Adverse Impact of Immigration Bills on Outsourcing

7.8.2014

Butzel Long Client Alert!

When the U.S. Senate passed the Border Security Economic Opportunity and Immigration Modernization Act (S. 744), commonly referred to as the "Immigration Reform Bill" about a year ago in June 2013, many people and companies applauded the Bill's plan for citizenship for millions of illegal immigrants now living in the United States. In addition, on the surface there appear to be some provisions that would help U.S. companies and offshore service providers by increasing the annual cap on H-1B visas from 65,000 to 180,000. That said, regardless of what the U.S. House of Representatives version of the Bill proposes&mdashif it ever moves beyond committee review in the Republican controlled U.S. House of Representatives&mdashthere are a number of provisions in the Senate Bill which would adversely affect the large outsourcing companies that rely heavily on H-1B and L-1 visas and severely disrupt the U.S. companies that rely on them for various services. This alert will provide some insight into these provisions so that U.S. companies can consider adjusting their service provider relationships or working towards more favorable legislation before any final bill is enacted into law.

The Immigration Reform Bill being considered by Congress provides a path for immigrants residing in the US to obtain citizenship. There are, however, many other provisions in the Bill that will positively and adversely affect a company's use of foreign workers who hold H-1B or L-1 visas. The attached client alert will provide insight into the various provisions so you and your company can plan and take action accordingly.

To read the complete alert, please click the link under "Related Files."

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