The H-1B visa program was designed to help companies find skilled workers in instances where there wasn’t a sufficient supply in their local, American workforce. However, abuses of the system have led to a series of changes, and one of the most recent ones takes aim at the outsourcing industry.
Form ETA-9035 & 9035E from the US Department of Labor (DOL) now have questions that could force employers to state whether the H-1B visa holder will be assigned to a “secondary entity” as part of their employment. Additionally, it requires employers to identify who those companies are, effectively forcing them to reveal their clients.
The Updates to Form ETA-9035 & 9035E
On the new version of the form, employers applying for H-1B visas first have to answer whether the workers “will be placed with a secondary entity at this place of employment.” Essentially, the DOL is determining whether the visa holder will actually perform duties for a third-party, acting as a contractor.
If the answer to the question is “yes,” the employer applying for the H-1B visas then has to identify the “entities,” providing a legal business name, pay rates and prevailing wage rates for the work for every third-party worksite.
H-1B applicants aren’t the only ones who have to address these questions. The new form also applies to H-1B1 and E-3 petitions.
Who is Impacted by the H-1B Change
While the most obvious group impacted by the change to the H-1B process is companies that contract out their employees to other business, the impact will actually extend beyond those businesses. Anyone who uses firms that rely on H-1B visa holders to function as contractors for the firm may also feel the sting.
Exactly what impact the changes will have, aside from requiring employers to reveal information about clients they provide contractors to, isn’t entirely clear. However, the US government hopes it will help them combat H-1B visa fraud, which is actually beneficial to companies who use the program properly.
Some organizations that need H-1B visa holders to maintain operations have previously had difficulty securing enough visas, and some suspect that large contracting firms played a significant role in those challenges landing the majority of the visas. If those activities are even somewhat curtailed, the impact may be positive for companies that previously struggle.
Additionally, businesses that rely on reputable staffing firms for contract or contingent workers likely won’t see any difference. Many recruitment agencies don’t rely on (or even use) the H-1B visa program to secure enough workers to handle their client’s needs. Instead, they focus on the existing US workforce, using their recruitment and hiring skills to obtain top talent.
Contact The Armada Group for Questions About H-1B Hiring
If you would like to learn more about how the H-1B visa change may impact you, the team at The Armada Group can help. Contact us with your questions or concerns today and see how our services and H-1B visa program expertise can benefit you.