York, N.Y. 10022Phone: (212) 688-8555 / Fax: (212) 758-7215www.fragomen.com
Immigration Policy and Global Talent • Global competition for talent • Globalization of human resources • Personal mobility • Demographics • High skill deficiencies
Governmental Response • Dwarfed by bigger policy concerns • irregular migration • ethnic pluralism • assimilation • refugees & displaced persons • border protection • security concerns
Labor migration high skilled essential workers matching supply and demand
Labor considerations labor market impact immediate displacement long term effect anecdotal v. empirical
Competition for Talent: U.K. Response • Tier I – Highly skilled and Entrepreneurs replaces highly skilled migration program • Points driven system • earnings • academic qualifications • age • English language requirement
Tier II – work permit category replaces current program academic qualifications job offer – prearranged earnings English language requirement Students graduates of U.K. educational institutions 12 month work permission application work permit afterward
Administrative Streamlining consular applications more user friendly corporate pre-certification
Permanent Residence 5 yr. for eligibility entrepreneurs English language requirement
Other Country Proposals: France • Work and residence permits combined for intra-company and intra-group transferees • Both foreign and locally employed • Valid 3 years with yearly verification of salary and conditions of employment • Spousal work permission • Students with advanced degrees given 6 months residency rights to find employment
France con’t • Labor market test waived for students for salary above certain threshold • Ireland has similar provision with discretionary approval of work permit with salary below work permit threshold
Other Countries: Netherlands • Knowledge migrant • Joint work permit and residence permit • Single agency processing • 5 year admission • Income criteria
The U.S. – Failed Policy • Role of Congress • H-1B cap exhausted • degree holder cap reached 1st day • advanced degree 3 weeks later • plight of recent graduates
Legislative Relief • 2006 – 109th Congress • Comprehensive reform passes Senate • Enforcement only passes House • 700 miles of fence and priority for athletes
2007 – 110th Congress Comprehensive reform rejected by Senate Opposition to legalization from right Opposition guest workers from left Shift from family-based to employment-based migration Drastic departure from EB to points Restrictions on H-1B/L-1B categories
SKIL Act – temporary workers Increase H-1B cap to 115,000 Market adjustment to 180,000 Exempt U.S. advance degree graduates 20,000 cap for non-U.S. advance degrees STEM Extend student practical training to 2 years
SKIL Act – permanent residence Increase employment-based preferences Exempt U.S. advanced degree STEM Exempt non-U.S. advance degree STEM with 3 years experience U.S. employer
Proposed point system Only for permanent residence Occupation (specialty or high demand) U.S. employment in STEM or health occupation Employer paying at least half of fee Experience Age (25-39) Education (3 levels) English (2 levels) and civics Relationship to USC or permanent resident
Temporary Worker restrictions Non-displacement and recruitment attestations for H-1B Prevailing wage determination for L-1B Requirement that H-1B and L-1’s cannot exceed 50% of workforce Restriction on outplacement of L and H-1B workers where indicia of employment Prevailing wage at least level II OES wage Increase H-1B fee to $5,000 for training and education
Worksite Enforcement Verify status of all new hires (18 months effective date) Verify all existing employees (3 year effective date) Standardize documents issued by states with biometrics Commence work on tamper-proof social security card
What now – legislation ? • Enforcement only bills • Piecemeal legislation – AgJobs, DREAM Act, SKIL Act, Enforcement • Recapture unused EB numbers • Increase H-1B cap • Extend practical training • Verification system sunsets November 2008 • Legislative vehicles
Government response State employee verification legislation Social security no-match letters E-verify and enforcement “get tough” attitude in adjudications Strengthen border security Pre-screening of Visa Waiver applicants Trade agreements
Employer response Adjusting recruitment to meet H-1B crisis Contingent offers/training abroad Pre-planning to be prepared Multiple filings/pre-registration Long term consequences Possibility of practical training extension to 29 months
Conclusion • Competition for talent not top priority • Progress modest but U.S. moving backwards • National politics v. needs of employers • Employer community needs to raise mobility as a major competitive issue