Economic Stimulus Package: New H-1B Visa Provision, No E-Verify Changes

The American Recovery and Reinvestment Act—commonly known as the economic stimulus package—signed by President Barack Obama on February 17 includes a provision that will restrict for two years the ability of companies receiving TARP funding to sponsor new H-1B workers.

During the two-year period following enactment of the economic stimulus package, companies that have received TARP funding will not be able to hire an individual in H-1B status unless the company complies with requirements for an H-1B dependent employer. These rules require employers to attest that the placement of the H-1B worker did not and will not displace a U.S. worker in an essentially equivalent job 90 days before and after the filing of the H-1B petition. The employer must also attest it has taken good faith steps to recruit U.S. workers and that it has offered the position to any qualified U.S. workers.

A provision that would have required the use of E-Verify by federal contractors hired under the authority of the stimulus was excluded from the final bill. However, under another recent rule, E-Verify will be mandatory for all federal contracts entered into after May 21 unless a further extension is granted. To view a past article about E-Verify, click here.