H-1B Compliance:

9 Costly H-1B Visa Mistakes Employers
Make and How to Avoid Them

Presented by

Cowles & Thompson, PC
Fe...
Ask Questions Anytime
Use your chat pane to type
and send your questions.
Questions will be answered
during the presentati...
Presenters

Angela M. Lopez

Ann M. Badmus

Thu T. Nguyen
Webinar Agenda
H-1B Application Mistakes to Avoid

1

LCA Compliance Mistakes to Avoid

2

How To Document LCA Compliance
...
Agencies
U.S. Department of Labor (USDOL)

U.S. Citizenship and Immigration
Service (USCIS)
Wage and Hour Division (WHD) o...
Enforcement and Investigation
USCIS

USDOL

WHD

• Surprise Site Visit
• Petition Denial/Revocation
• Audit
• Fines/Debarm...
Penalties
Civil Money Damages

Back Wages
Fringe Benefit Reimbursement
Debarment

Negative Publicity
H-1B Application Mistakes to Avoid
H-1B Application Process
ETA9035
Labor Condition Application (LCA)

I-129 H Petition

I-797 Approval Notice
Mistake # 1
Failure to Provide Accurate Data
Employer
Information

•Correct Name
•FEIN

Employment •Rate of pay
Informatio...
Mistake #2
Failure to File on Time

H-1B Numerical Limitations
Extensions/ Renewals

Amendments
Labor Condition Application
Mistakes to Avoid
Mistake #3
Failure to Pay the Required Wage

Employers must pay higher of
actual or prevailing wage rate,
pay for nonprodu...
Prevailing Wage Resources
Occupational Employment Statistics
(OES) Survey
USDOL Prevailing Wage Determination
(safe harbor...
Prevailing Wage
Choose the appropriate
criteria
•Occupational Class
•Skill Level – I,II,III,IV
•Geographic area of intende...
Actual Wage
Documented wage paid to all other
employees with similar experience and
qualifications for the specific
employ...
Mistake #4
Violating Wage Deduction Rules

Employers may not deduct its
business expenses from
employee’s wages
•ACWIA fee...
Mistake #4
Violating Wage Reduction Rules
(cont.)

Employers may not require
repayment of petition costs or
related busine...
Mistake #5
Failing to Pay Wages on Time
Employer’s obligation to pay begins
when the employee is available to
work but no ...
Mistake #6 - Benching
Employer must pay required wage for
all nonproductive time related to
employment caused by:
• Lack o...
Mistake #7 - Failing to Properly
Document Employment Termination
Written notice of termination to
employee

Bona Fide
Term...
Mistake #8
Failing to Document Changes
New work locations in a different
prevailing wage location
Significant changes in j...
Mistake #9 – Failing to Maintain
Required Documentation
Public Access File - LCA and other
documents available for public
...
How to Document LCA Compliance
Public Access File
Certified LCA (ETA9035)
Rate of pay for the H-1B worker

Actual wage memorandum
Prevailing wage determi...
Public Access File (cont.)
Acknowledgement of receipt of LCA
by H-1B employee
Summary of benefits offered to all
workers
L...
Public Access File (cont.)
Post-employment changes must
be documented:
• Copy of new LCA for new location(s)
• New rate of...
Public Access File (cont.)
Corporate organizational changes must
be documented:
• Sworn or notarized statement by successo...
Public Access File (cont.)
H-1B Dependent Employers must include
in the PAF:
• List of “exempt” H-1B workers, if LCA
indic...
LCA File
Maintain for USDOL (not disclosed to
public):
• All documents included in public access file
• LCA receipt acknow...
Retention Requirements
Public access file must be
maintained:
•At employer’s principal place of
business or at the employe...
H-1B/LCA Internal Audits
Benefits of an Internal Audit
Identify correctable errors
Ensure consistency and integrity of
documents
Prepare for USDOL ...
Conducting an LCA Self-Audit
•Public Access File for each
occupation
•Appropriate position
classification
•Correct prevail...
Conducting an LCA Self-Audit (cont.)
• Documentation of organization
changes

• Payroll records reflect compliant start
da...
Preparing for USDOL and USCIS
Audits & Investigations
Preparing for an Audit/Site Visit
Review the H-1B petition
Conduct H-1B/LCA self-audit
Inform your client of potential for...
Preparing for an Audit/Site Visit
Prepare FDNS Compliance File
•Copy of H-1B petition
•Employee W-2 forms, three months pa...
Legal Notice
.

