Omnibus Bill Signed - USCIS Clarifications
Posted : Dec 08, 2004 - 9.00pm ET.

The Omnibus Appropriations Bill, which contains significant immigration provisions, was signed into law by the President on December 8, 2004. This Bill carries the new and reinstated H1B fees, both for training of U.S. workers and fraud detection; 20,000 additional H1B cap exemptions for persons with Masters Degrees or degrees above the masters from U.S. educational institutions; and additional restrictions on L1Bs. For more details about this Bill, see our Nov 22, 2004 NewsFlash, Omnibus Bill Not Yet Passed - H1Bs and L-1s to be Affected and our Dec 03, 2004 article, Prevailing Wages under the Omnibus Bill, both available on MurthyDotCom.
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The USCIS has provided clarification on some issues regarding the law, the most important of which are summarized below.
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H1B Fees
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The law requires most H1B employers to pay a $1500 fee to the USCIS. Employers with 25 or fewer full-time employees will only be required to pay $750. Employers who were exempt from the old $1000 fee imposed by the American Competitiveness and Workforce Improvement Act of 1998 (ACWIA) are exempt from paying either the $1500 or the $750 fee. This fee applies to any non-exempt petitions filed with the USCIS after December 8, 2004.
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Fraud Prevention Fee in H and L Cases
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A new Fraud Prevention and Detection Fee in the amount of $500 must be paid by an employer seeking a beneficiary's first grant of H1B or L classification or by an employer seeking to change the beneficiary's employer within those classifications. Only petitions to amend or extend status filed by an existing H1B or L employer for an existing H1B or L employee, will be exempt from this fee. This fee will apply to petitions filed with the USCIS on or after March 8, 2005.
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20,000 Additional H1B Filings
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The USCIS has stated that at this time it will not begin accepting the petitions for the 20,000 H1B beneficiaries who have earned masters' degrees or higher from U.S. institutions of higher education, since the provision is not effective until March 8, 2005. USCIS has indicated that they will provide additional guidance on these filings at a later date.
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Conrad Physician H1Bs
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The USCIS has stated that it will begin to accept the petitions for H1Bs that are exempt under the Conrad 30 extension, which was provided in Public Law 108-441, signed into law on December 3, 2004. These employers should be mindful of the new fees, as an H1B cap exemption does not always equate to an exemption of the $1500 / $750 or the $500 additional fees.
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L1Bs Must Work One Year Minimum
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The USCIS confirms that the L provisions, like working a minimum of one year with the qualifying entity abroad, or not being able to work at a worksite other than for the L-1 petitioning employer, do not apply until June 6, 2005. Only the Fraud Prevention and Detection Fee of $500 will apply from March 8, 2005, as stated above. Our prior articles available on MurthyDotCom provide details on these provisions.