·        H-1B Fee Increase effective December 18, 2000.  The INS filing fee for H-1B petitions was increased to $1,110 on December 15, 2000, except for H-1B petitions filed on behalf of: 1) institutions of higher education; 2) nonprofit organizations affiliated with an institution of higher education; and 3) nonprofit research organizations or a governmental research organizations.  The fee increase also does not apply when filing amended petitions, second or subsequent requests for extension by the same employer, or petitions to correct an INS error.

·        H-1B Employees Changing Work Location.  The U.S. District Court for the Eastern District of Michigan recently upheld an INS decision denying a petition to extend H-1B status on the ground that the worker had changed work locations permanently, without prior approval from Department of Labor and the INS, which caused him to be out of status, and thereby ineligible to extend his H-1B.  CDI Information Services, Inc. v. Reno, 101 F.Supp.2d 546 (E.D. Mich. 2000)  The court agreed with the INS that a change in work locations (from Oregon to Hawaii) was a significant change in working conditions.  The court reasoned, therefore, that the H-1B worker had failed to maintain the status previously granted by the INS, and was out of status.  The court confirmed that an H-1B worker’s permanent transfer outside of his authorized area of employment requires the employer, prior to the permanent transfer, to seek approval from the INS and obtain a new determination from the Department of Labor.  Failure to do so results in the H-1B employee being considered out of status.  In that case, the H-1B employee submitted a pay stub showing that he was maintaining his status by working with his H-1B sponsor, but the pay stub also showed that his moving expenses were paid, his state withholding taxes were changed and that he was living in Hawaii.  The court’s ruling does not affect H-1B employees on temporary assignment at a new work location, however, it does indicate the need to document the fact that it is a short-term assignment.  Previous INS policy memoranda have confirmed that work re-location within the same metropolitan area would not result in a significant change in working conditions sufficient to require seeking approval from the INS or obtain a new determination from the Department of Labor.

·        Change of Status from F-1 Practical Training to H-1B.  We recommend that people currently working in F-1 Practical Training file petitions to extend their status, if possible, or apply to change their status to H-1B about six months before their F-1 Practical Training is set to expire.  INS processing times slow during the holidays, and there is generally no basis for interim employment authorization once the EAD card expires.

·      New H-1B Labor Condition Application form.  The Department of Labor has announced a new H-1B Labor Condition Application form (LCA).  Effective January 19, 2001, only the new version of the LCA will be accepted.  The Department of Labor has estimated that the LCA faxback system will be taken out of commission to be retooled to accept the new LCA form from January 19, 2001 through February 5, 2001.  H-1B petitions may still be filed with the INS during that time frame, but, we anticipate that processing of the petitions will be slowed by several weeks while the LCA faxback system is updated to accept the new forms.  Some H-1B employees may begin working with a new employer upon the filing of the H-1B petition.  (For the full text of AC21, please click on Home, then scroll down to FAQS and click on Full Text of New Law, AC21)

·      Adjustment of Status Available for People with a Status Violation.  On December 21, 2000, the Legal Immigration and Family Equity Act (LIFE Act) became law.  Under the LIFE Act, Section 245(i) of the Immigration and Nationality Act (INA) will be temporarily available to people who were present in the United States on December 21, 2000.  That provision will allow a person who is ineligible to adjust status in the United States because of an immigration status violation, to pay a $1,000 penalty and continue with adjustment of status while residing in the United States.  In order to be eligible for 245(i) adjustment under the LIFE Act, the applicant must be the beneficiary of a Labor Certification or I-140 (Immigrant Visa Petition) which was filed on or before April 30, 2001.

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