Modernizing H-1B Requirements, Providing Flexibility in the F-1 Program, and Program Improvements Affecting Other Nonimmigrant Workers

<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>Modernizing H-1B Requirements, Providing Flexibility in the F-1 Program, and Program Improvements Affecting Other Nonimmigrant Workers</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> U.S. Citizenship and Immigration Services, Department of Homeland Security (DHS). <HD SOURCE="HED">ACTION:</HD> Final rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The U.S. Department of Homeland Security (DHS) is issuing this final rule to modernize and improve the efficiency of the H-1B program, add benefits and flexibilities, and improve integrity measures. These provisions mainly amend the regulations governing H-1B specialty occupation workers, although some of the provisions narrowly impact other nonimmigrant classifications, including: H-2, H-3, F-1, L-1, O, P, Q-1, R-1, E-3, and TN. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> This final rule is effective January 17, 2025. </EFFDATE> <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 of the Regulatory Action</FP> <FP SOURCE="FP1-2">B. Summary of the Major Provisions of the Regulatory Action</FP> <FP SOURCE="FP1-2">1. Clarifying Requirements and Improving Program Efficiencies</FP> <FP SOURCE="FP1-2">2. Providing Greater Benefits and Flexibilities</FP> <FP SOURCE="FP1-2">3. Strengthening Program Integrity</FP> <FP SOURCE="FP1-2">C. Summary of Costs and Benefits</FP> <FP SOURCE="FP1-2">D. Summary of Changes from the Notice of Proposed Rulemaking</FP> <FP SOURCE="FP1-2">1. Specialty Occupation Definition and Criteria</FP> <FP SOURCE="FP1-2">2. Bar on Multiple Registrations Submitted by Related Entities</FP> <FP SOURCE="FP1-2">3. Contracts</FP> <FP SOURCE="FP1-2">4. Non-speculative or Bona Fide Employment</FP> <FP SOURCE="FP1-2">5. Beneficiary-Owners</FP> <FP SOURCE="FP1-2">6. Additional Changes</FP> <FP SOURCE="FP-2">II. Background</FP> <FP SOURCE="FP1-2">A. Legal Authority</FP> <FP SOURCE="FP1-2">B. The H-1B Program</FP> <FP SOURCE="FP1-2">C. The F-1 Program</FP> <FP SOURCE="FP1-2">D. NPRM and Final Rules</FP> <FP SOURCE="FP-2">III. Response to Public Comments on the Proposed Rule</FP> <FP SOURCE="FP1-2">A. Summary of Public Comments on the Proposed Rule</FP> <FP SOURCE="FP1-2">B. DHS/USCIS Statutory and Legal Issues</FP> <FP SOURCE="FP1-2">C. General Comments</FP> <FP SOURCE="FP1-2">1. General Support for the Rule</FP> <FP SOURCE="FP1-2">2. General Opposition to the Rule</FP> <FP SOURCE="FP1-2">3. Other General Comments on the Rule</FP> <FP SOURCE="FP1-2">D. Modernization and Efficiencies</FP> <FP SOURCE="FP1-2">1. General Comments on the Proposed Modernization and Efficiencies Provisions</FP> <FP SOURCE="FP1-2">2. Specialty Occupation Definition and Criteria</FP> <FP SOURCE="FP1-2">i. General comments on the proposed changes to “specialty occupation”</FP> <FP SOURCE="FP1-2">ii. Amending the Definition of “Specialty Occupation”</FP> <FP SOURCE="FP1-2">iii. Amending the Criteria for “Specialty Occupation”</FP> <FP SOURCE="FP1-2">3. Amended Petitions</FP> <FP SOURCE="FP1-2">4. Deference</FP> <FP SOURCE="FP1-2">5. Evidence of Maintenance of Status</FP> <FP SOURCE="FP1-2">6. Eliminating the Itinerary Requirement for H programs</FP> <FP SOURCE="FP1-2">7. Validity Expires Before Adjudication</FP> <FP SOURCE="FP1-2">E. Benefits and Flexibilities</FP> <FP SOURCE="FP1-2">1. H-1B Cap Exemptions</FP> <FP SOURCE="FP1-2">2. Automatic Extension of Authorized Employment Under 8 CFR 214.2(f)(5)(vi) (Cap-Gap)</FP> <FP SOURCE="FP1-2">3. Other Comments on Benefits and Flexibilities</FP> <FP SOURCE="FP1-2">F. Program Integrity</FP> <FP SOURCE="FP1-2">1. Provisions to Ensure Bona Fide Job Offer for a Bona Fide Specialty Occupation Position</FP> <FP SOURCE="FP1-2">i. Contracts</FP> <FP SOURCE="FP1-2">ii. Bona Fide Employment</FP> <FP SOURCE="FP1-2">iii. LCA Properly Corresponds with the Petition</FP> <FP SOURCE="FP1-2">iv. Revising the Definition of U.S. Employer</FP> <FP SOURCE="FP1-2">v. Employer-Employee Relationship</FP> <FP SOURCE="FP1-2">vi. Bona Fide Job Offer</FP> <FP SOURCE="FP1-2">vii. Legal Presence and Amenable to Service of Process</FP> <FP SOURCE="FP1-2">2. Beneficiary-Owners</FP> <FP SOURCE="FP1-2">3. Site Visits</FP> <FP SOURCE="FP1-2"> 4. Third-Party Placement (Codifying Policy Based on <E T="03">Defensor</E> v. <E T="03">Meissner</E> (5th Cir. 2000)) </FP> <FP SOURCE="FP1-2">5. Other Comments on Program Integrity and Alternatives</FP> <FP SOURCE="FP1-2">G. Request for Preliminary Public Input Related to Future Actions/Proposals</FP> <FP SOURCE="FP1-2">1. Use or Lose</FP> <FP SOURCE="FP1-2">2. Beneficiary Notification</FP> <FP SOURCE="FP1-2">H. Other Comments on the Proposed Rule</FP> <FP SOURCE="FP1-2">I. Out of Scope</FP> <FP SOURCE="FP1-2">J. Statutory and Regulatory Requirements</FP> <FP SOURCE="FP1-2">1. Administrative Procedure Act</FP> <FP SOURCE="FP1-2">2. Comments on the Regulatory Impact Analysis (RIA) (E.O. 12866 and E.O. 13563)</FP> <FP SOURCE="FP1-2">K. Severability</FP> <FP SOURCE="FP-2">IV. 