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Limits on H-1B Hiring By Bailout Recipients Still In Economic Stimulus Bill
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A provision intended to require banks receiving federal bailout funds to give hiring priority to U.S. workers over foreigners with H-1B visas was left in the economic stimulus package when U.S. House and Senate negotiators agreed on a compromise bill this week.

The stimulus bill, once it is approved by the Senate and signed by President Barack Obama, will require firms that take bailout funding to make a good-faith effort to hire U.S. citizens before people who are in the country on H-1B visas.

Opponents of the measure said it is so restrictive that affected financial services firms will likely stop hiring H-1B workers altogether. However, the provision doesn't prevent them from using offshore outsourcing contractors, which typically are heavy users of H-1B visas.

As a result of the conference agreement, Sanders said in a statement today that he expects the H-1B provisions to be adopted along with the rest of the stimulus bill. He added that what may have prompted the negotiators to keep the H-1B restrictions in the bill were all of the ongoing layoffs and other job losses. "With thousands of financial services workers unemployed, it is absurd for banks to claim they can't find qualified American workers," Sanders said.

The proposed restrictions require firms that receive money under the federal Troubled Assets Relief Program (TARP) to comply with hiring rules set for "H-1B dependent" firms — those with more than 15% of their workers on visas. Those rules set a number of strict requirements for hiring H-1B holders, including a need for companies to attest that they actively recruited American workers and are not displacing or replacing U.S. citizens with foreign workers.

While the H-1B hiring restrictions made it into the final version of the stimulus bill, the negotiators dropped a related provision that would have required businesses taking bailout money to use the federal government's E-Verify system to vet the employment status of their workers. Conferees also removed the provision that would have renewed the currently voluntary E-Verify program for an additional five years. E-Verify is currently set to expire in March 2009.



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