Facts of individual situations differ.
The information provided here is
general in nature and should not b...
Questions? Need More Information?
Feel free to contact us.
Cowles & Thompson, PC
901 Main Street
Suite 3900
Dallas, Texas ...
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H-1B Mistakes to Avoid - 2014

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Whether you employ one H-1B employee or 100 H-1B employees, the Department of Homeland Security (DHS) and the Department of Labor (DOL) require you to follow very specific rules. Failure to comply with these rules can lead to heavy fines, penalties, payment of back wages, debarment, and negative publicity for your business. The DOL has ordered millions of dollars in back wages and imposed thousands of dollars in fines on companies after auditing their records and practices.
Attend this tutorial for the right information you need to avoid this outcome for your company and safely hire and retain key H-1B employees.

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H-1B Mistakes to Avoid - 2014

  1. 1. H-1B Compliance: 9 Costly H-1B Visa Mistakes Employers Make and How to Avoid Them Presented by Cowles & Thompson, PC February 26, 2014
  2. 2. Ask Questions Anytime Use your chat pane to type and send your questions. Questions will be answered during the presentation and during the Q & A session.
  3. 3. Presenters Angela M. Lopez Ann M. Badmus Thu T. Nguyen
  4. 4. Webinar Agenda H-1B Application Mistakes to Avoid 1 LCA Compliance Mistakes to Avoid 2 How To Document LCA Compliance 3 H-1B/LCA Internal Audits 4 5 DOL And DHS Investigations Copyright 2009
  5. 5. Agencies U.S. Department of Labor (USDOL) U.S. Citizenship and Immigration Service (USCIS) Wage and Hour Division (WHD) of USDOL
  6. 6. Enforcement and Investigation USCIS USDOL WHD • Surprise Site Visit • Petition Denial/Revocation • Audit • Fines/Debarment • Complaint Investigation • Damages/Debarment
  7. 7. Penalties Civil Money Damages Back Wages Fringe Benefit Reimbursement Debarment Negative Publicity
  8. 8. H-1B Application Mistakes to Avoid
  9. 9. H-1B Application Process ETA9035 Labor Condition Application (LCA) I-129 H Petition I-797 Approval Notice
  10. 10. Mistake # 1 Failure to Provide Accurate Data Employer Information •Correct Name •FEIN Employment •Rate of pay Information •Locations Business Information •H-1B employees •Third party sites
  11. 11. Mistake #2 Failure to File on Time H-1B Numerical Limitations Extensions/ Renewals Amendments
  12. 12. Labor Condition Application Mistakes to Avoid
  13. 13. Mistake #3 Failure to Pay the Required Wage Employers must pay higher of actual or prevailing wage rate, pay for nonproductive time, and offer benefits on the same basis as offered to U.S. workers
  14. 14. Prevailing Wage Resources Occupational Employment Statistics (OES) Survey USDOL Prevailing Wage Determination (safe harbor) Davis-Bacon, McNamara O’Hara Service Contract Act Collective Bargaining Agreement Independent Survey
  15. 15. Prevailing Wage Choose the appropriate criteria •Occupational Class •Skill Level – I,II,III,IV •Geographic area of intended employment
  16. 16. Actual Wage Documented wage paid to all other employees with similar experience and qualifications for the specific employment •Experience and qualifications •Education •Job responsibility and function •Specialized knowledge •Legitimate business factors
  17. 17. Mistake #4 Violating Wage Deduction Rules Employers may not deduct its business expenses from employee’s wages •ACWIA fee •Anti-Fraud fee •Attorney fee
  18. 18. Mistake #4 Violating Wage Reduction Rules (cont.) Employers may not require repayment of petition costs or related business expenses upon employee’s termination of employment
  19. 19. Mistake #5 Failing to Pay Wages on Time Employer’s obligation to pay begins when the employee is available to work but no later than 30 days after employee enters U.S. with H-1B visa OR 60 days after H-1B validity date if employee is already in U.S. in H-1B status.
  20. 20. Mistake #6 - Benching Employer must pay required wage for all nonproductive time related to employment caused by: • Lack of work or client contract • Lack of licensing • Studying for licensing • Employer required training Payment is not required for truly voluntary absences
  21. 21. Mistake #7 - Failing to Properly Document Employment Termination Written notice of termination to employee Bona Fide Termination Required Offer of return transportation to depart the U.S. Written notice to USCIS withdrawing H-1B
