Immigration Attorney
Services & Fees

November 22, 2004

The Senate and House passed an Omnibus Appropriations Bill (H.R. 4818) that contains a number of provisions affecting the H-1B and L-1 nonimmigrant categories. The bill now goes to President Bush for signature.

The H-1B provisions will generally become effective 90 days after signature; the L-1 provisions, 180 days after signature.

The H-1B cap exemption, the Education and Training fee change, and fraud fee provisions described below will take effect immediately upon the President’s signature.

H-1B Provisions


Exempts aliens with Master’s or higher degrees from U.S. schools from 65,000 H-1B Cap.

H-1B petitions filed for foreign nationals who hold Master’s or higher degrees from U.S. universities will not be counted against the annual 65,000 H-1B cap, up to a limit of 20,000 per year.

New filings under this provision for the current fiscal year (ending September 30, 2005) should be permitted, and the USCIS should clarify in the near future the manner in which such filings may be made and accepted.

Restores and Increases H-1B Training Fee:


The $1000 H-1B training fee, which had sunset on October 1, 2003, is made permanent by the bill and increased to $1500.

This is a $1,500 H-1B "Education and Training Fee" for each H-1B petition filed for a new employer, change of employer, and first extension for an existing employer.

Employers with fewer than 25 full time employees (including U.S. affiliates and subsidiaries) will pay a lower $750 fee. The Education and Training fee change will be immediately applicable upon enactment. Second and subsequent extensions filed by the same employer are exempt from the Education and Training fee.


Restores H-1B Dependency and Attestations


This provision makes permanent the provision requiring non-displacement attestations on Labor Condition Applications filed by employers who are H-1B dependent (generally, those whose full time equivalent workforce comprises 15% or more H-1B workers) or have committed an immigration-related willful failure or misrepresentation during the preceding 5 years.

Allows the Department of Labor to self-start H-1B investigations without receiving a formal complaint, based only on "reasonable cause to believe" an employer has violated the H-1B rules (effective 90 days after enactment).

Excuses employers who act in good faith from minor technical violations of the H-1B compliance rules, such as incorrect prevailing wage determinations. Employers will have a 10-day period to correct technical deficiencies.


Requires H-1B employers to pay 100% of prevailing wage. Introduces 4-tier DOL wage survey


This provision requires employers of H-1B aliens to pay 100% (rather than 95%) of the prevailing wage. If the DOL uses a governmental survey in computing the prevailing wage, the survey shall comprise four tiers of wages, rather than the two-tier system currently used by the OES.


Introduces $500 Fraud Prevention and Detection Fee for every H-1B petition.


Initial or change of status petitions for H-1B workers will have to include a $500 fee to be used to combat and detect fraud. This $500 fee will not be required for same-employer extensions.


L-1 Provisions


Prohibits third-party placement of L-1B transferees.


This provision prohibits L-1B visa holders (L-1A holders are not affected) from being primarily stationed at the worksite of another employer in cases if (a) the L-1B visa holder is controlled and supervised by an unaffiliated employer; or (b) the placement of the L-1B visa holder at the third party site is part of an arrangement to provide labor for the third party rather than placement at the third party site in connection with the provision of a product or service involving specialized knowledge specific to the petitioning employer.


Increases qualifying experience requirement for Blanket L transferees from 6 months to 1 year.


This provision eliminates the provision permitting an L-1 transferee under an L Blanket petition to transfer to the U.S. with six months of qualifying experience abroad. This will apply only to initial applications filed on or after the effective date of the subtitle.


Introduces $500 Fraud Prevention and Detection Fee for every L-1 petition.


Initial or change of status petitions for L-1 workers will have to include a $500 fee to be used to combat and detect fraud. Blanket L visa applications filed at consulates will also have to include the $500 fee.

We will provide more information as soon as it becomes available.