Improving the H-1B Registration Selection Process and Program Integrity

<RULE> DEPARTMENT OF HOMELAND SECURITY <CFR>8 CFR Part 214</CFR> <DEPDOC>[CIS No. 2766-24; DHS Docket No. USCIS-2023-0005]</DEPDOC> <RIN>RIN 1615-AC70</RIN> <SUBJECT>Improving the H-1B Registration Selection Process and Program Integrity</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> U.S. Citizenship and Immigration Services, DHS. <HD SOURCE="HED">ACTION:</HD> Final rulemaking. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The U.S. Department of Homeland Security (DHS) is amending its regulations to implement the proposed beneficiary centric selection process for H-1B registrations, provide start date flexibility for certain H-1B cap-subject petitions, and implement additional integrity measures related to H-1B registration. </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> This final rule is effective March 4, 2024. </DATES> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Charles L. Nimick, Chief, Business and Foreign Workers Division, Office of Policy and Strategy, U.S. Citizenship and Immigration Services, U.S. Department of Homeland Security, 5900 Capital Gateway Drive, Camp Springs, MD 20746; telephone (240) 721-3000. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Table of Contents</HD> <EXTRACT> <FP SOURCE="FP-2">I. Executive Summary</FP> <FP SOURCE="FP1-2">A. Purpose and Summary of the Regulatory Action</FP> <FP SOURCE="FP1-2">B. Summary of Costs and Benefits</FP> <FP SOURCE="FP1-2">C. Summary of Changes From the Notice of Proposed Rulemaking</FP> <FP SOURCE="FP-2">II. Background</FP> <FP SOURCE="FP1-2">A. Legal Authority</FP> <FP SOURCE="FP1-2">B. Background on H-1B Registration</FP> <FP SOURCE="FP1-2">C. The Need for Regulatory Action</FP> <FP SOURCE="FP1-2">D. Final Rule and Implementation</FP> <FP SOURCE="FP-2">III. Public Comments on the Proposed Rule</FP> <FP SOURCE="FP1-2">A. Summary of Public Comments</FP> <FP SOURCE="FP1-2">B. Statutory and Legal Issues Related to Registration and Background</FP> <FP SOURCE="FP1-2">1. DHS/USCIS Legal Authority Related to Registration</FP> <FP SOURCE="FP1-2">2. Background and Data on the Current Registration System</FP> <FP SOURCE="FP1-2">C. Beneficiary Centric Selection</FP> <FP SOURCE="FP1-2">1. General Support</FP> <FP SOURCE="FP1-2">2. General Opposition</FP> <FP SOURCE="FP1-2">3. Identifying Information and Passport Requirement</FP> <FP SOURCE="FP1-2">4. Implementation and Effective Date</FP> <FP SOURCE="FP1-2">5. Other Comments on the Beneficiary Centric Selection Process</FP> <FP SOURCE="FP1-2">D. Start Date Flexibility for Certain H-1B Cap-Subject Petitions</FP> <FP SOURCE="FP1-2">E. Registration Related Integrity Measures</FP> <FP SOURCE="FP1-2">1. Bar on Multiple Registrations Submitted by Related Entities</FP> <FP SOURCE="FP1-2">2. Registrations With False Information or That Are Otherwise Invalid</FP> <FP SOURCE="FP1-2">3. Other Comments and Alternatives to Anti-Fraud Measures Related to Registration</FP> <FP SOURCE="FP1-2">F. Other Comments Related to the Proposed Registration System</FP> <FP SOURCE="FP1-2">1. Electronic Registration v. Paper-Based Filing</FP> <FP SOURCE="FP1-2">2. Comments on Fees Related to Registration</FP> <FP SOURCE="FP1-2">3. Other Comments and Alternatives Related to Registration</FP> <FP SOURCE="FP-2">IV. Severability</FP> <FP SOURCE="FP-2">V. Statutory and Regulatory Requirements</FP> <FP SOURCE="FP1-2">A. Executive Order 12866 (Regulatory Planning and Review) and Executive Order 13563 (Improving Regulation and Regulatory Review)</FP> <FP SOURCE="FP1-2">B. Regulatory Flexibility Act (RFA)</FP> <FP SOURCE="FP1-2">C. Unfunded Mandates Reform Act of 1995 (UMRA)</FP> <FP SOURCE="FP1-2">D. Congressional Review Act</FP> <FP SOURCE="FP1-2">E. Executive Order 13132 (Federalism)</FP> <FP SOURCE="FP1-2">F. Executive Order 12988 (Civil Justice Reform)</FP> <FP SOURCE="FP1-2">G. Executive Order 13175 (Consultation and Coordination With Indian Tribal Governments)</FP> <FP SOURCE="FP1-2">H. National Environmental Policy Act (NEPA)</FP> <FP SOURCE="FP1-2">I. Paperwork Reduction Act (PRA)</FP> </EXTRACT> <HD SOURCE="HD1">Table of Abbreviations</HD> <EXTRACT> <FP SOURCE="FP-2">CFR—Code of Federal Regulations</FP> <FP SOURCE="FP-2">CPI-U—Consumer Price Index for All Urban Consumers</FP> <FP SOURCE="FP-2">DHS—U.S. Department of Homeland Security</FP> <FP SOURCE="FP-2">DOL—U.S. Department of Labor</FP> <FP SOURCE="FP-2">FR—Federal Register</FP> <FP SOURCE="FP-2">FY—Fiscal Year</FP> <FP SOURCE="FP-2">HR—Human Resources</FP> <FP SOURCE="FP-2">HSA—Homeland Security Act of 2002</FP> <FP SOURCE="FP-2">IMMACT 90—Immigration Act of 1990</FP> <FP SOURCE="FP-2">INA—Immigration and Nationality Act</FP> <FP SOURCE="FP-2">LCA—Labor Condition Application</FP> <FP SOURCE="FP-2">NEPA—National Environmental Policy Act</FP> <FP SOURCE="FP-2">NPRM—Notice of Proposed Rulemaking</FP> <FP SOURCE="FP-2">OMB—Office of Management and Budget</FP> <FP SOURCE="FP-2">PRA—Paperwork Reduction Act </FP> <FP SOURCE="FP-2">PRD—Policy Research Division</FP> <FP SOURCE="FP-2">Pub. L.