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">1. Summary of Changes from NPRM to Final Rule</FP> <FP SOURCE="FP1-2">2. Background</FP> <FP SOURCE="FP1-2">3. Costs, Transfers, and Benefits of the Final Rule</FP> <FP SOURCE="FP1-2">i. Specialty Occupation Definition and Criteria</FP> <FP SOURCE="FP1-2">ii. Amended Petitions</FP> <FP SOURCE="FP1-2">iii. Deference to Prior USCIS Determinations of Eligibility in Requests for Extensions of Petition Validity</FP> <FP SOURCE="FP1-2">iv. Evidence of Maintenance of Status</FP> <FP SOURCE="FP1-2">v. Eliminating the Itinerary Requirement for H Programs</FP> <FP SOURCE="FP1-2">vi. Validity Period Expires Before Adjudication</FP> <FP SOURCE="FP1-2">vii. H-1B Cap Exemptions</FP> <FP SOURCE="FP1-2">viii. Automatic Extension of Authorized Employment “Cap-Gap”</FP> <FP SOURCE="FP1-2">ix. Provisions to Ensure Bona Fide Job Offer for a Specialty Occupation Position</FP> <FP SOURCE="FP1-2">a. Contracts</FP> <FP SOURCE="FP1-2">b. Bona fide Employment</FP> <FP SOURCE="FP1-2">c. LCA Corresponds with the Petition</FP> <FP SOURCE="FP1-2">d. Revising the Definition of U.S. Employer</FP> <FP SOURCE="FP1-2">e. Employer-Employee Relationship</FP> <FP SOURCE="FP1-2">x. Beneficiary-Owners</FP> <FP SOURCE="FP1-2">xi. Site Visits</FP> <FP SOURCE="FP1-2"> xii. Third-Party Placement (Codifying Policy Based on Defensor <E T="03">v. Meissner</E> (5th Cir. 2000)) </FP> <FP SOURCE="FP1-2">4. Alternatives Considered</FP> <FP SOURCE="FP1-2">5. Total Quantified Net Costs of the Final Regulatory Changes</FP> <FP SOURCE="FP1-2">B. Regulatory Flexibility Act</FP> <FP SOURCE="FP1-2">C. Final Regulatory Flexibility Act (FRFA)</FP> <FP SOURCE="FP1-2">1. A statement of the need for, and objectives of, the rule</FP> <FP SOURCE="FP1-2">2. A statement of the significant issues raised by the public comments in response to the IRFA, a statement of the assessment of the agency of such issues, and a statement of any changes made in the proposed rule as a result of such comments</FP> <FP SOURCE="FP1-2">3. The response of the agency to any comments filed by the Chief Counsel for Advocacy of the Small Business Administration in response to the proposed rule, and a detailed statement of any change made to the proposed rule in the final rule as a result of the comments</FP> <FP SOURCE="FP1-2">4. A description and an estimate of the number of small entities to which the rule will apply or an explanation of why no such estimate is available</FP> <FP SOURCE="FP1-2">5. A description of the projected reporting, recordkeeping, and other compliance requirements of the rule, including an estimate of the classes of small entities that will be subject to the requirement and the types of professional skills necessary for prepration of the report or record</FP> <FP SOURCE="FP1-2">6. A description of the steps the agency has taken to minimize the significant economic impact on small entities consistent with the stated objectives of applicable statutes, including a statement of the factual, policy, and legal reasons for selecting the alternative adopted in the final rule and why each of the other significant alternatives to the rule considered by the agency was rejected.</FP> <FP SOURCE="FP1-2">D. Unfunded Mandates Reform Act of 1995 (UMRA)</FP> <FP SOURCE="FP1-2">E. Congressional Review Act</FP> <FP SOURCE="FP1-2">F. Executive Order 13132 (Federalism)</FP> <FP SOURCE="FP1-2"> G. Executive Order 12988 (Civil Justice Reform) </FP> <FP SOURCE="FP1-2">H. Executive Order 13175 (Consultation and Coordination with Indian Tribal Governments)</FP> <FP SOURCE="FP1-2">I. National Environmental Policy Act (NEPA)</FP> <FP SOURCE="FP1-2">J. Paperwork Reduction Act</FP> </EXTRACT> <HD SOURCE="HD1">Table of Abbreviations</HD> <EXTRACT> <FP SOURCE="FP-1">AC21—American Competitiveness in the Twenty-first Century Act</FP> <FP SOURCE="FP-1">ACWIA—American Competitiveness and Workforce Improvement Act of 1998</FP> <FP SOURCE="FP-1">BLS—Bureau of Labor Statistics</FP> <FP SOURCE="FP-1">CEQ—Council on Environmental Quality</FP> <FP SOURCE="FP-1">CFR—Code of Federal Regulations</FP> ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 993k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━