Eaton Peabody
News >> Law Updates & Archives >>
<< Back to News
INS publishes H-1B cap update - August 22.02
On August 13, 2002, the INS published an update of the H-1B cap through the first three quarters of fiscal year 2002 (October 2, 2001 to June 30, 2002). Click here for updateBy statute, the number of H-1B petitions which INS may approve in a fiscal year is capped at 195,000.
As of June 30, 2002, 60,500 individuals subject to the fiscal year cap of 195,000 were approved. This represents a decline of approximately 54% from the same period last year. Similarly, petition filings declined by 41% from the same period last year. The substantial decline is a function of current demand, recent exemptions to the cap, and the fact that some H-1B workers who lose jobs find new employers whose petitions on their behalf are not counted against the cap.
This is welcome news for employers who were wondering whether the H-1B cap would be reached in the last two months of this fiscal year; although this was unlikely. Looking forward, the H-1B cap remains at its current level of 195,000 for fiscal year 2003. Congress raised the cap in 2000 due, in part, to lobbying by the high-tech industry (which accounts for over half of the approved H-1B petitions). However, the cap reverts to 65,000 for fiscal year 2004 and the political will to raise it again may not exist. The debate over this issue is already heating up. Accordingly, with the lower cap on the horizon, unless Congress raises it, employers sponsoring H-1B workers should make their plans based on the lower number.
Please contact Matthew S. Raynes, mraynes@eatonpeabody.com, for further information.
This paper is provided as general information, and is not a substitute for legal or other professional advice.
On August 13, 2002, the INS published an update of the H-1B cap through the first three quarters of fiscal year 2002 (October 2, 2001 to June 30, 2002). Click here for updateBy statute, the number of H-1B petitions which INS may approve in a fiscal year is capped at 195,000.
As of June 30, 2002, 60,500 individuals subject to the fiscal year cap of 195,000 were approved. This represents a decline of approximately 54% from the same period last year. Similarly, petition filings declined by 41% from the same period last year. The substantial decline is a function of current demand, recent exemptions to the cap, and the fact that some H-1B workers who lose jobs find new employers whose petitions on their behalf are not counted against the cap.
This is welcome news for employers who were wondering whether the H-1B cap would be reached in the last two months of this fiscal year; although this was unlikely. Looking forward, the H-1B cap remains at its current level of 195,000 for fiscal year 2003. Congress raised the cap in 2000 due, in part, to lobbying by the high-tech industry (which accounts for over half of the approved H-1B petitions). However, the cap reverts to 65,000 for fiscal year 2004 and the political will to raise it again may not exist. The debate over this issue is already heating up. Accordingly, with the lower cap on the horizon, unless Congress raises it, employers sponsoring H-1B workers should make their plans based on the lower number.
Please contact Matthew S. Raynes, mraynes@eatonpeabody.com, for further information.
This paper is provided as general information, and is not a substitute for legal or other professional advice.
<< Back to News