H-1B MODERNIZATION RULE TAKES EFFECT FRIDAY, JANUARY 17th
The H-1B modernization regulation, which was first proposed in October 2023, goes into effect this Friday, January 17th. It represents a significant overhaul of the H-1B regulations aiming to clarify requirements, enhance compliance, and improve efficiency.
This rule is several hundred pages long, but highlights include:
Deference for all petitions filed on Form I-129: This regulation now codifies that USCIS adjudicators should give deference to prior approvals for the same employer and same beneficiary and same underlying facts (job title and duties). This means that unless the parties have changed or there is another material change, USCIS should defer to the prior approval. This applies to all visa categories that get filed on Form I-129 including H, L, O, P, Q, and TN.
NOTE: Under the first Trump administration, they did away with “deference” and adjudicated each petition as if it were new. Deference is now codified in this new rule.
Specialty Occupation Definition: The rule makes several revisions to the definition of specialty occupation including clarification of the wording that a specialty occupation “normally” requires a bachelor’s degree. The rule indicates that "normally" means that it does not "always" require a bachelor's degree. The employer can accept several different degrees for a position if the fields of those degrees are “directly related” to the duties of the offered position. Then the rule defines that a directly related degree must have a “logical connection” to the duties of the H-1B position. The position must also require the use of specialized knowledge in the field and not merely a basic degree requirement.
The rule gives specific examples of specialty occupations and the types of degrees that would be acceptable, including for Computer Systems Analyst, Market Research Analyst, Teacher, Economist and others.
NOTE: Under the first Trump administration, they were issuing requests for evidence (RFE) that stated that a specialty occupation must require a bachelor’s degree in only one specific field that is required for the position. This rule allows that there can be several degree requirements for the position.
Expands cap exempt organizations: The regulation broadens the definition of “nonprofit research organization” or “government research organization” for cap exempt organizations to mean that research is a fundamental activity of the organization.
NOTE: Under the first Trump administration, they required that research be the primary activity of the organization. The new rule codifies that it can be a fundamental activity and not the primary activity of the organization.
Codifies Requirement for Amended Petitions: The rule codifies the long standing USCIS policy that when there is a material change, such as a change of location, a new H-1B petition is required. The amended petition must be filed before the change takes place. The exception to this is when the change of location is in the same area listed in the Labor Condition Application (LCA).
Allows H-1B for owners: The new rule allows for “beneficiary-owners” for H-1B petitions where the H-1B beneficiaries have a controlling interest in the petitioning company. The USCIS will limit the duration of the initial approval and approval of the first extension to 18 months .
Site visits: Codifies and expands the scope of site visits for H-1B petitions and requires compliance with site visits or else the petition could be denied or revoked. This is particularly relevant when the employee is working at a third-party location or when the company has a remote working arrangement.
The rule also addresses job changes and H-1B portability, when an employer must update a public access file, wage compliance, and a commitment by USCIS to improve processing times for adjudicating H-1B petitions.
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