Human Capital

Immigration Uncertainty

Employers, especially in technology, are fearful of changes to the foreign worker visa program.
By: | April 7, 2017 • 5 min read

Uncertainty over President Trump’s travel ban and the potential for changes to the H-1B visa program have many companies contemplating the risks to foreign workers.

New proposals could call for some drastic changes to the visa program at a time when many technology companies say there’s already a talent shortage.

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At the same time, critics of the H-1B visa program, which is used for professionals in specialty fields, say some companies are playing the system to replace American workers with less costly foreign staff.

The debate is ongoing although it has heated up with the new administration’s pronouncements, leaving companies that rely on H-1B workers with both uncertainty and risk.

H-1Bs Essential to Secure Talent

Goldman Sachs estimates there are nearly one million H-1B visa holders working in the U.S., accounting for up to 13 percent of the country’s tech workforce. An H-1B visa is an employment-based, non-immigrant visa category for temporary workers.

Employers must apply to U.S. Citizenship and Immigration Services (USCIS) on the worker’s behalf. Most applicants are required to hold at least a bachelor’s degree or equivalent training and must be paid the prevailing wage for the role.

Employers pay filing fees of between $1,570 to  $2,320 per worker for three-year visas that can be extended for up to six years. Of the 85,000 H-1Bs offered annually by the USCIS, 20,000 are reserved for those with a master’s degree or higher.

William Stock, attorney, Klasko Immigration Law Partners

If the USCIS receives more than the number of petitions in the first five business days of the annual filing system, it awards visas on a random lottery system run by computer.

William Stock, an attorney with Klasko Immigration Law Partners in Philadelphia, and president of the American Immigration Lawyers Association, said companies have often used H-1Bs to fill roles in IT infrastructure and software development that they otherwise haven’t been able to fill.

According to Code.org, there are nearly a half-million open computing jobs, yet only 43,000 Americans graduate from college with computer science degrees annually. While many tech jobs can be outsourced overseas, Stock said there’s still a strong need for talent to be onsite in the United States.

Employers Anticipate Change

Companies of all sizes are evaluating the potential for changes in the system, said Matthew Dunn, partner with Kramer Levin Naftalis & Frankel law firm.

While there are some steps President Trump could take on his own, Dunn said, mass changes would likely need to be approved by Congress.

Sen. Chuck Grassley, R-Iowa, and Sen. Dick Durbin, D-Ill., recently announced plans to introduce a bill that would require all employers seeking H-1B visas to demonstrate “good faith efforts” to find American workers first.

It would also do away with a lottery system and require that employers prioritize the top foreign students who studied in the U.S.

Dunn said it could add pressure for companies since they are already challenged with obtaining the workers they need.

“Right now, there are 85,000 H-1B visas available each year and there are over 200,000 applicants so the chance of getting one is less than 50 percent,” said Dunn.

Other proposals would boost salary thresholds for workers and remove loopholes in the existing H-1B regulations that let some work for less money than U.S. counterparts.

While there is generally bipartisan support for a vetting process to ensure U.S. workers are not being replaced by cheap foreign labor, employers are still concerned that reforms could curtail their access to talent.

Dick Burke, CEO, Envoy

In the meantime, Stock said, these employers are seeking “as many H-1Bs as they can this season” before there are changes to the law, and they’re also ensuring their salaries are competitive.

Companies are also eyeing their vendor relationships to assess their dependence on foreign workers and how changes could impact their ability to deliver products or services.

Dick Burke, CEO at Envoy, a company that helps secure work authorizations across the globe, said many employers are seeking to move foreign workers to “higher ground” by securing more durable authorization.

Mexican and Canadian citizens can be moved to a NAFTA Professional (TN) work visa and others can use an L-1 work visa, a class designed to help multinationals move more people around. Burke said other companies are even trying to help employees obtain a green card as a legal permanent resident.

“They’re really trying to take advantage of the opportunities that the immigration process permits and we’re helping our [clients] do that,” said Burke.

Travel Ban “Unpredictable”

While employers anticipate changes in the H-1B program in the coming year, President Trump’s travel ban executive order has been a more pressing issue.

Dunn said it is difficult to contend with the new “unpredictability of rules that government may require them to follow.”

“It was just sprung on companies and business travel was certainly disrupted and then plans for future travel have been put on hold,” said Dunn.

It was just sprung on companies and business travel was certainly disrupted and then plans for future travel have been put on hold. — Matthew Dunn, partner, Kramer Levin Naftalis & Frankel

Companies have been communicating with their “employees of concern” about adjustments and status of the ban, he said. And while some of these companies have been holding town hall-type meetings to lend support to foreign national workers, others have been taking a “wait and see” approach.

Stock said the ban has led to a great deal of uncertainty in the business community as it was “unprecedented in scope” and not tethered to “any realistic risk/benefit analysis.”