—Public Law</FP> <FP SOURCE="FP-2">RFA—Regulatory Flexibility Act of 1980</FP> <FP SOURCE="FP-2">RIA—Regulatory Impact Analysis</FP> <FP SOURCE="FP-2">Stat.—U.S. Statutes at Large</FP> <FP SOURCE="FP-2">TLC—Temporary Labor Certification</FP> <FP SOURCE="FP-2">UMRA—Unfunded Mandates Reform Act</FP> <FP SOURCE="FP-2">U.S.C.—United States Code</FP> <FP SOURCE="FP-2">USCIS—U.S. Citizenship and Immigration Services</FP> </EXTRACT> <HD SOURCE="HD1">I. Executive Summary</HD> DHS is amending its regulations relating to the H-1B registration selection process. This final rule implements a beneficiary centric selection process for H-1B registrations, start date flexibility for certain H-1B cap-subject petitions, and integrity measures related to H-1B registration. These provisions are being codified at new 8 CFR 214.2(h)(8)(iii)(A), (h)(8)(iii)(D), (h)(8)(iii)(E), (h)(10)(ii), (h)(10)(iii), and (h)(11)(iii)(A). At this time, DHS is not finalizing other provisions of the “Modernizing H-1B Requirements, Providing Flexibility in the F-1 Program, and Program Improvements Affecting Other Nonimmigrant Workers,” Notice of Proposed Rulemaking (NPRM), published in the <E T="04">Federal Register</E> on October 23, 2023 (October 23 NPRM). <HD SOURCE="HD2">A. Purpose and Summary of the Regulatory Action</HD> The purpose of this rulemaking is to improve the H-1B registration selection process. Through this rule, DHS is implementing a beneficiary centric selection process for H-1B registrations. Instead of selecting by registration, U.S. Citizenship and Immigration Services (USCIS) will select registrations by unique beneficiary. Each unique beneficiary who has a registration submitted on their behalf will be entered into the selection process once, regardless of how many registrations are submitted on their behalf. If a beneficiary is selected, each registrant that submitted a registration on that beneficiary's behalf will be notified of the beneficiary's selection and will be eligible to file a petition on that beneficiary's behalf during the applicable petition filing period. <E T="03">See</E> new 8 CFR 214.2(h)(8)(iii)(A)( <E T="03">1</E> ) and ( <E T="03">4</E> ). DHS anticipates that changing to a beneficiary centric selection process for H-1B registrations will reduce the potential for gaming the process to increase chances for selection and help ensure that each beneficiary has the same chance of being selected, regardless of how many registrations are submitted on their behalf. DHS will also provide start date flexibility for certain H-1B cap-subject petitions. DHS is clarifying the requirements regarding the requested employment start date on H-1B cap-subject petitions to permit filing with requested start dates that are after October 1 of the relevant fiscal year, consistent with current USCIS policy, by removing the current regulatory text at 8 CFR 214.2(h)(8)(iii)(A)( <E T="03">4</E> ). Additionally, DHS is implementing integrity measures related to the H-1B registration process, including requiring registrations to include the beneficiary's valid passport information or valid travel document information, and prohibiting a beneficiary from being registered under more than one passport or travel document. <E T="03">See</E> new 8 CFR 214.2(h)(8)(iii)(A)( <E T="03">4</E> ). DHS is also codifying USCIS' ability to deny H-1B petitions or revoke an approved H-1B petition where: there is a change in the beneficiary's identifying information from the identifying information as stated in the registration to the information as stated in the petition; the underlying registration contained a false attestation or was otherwise invalid; the registration fee was invalid; or where the H-1B cap-subject petition was not based on a valid registration. <E T="03">See</E> new 8 CFR 214.2(h)(8)(iii)(A) and (D). In addition, DHS is also further codifying USCIS' authority to deny an H petition where the statements on the petition, H-1B registration, labor condition application (LCA), or temporary labor certification (TLC), as applicable, were inaccurate, fraudulent, or misrepresented a material fact, including if the attestations on the H-1B registration are determined to be false. <E T="03">See</E> new 8 CFR 214.2(h)(10)(ii)-(iii). Finally, DHS is codifying USCIS' ability to revoke an approved H petition where the statements on the petition, H-1B registration, TLC, or the LCA, as applicable, were inaccurate, fraudulent, or misrepresented a material fact, including if the attestations on the H-1B registration are determined to be false. <E T="03">See</E> new 8 CFR 214.2(h)(11)(iii)(A). <HD SOURCE="HD2">B. Summary of Costs and Benefits</HD> The purpose of this rulemaking is to improve the H-1B registration selection process. For the 10-ye ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 274k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━