  22. 22. Mistake #8 Failing to Document Changes New work locations in a different prevailing wage location Significant changes in job duties or working conditions Mergers & acquisitions or other corporate changes
  23. 23. Mistake #9 – Failing to Maintain Required Documentation Public Access File - LCA and other documents available for public access within one day of filing the LCA FDNS Audit File for Surprise Site Visits
  24. 24. How to Document LCA Compliance
  25. 25. Public Access File Certified LCA (ETA9035) Rate of pay for the H-1B worker Actual wage memorandum Prevailing wage determination Proof of LCA posting
  26. 26. Public Access File (cont.) Acknowledgement of receipt of LCA by H-1B employee Summary of benefits offered to all workers List of entities included as “single employer”
  27. 27. Public Access File (cont.) Post-employment changes must be documented: • Copy of new LCA for new location(s) • New rate of pay, actual wage memorandum, proof of posting, employee acknowledgement of LCA, prevailing wage determination • Salary adjustments, e.g. cost-of-living, promotion to advanced level in same occupations
  28. 28. Public Access File (cont.) Corporate organizational changes must be documented: • Sworn or notarized statement by successor accepting all liabilities • List of H-1B workers transferred to successor • Each affected LCA number and effective date • Description of actual wage system • Successors employer identification number (EIN)
  29. 29. Public Access File (cont.) H-1B Dependent Employers must include in the PAF: • List of “exempt” H-1B workers, if LCA indicates only exempt workers will be employer or • Summary of recruitment methods and timeframes for recruitment of U.S. workers and • Attestation that hiring an H-1B worker will not displace any U.S. worker in similar position within 90 days before or after the H-1B petition is filed.
  30. 30. LCA File Maintain for USDOL (not disclosed to public): • All documents included in public access file • LCA receipt acknowledgement from H-1B employment • Records showing wage rate for all other employees for the specific employment at the specific place of employment • Any documentation that supports the prevailing wage determination • Documentation on the offer of benefits • Documentation on working conditions
  31. 31. Retention Requirements Public access file must be maintained: •At employer’s principal place of business or at the employee’s worksite. •Throughout the term of the H-1B employee’s employment and one year after termination of employment.
  32. 32. H-1B/LCA Internal Audits
  33. 33. Benefits of an Internal Audit Identify correctable errors Ensure consistency and integrity of documents Prepare for USDOL or USCIS audit Reduce liability by showing good faith
  34. 34. Conducting an LCA Self-Audit •Public Access File for each occupation •Appropriate position classification •Correct prevailing wage/actual wage •Documentation of employment changes
  35. 35. Conducting an LCA Self-Audit (cont.) • Documentation of organization changes • Payroll records reflect compliant start date • Appropriate notifications/amendments to USCIS • Verify audit results with attorney
  36. 36. Preparing for USDOL and USCIS Audits & Investigations
  37. 37. Preparing for an Audit/Site Visit Review the H-1B petition Conduct H-1B/LCA self-audit Inform your client of potential for site visit if employee works at third-party location Identify company representative(s) to meet with auditors Establish procedures for reception and training
  38. 38. Preparing for an Audit/Site Visit Prepare FDNS Compliance File •Copy of H-1B petition •Employee W-2 forms, three months paystubs •Previous approval notices, current passport, current I94, educational documents for employee •Current job description, record/itinerary of off-site assignments •LCA if work location has changed •Evidence of termination of employment, if applicable
  39. 39. Legal Notice . Facts of individual situations differ. The information provided here is general in nature and should not be relied upon for specific situations. Consult with an experienced immigration attorney to ensure compliance
  40. 40. Questions? Need More Information? Feel free to contact us. Cowles & Thompson, PC 901 Main Street Suite 3900 Dallas, Texas 75202 214-672-2000 Telephone immigration@cowlesthompson.com www.cowlesthompson.com Copyright 2009

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