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While employers remain at the mercy of federal regulations, Burke said, many are deciding to “become more vocal” with their representatives.

There’s not only concern about changes to immigration in the United States but about how foreign governments could respond with potential retaliation. The perception that the travel ban, now being fought in the courts, focuses on Muslims may cause retribution in the global economy, Burke said.

India is the biggest provider of H-1B workers, making up nearly 70 percent of the foreign workforce.

“There’s big concern for companies with global operations. There’s a fear that if you’re not going to let our people come in, we’re going to make it very difficult for you to transact business in our country,” said Burke. &

Craig Guillot is a writer and photographer, based in New Orleans. He can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession

Pinnacle Entertainment’s VP of enterprise risk management says he’s inspired by Disney’s approach to risk management.
By: | November 1, 2017 • 4 min read

R&I: What was your first job?

Bus boy at a fine dining restaurant.

R&I: How did you come to work in this industry?

I sent a résumé to Harrah’s Entertainment on a whim. It took over 30 hours of interviewing to get that job, but it was well worth it.

R&I: If the world has a modern hero, who is it and why?

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The Chinese citizen (never positively identified) who stood in front of a column of tanks in Tiananmen Square on June 5, 1989. That kind of courage is undeniable, and that image is unforgettable. I hope we can all be that passionate about something at least once in our lives.

R&I: What emerging commercial risk most concerns you?

Cyber risk, but more narrowly, cyber-extortion. I think state sponsored bad actors are getting more and more sophisticated, and the risk is that they find a way to control entire systems.

R&I: What is the riskiest activity you ever engaged in?

Training and breaking horses. When I was in high school, I worked on a lot of farms. I did everything from building fences to putting up hay. It was during this time that I found I had a knack for horses. They would tolerate me getting real close, so it was natural I started working more and more with them.

Eventually, I was putting a saddle on a few and before I knew it I was in that saddle riding a horse that had never been ridden before.

I admit I had some nervous moments, but I was never thrown off. It taught me that developing genuine trust early is very important and is needed by all involved. Nothing of any real value happens without it.

R&I: What about this work do you find the most fulfilling or rewarding?

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Setting very aggressive goals and then meeting and exceeding those goals with a team. Sharing team victories is the ultimate reward.

R&I: What is the most unusual/interesting place you have ever visited?

Disney World. The sheer size of the place is awe inspiring. And everything works like a finely tuned clock.

There is a reason that hospitality companies send their people there to be trained on guest service. Disney World does it better than anyone else.

As a hospitality executive, I always learn something new whenever I am there.

James Cunningham, vice president, enterprise risk management, Pinnacle Entertainment, Inc.

The risks that Disney World faces are very similar to mine — on a much larger scale. They are complex and across the board. From liability for the millions of people they host as their guests each year, to the physical location of the park, to their vendor partnerships; their approach to risk management has been and continues to be innovative and a model that I learn from and I think there are lessons there for everybody.

R&I: What is the risk management community doing right?

We are doing a much better job of getting involved in a meaningful way in our daily operations and demonstrating genuine value to our organizations.

R&I: What could the risk management community be doing a better job of?

Educating and promoting the career with young people.

R&I: What have you accomplished that you are proudest of?

Being able to tell the Pinnacle story. It’s a great one and it wasn’t being told. I believe that the insurance markets now understand who we are and what we stand for.

R&I: Who is your mentor and why?

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John Matthews, who is now retired, formerly with Aon and Caesar’s Palace. John is an exceptional leader who demonstrated the value of putting a top-shelf team together and then letting them do their best work. I model my management style after him.

R&I: What is your favorite book or movie?

I read mostly biographies and autobiographies. I like to read how successful people became successful by overcoming their own obstacles. Jay Leno, Jack Welch, Bill Harrah, etc. I also enjoyed the book and movie “Money Ball.”

R&I: What is your favorite drink?

Ice water when it’s hot, coffee when it’s cold, and an adult beverage when it’s called for.

R&I: What does your family think you do?

In my family, I’m the “Safety Geek.”

R&I:  What’s your favorite restaurant?

Vegas is a world-class restaurant town. No matter what you are hungry for, you can find it here. I have a few favorites that are my “go-to’s,” depending on the mood and who I am with.

If you’re in town, you should try to have at least one meal off the strip. For that, I would suggest you get reservations (you’ll need them) at Herbs and Rye. It’s a great little restaurant that is always lively. The food is tremendous, and the service is always on point. They make hand-crafted cocktails that are amazing.

My favorite Mexican restaurant is Lindo Michoacan. There are three in town, and I prefer the one in Henderson as it has the best view of the valley. For seafood, you can never go wrong with Joe’s in Caesar’s Palace.




Katie Dwyer is an associate editor at Risk & Insurance®. She can be reached at [email protected]