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

After 20 years in the business, Navy Pier’s Director of Risk Management values her relationships in the industry more than ever.
By: | June 1, 2017 • 4 min read

R&I: What was your first job?

Working at Dominick’s Finer Foods bagging groceries. Shortly after I was hired, I was promoted to [cashier] and then to a management position. It taught me great responsibility and it helped me develop the leadership skills I still carry today.

R&I: How did you come to work in risk management?

While working for Hyatt Regency McCormick Place Hotel, one of my responsibilities was to oversee the administration of claims. This led to a business relationship with the director of risk management of the organization who actually owned the property. Ultimately, a position became available in her department and the rest is history.

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

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The risk management community is doing a phenomenal job in professional development and creating great opportunities for risk managers to network. The development of relationships in this industry is vitally important and by providing opportunities for risk managers to come together and speak about their experiences and challenges is what enables many of us to be able to do our jobs even more effectively.

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

Attracting, educating and retaining young talent. There is this preconceived notion that the insurance industry and risk management are boring and there could be nothing further from the truth.

R&I: What’s been the biggest change in the risk management and insurance industry since you’ve been in it?

In my 20 years in the industry, the biggest change in risk management and the insurance industry are the various types of risk we look to insure against. Many risks that exist today were not even on our radar 20 years ago.

Gina Kirchner, director of risk management, Navy Pier Inc.

R&I: What insurance carrier do you have the highest opinion of?

FM Global. They have been our property carrier for a great number of years and in my opinion are the best in the business.

R&I: Are you optimistic about the US economy or pessimistic and why?

I am optimistic that policies will be put in place with the new administration that will be good for the economy and business.

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

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The commercial risks that are of most concern to me are cyber risks, business interruption, and any form of a health epidemic on a global scale. We are dealing with new exposures and new risks that we are truly not ready for.

R&I: Who is your mentor and why?

My mother has played a significant role in shaping my ideals and values. She truly instilled a very strong work ethic in me. However, there are many men and women in business who have mentored me and have had a significant impact on me and my career as well.

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

I am most proud of making the decision a couple of years ago to return to school and obtain my [MBA]. It took a lot of prayer, dedication and determination to accomplish this while still working a full time job, being involved in my church, studying abroad and maintaining a household.

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

“Heaven Is For Real” by Todd Burpo and Lynn Vincent. I loved the book and the movie.

R&I: What’s the best restaurant you’ve ever eaten at?

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A French restaurant in Paris, France named Les Noces de Jeannette Restaurant à Paris. It was the most amazing food and brings back such great memories.

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

Israel. My husband and I just returned a few days ago and spent time in Jerusalem, Nazareth, Jericho and Jordan. It was an absolutely amazing experience. We did everything from riding camels to taking boat rides on the Sea of Galilee to attending concerts sitting on the Temple steps. The trip was absolutely life changing.

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

Many, many years ago … I went parasailing in the Caribbean. I had a great experience and didn’t think about the risk at the time because I was young, single and free. Looking back, I don’t know that I would make the same decision today.

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

I would have to say the relationships and partnerships I have developed with insurance carriers, brokers and other professionals in the industry. To have wonderful working relationships with such a vast array of talented individuals who are so knowledgeable and to have some of those relationships develop into true friendships is very rewarding.

R&I: What do your friends and family think you do?

My friends and family have a general idea that my position involves claims and insurance. However, I don’t think they fully understand the magnitude of my responsibilities and the direct impact it has on my organization, which experiences more than 9 million visitors a year.




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