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We sincerely hope everyone is staying healthy. We understand that many organizations are adjusting their operations to respond to the challenges of the COVID-19 outbreak and for the protection of employees, including closing office facilities and directing employees to remotely work from home or another location. As a reminder, H-1B and E-3 authorization approved for foreign workers is specific to a number of issues including the employer, wage, work location and job duties.

In general, any location where an H-1B or E-3 employee is performing work should be covered by a U.S. Department of Labor certified Labor Condition Application (“LCA”), which includes posting and notice requirements. H-1B or E-3 employee whose home is within normal commuting distance of the normal place of employment should re-post the existing LCA (even though it does not specifically include their home address as a work location) for 10 consecutive business days to comply with notice and posting requirements, and the posting notices must be placed in the Public Access File when taken down.

Please contact the Foster Garvey Labor, Employment & Immigration team if you have any questions regarding this and other worksite-related obligations of an H-1B or E-3 employer.

national securityBeginning this month, the U.S. government can now block foreigners from taking possession of real estate anywhere in the country when it concludes the deal may threaten U.S. national security. In the past, only foreign investment in U.S. businesses required the parties to consider the risk that the government would object on national security grounds. Now parties entering into a broad array of real estate deals with foreigners affecting land in particular parts of the country will also have to consider these risks, even if they do not involve any investment in a U.S. business.

VisaH-1B cap filing season is fast approaching. U.S. employers who sponsor foreign workers for temporary H-1B work visas should start preparing now for the upcoming new H-1B cap electronic registration commencing this year on March 1, 2020.

What Is The H-1B Cap

The H-1B visa is the standard professional US work visa. There is a quota (or “cap”) each year on the number of new H-1B visas available. Specifically, there are 65,000 H-1B visas available annually with an additional 20,000 for US master’s degree holders. Individuals who have not previously held H-1B status are generally subject to this annual cap. Over the last 5+ years, this cap has been oversubscribed. When this occurs, the US Citizenship & Immigration Service (“USCIS”) opens the filing window for a specific period and accepts electronic registrations for new H-1Bs during that period. Presuming the number of applicants registered during that period exceeds the annual quota, then USCIS plans to run a random lottery to select the applicants who will be eligible for making the H-1B petition filing in the following 90 days.

Since Garvey Schubert Barer’s founding in 1966, China has been a major focus of the firm’s practice. In 1979, Stan Barer and other GSB attorneys developed the legal strategy that led to the resumption of shipping between the U.S. and China after a thirty-year hiatus. The first Chinese ship to arrive in the United States sailed into the Port of Seattle, and the first American-flagged ship to sail to China was owned by a GSB client.

This strong alliance, forged and fostered by GSB, has led to Seattle’s importance in trade relations with China. China is Washington State’s major trade partner: in 2017, Washington State exported $18 billion in goods to China. The University of Washington and Tsinghua University have established a joint cross-disciplinary technological institute. President Xi Jinping visited only two locations in the United States: Seattle and Washington, D.C.

global familyDo you have assets in foreign countries? 

Are you or your spouse from another country?

Do you have a relative in another country moving to the U.S., buying U.S. property, or making a gift to someone in the U.S.? 

Are you a green card holder thinking about moving back your home country? 

If you answer “yes” to any of these questions, you may want to consider the significant challenges that state and federal legal and tax rules could present.  Without a strategy in place, one may face being hit with hefty taxes or complications, which could be minimized with proper estate planning.

While United States businesses were embroiled in trade wars, Japan advanced The Comprehensive and Progressive Agreement for Trans-Pacific Partnership in 2018 without participation from the U.S. (TPP-11). Now, Japan and the European Union are celebrating the new EU-Japan Trade Agreement, which came into effect on February 1, 2019. Under this agreement, the EU and Japan reported that they have now become the largest open trade zone in the world.

On January 30, 2018, the Department of Homeland Security (DHS) issued a final rule revising the random selection process (commonly referred to as the annual “H-1B Lottery”) by which the U.S. Citizenship and Immigration Services (USCIS) selects new H-1B petitions for adjudication under the annual H-1B quota. The rule is effective April 1, 2019, with no major changes to employers for the upcoming FY20 H-1B filing season; however, the rule does impose a new electronic registration requirement starting next year (FY21).

This op-ed was originally published in The Seattle Times on December 26, 2018.

In March 1979, the American-flagged ship Letitia Lykes sailed into Shanghai harbor, where it was festooned with flowers and greeted by diplomats. Seattle attorney Stan Barer developed the legal strategy to break the 30-year freeze on shipping between our nations which had existed since “Red China.” A month later, where did the first Chinese ship arrive in the United States? The Port of Seattle.

In September 2015, President Xi Jinping paid his first visit to the United States as President of China. Besides Washington, D.C., what other city did he visit? Seattle. What’s the closest international airport in the “lower 48” states from Shanghai or Beijing? SeaTac Airport. What major American deep-water port is closest to China? The ports of Seattle and Tacoma.

What other nation will buy more Boeing-made commercial aircraft in 2018 and potentially for the foreseeable future? China. Which U.S. public university has established a joint cross-disciplinary technological institute with Tsinghua University? The University of Washington.

View the Chinese version

On August 13, 2018, the President signed into law new legislation that will impose heightened oversight of investments by Chinese persons in U.S. businesses. The Foreign Investment Risk Review Modernization Act (FIRRMA) provides greater specificity about the types of investments that the Committee on Foreign Investment in the United States (CFIUS), an inter-agency committee of the U.S. government, may review and in turn block due to their potential threats to the national security of the U.S. The new law affects foreign direct investments from any country, but China is one of the countries it is particularly likely to affect.

The Department of Commerce, Bureau of Economic Analysis ("BEA") is currently administering a BE-120 survey, which is an updated version of the BE-120 required in 2011. This time, however, if you are a U.S. person or entity, you must complete the BE-120 survey by June 29, 2018 (for manual filing) and July 30, 2018 (using the BEA's eFile system) if the following applies to you: During fiscal year 2017, you engaged in either (a) the foreign sale or purchase of services or (b) transactions in intellectual property rights ("IP") with foreign persons involving rights to use, rights to reproduce and/or distribute, or outright sales or purchases of IP. You may only have to complete part of the survey or all of it, depending on the volume of your activity. Further, due to rules regarding rounding off dollar volume, activity under $500 is not reported. More details are available below. Deadline extensions are available by written request.

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About Us
Foster Garvey’s International practice group comprises a cross-disciplinary group of attorneys practicing in areas ranging from business transactions, immigration, maritime, government regulatory work, transportation and logistics and estate planning. The group members include bilingual and multicultural attorneys who are well-versed in handling these subject matters in a cross-border context. A number of attorneys have been actively practicing in the international arena since the early 1970s.
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