NewsFlash! H1B Cap for FY2006 Reached on August 10, 2005!
Posted Aug 12, 2005; update Aug 31, 2005
©MurthyDotCom
NOTE On August 31, 2005, an update of this matter was posted on MurthyDotCom. See NewsFlash! H1B Aug 10th Filings - Rejections Arriving.
©MurthyDotCom
The USCIS announced earlier today, Friday, August 12, 2005, that the H1B Cap for fiscal year (FY) 2006 was already reached on Wednesday, August 10, 2005! This does not apply to cases filed for individuals with U.S. masters' degrees or above who are eligible for one of the 20,000 special H1B cap exemptions. The cap applies to the cases that were filed against the regular H1B cap of 65,000 per fiscal year. This means that FY2006 H1B cap-subject cases received by the USCIS on or after August 11, 2005 will be rejected. Even for H1B cases filed and received at USCIS on August 10, 2005, the USCIS has set up a procedure to select those applications at random, as explained below.
©MurthyDotCom
Cases Filed on August 10, 2005 : Random Drawing
©MurthyDotCom
Those cases received by the USCIS on August 10, 2005, will be subject to a computer-generated random selection process to determine whether the applicant will be selected for an H1B under the few remaining H1Bs under the FY2006 quota. This is because there are not enough numbers to cover all the cases filed even on August 10, 2005. Thus, some of those cases will make it into the FY2006 cap, while others will not. The selection will be made on a random basis.
©MurthyDotCom
There was no information provided as to how many cases were filed on August 10, 2005, and how many numbers remained on that day. There was also no information as to how long it will take for those who filed their H1B petitions on August 10, 2005 to be notified regarding their fate.
©MurthyDotCom
Chile / Singapore Numbers Using Part of H1B Quota
©MurthyDotCom
One of the reasons that the cap has been reached so quickly is that, out of the 65,000 cap numbers, 6,800 are set aside under Chile / Singapore free-trade agreements. The law provides that any unused Chile / Singapore numbers are reallocated to the FY2006 cap. These numbers are supposed to be made available on October 1, 2006, which is the start of FY2007. The USCIS press release indicated that they are authorized to make these numbers available within the first 45 days of FY2007 for those cases filed within FY2006. The USCIS stated that they will make an announcement at that time and will advise of the system for distributing any unused H1B numbers.
©MurthyDotCom
What Does this Cap Mean for U.S. Employers / Individuals?
©MurthyDotCom
This is the earliest the cap has ever been reached. In FY2005, the cap was reached on October 1, 2005, the first day of the new fiscal year. This year, it was reached over a month and a half before the start of the FY. Fiscal Year 2007 starts on October 1, 2006. Cases for that fiscal year can be filed six months in advance, that is, starting on or after April 1, 2006. This strict limitation of H1B numbers each year will severely limit the options available to many individuals and many U.S. employers. It may result in further outsourcing of projects by employers who cannot wait more than a year from today for temporary workers to start employment. This could prove to be more detrimental to the U.S. economy in the long run. It is time for our lawmakers to consider other alternatives, like eliminating the H1B cap to allow U.S. businesses to use the services of temporary, skilled workers.
©MurthyDotCom
© 2005 The Law Office of Sheela Murthy, P.C. All Rights Reserved
Copyright : Documents from this site may be printed for personal use as long as the copyright notices are included on the print-outs and the documents are not modified or altered.