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Loan proceeds qualify as cash for EB-5 investment

D.C. Circuit Court ruled that loan proceeds qualify as cash under the EB-5 Program. Under a contrary interpretation, USCIS treats the investment as indebtedness rather than cash subject to additional requirements. Specifically, a loan may qualify as capital for EB-5 investment only if they are secured by assets owned by the investor. The court rejected such collateralization interpretation.

Please note that this article does not constitute a legal advice.  We simplified the law to outline only one aspect of the latest development of EB-5 green card process. If you would like to obtain an investment (EB-5) green card, call our experienced EB-5 green card attorney at 480-425-2009 or schedule your consultation online.

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New proposed H-1B “wage-based” selection process

The Department of Homeland Security (DHS) proposes to
change the process of selecting H-1B registrations for filing of H-1B cap-subject petitions from a random lottery selection to a wage-level-based selection process.

If more registrations were received during the annual
initial registration period than necessary to reach the
cap, USCIS would rank and select the registrations received generally on the basis of the highest OES wage level in the area of intended employment, beginning with OES wage level IV and proceeding in descending order with OES wage levels III, II, and I

These proposed changes would incentivize petitioners to offer higher wages
to H-1B workers or petition for positions requiring higher skills By changing the selection process, DHS would increase the chance
of selection for registrations or petitions seeking to employ beneficiaries at wages that would equal or exceed the level IV or level III prevailing wage. The DHS data shows that only 28.53% of H-1B petitions received in FYs 2018 and 2019 were filed for level IV and III wages.

The 30-day comments period starts on November 2, 2020.

Please note that this article does not constitute a legal advice.  We simplified the law to outline the proposed changes to H-1B selection process. If you would like to obtain an H-1B status, call our experienced H-1B attorney at 480-425-2009 or schedule your consultation online.

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How can an undocumented immigrant get legal status in the US?

Some undocumented foreign nationals may be eligible for asylum if they can establish that because of a well-founded fear of persecution on account of race, religion, nationality, membership in a particular social group or political opinion, are unable or unwilling to return to their country of nationality, and are unable or unwilling to avail themselves of the protection of that country.

Foreign nationals in removal proceedings may be eligible for cancellation of removal if (i) they have been physically present in the US for a continuous period of 10 years, (ii) have been persons of good moral character for 10 years, (iii) have not bee convicted of certain offenses, (iv) establish that removal would result in exceptional and extremely unusual hardship to US citizen or legal permanent resident spouse, parent or child and (v) warrant a favorable exercise of discretion.

Persons who: (i) have suffered substantial physical or mental abuse as a result of having been a victim of certain criminal activity (such as murder, rape, kidnapping, domestic violence), (ii) possess credible and reliable information establishing that (s)he has knowledge of details concerning the criminal activity, (iii) have been helpful, are being helpful, or are likely to be helpful in the investigation or prosecution of criminal activity and (iv) criminal activity occurred in the US or violated a US federal law that provided for extraterritorial jurisdiction may qualify for U visa.

Certain persons are allowed to apply of adjustment of status notwithstanding the fact that they entered without inspection, overstayed, or worked without authorization if: they (a) are beneficiaries of a labor certification or visa petition filed on or before January 14, 1998; or (ii) are beneficiaries of a labor certification of visa petition that was filed after January 14, 1998 but on or before April 30, 2001, and were physically present in the US on December 21, 2000.

Undocumented immigrant’s spouse, adult child or parent who are US citizens may petition for their legal permanent resident status.

Temporary protected status (TPS) is a temporary benefit to certain nationals of designated countries due to conditions in the country (such as ongoing armed conflict, an environmental disaster, or an epidemic or other extraordinary and temporary conditions) that temporarily prevent the country’s nationals from returning. Countries currently designated for TPS are El Salvador, Haiti, Honduras, Nepal, Nicaragua, Somalia, Sudan, South Sudan, Syria and Yemen.

Undocumented persons who demonstrate that the (i) they came to the US before reaching 16th birthday, (ii) were physically present in the US on June 15, 2012, (iii) have continuously resided in the US since June 15, 2007, up to the present time, (iv) entered without inspection or were out of status on June 15, 2012, (v) were under the age of 31 on June 15, 2012, (vi) are currently in school, graduated or obtained a certificate of completion from high school, obtained GED certificate or are honorably discharged veterans of the Coast Guard or US Armed Forces may qualify for Deferred Action for Childhood Arrivals (DACA).

Please note that this article does not constitute a legal advice.  We simplified the law to outline some of the options to consider for undocumented immigrants to get legal status in the US. If you would like to obtain legal status in the US, call our experienced immigration attorney at 480-425-2009 or schedule your consultation online.

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What are the new H-1B rules?

On December 7, 2020, changes to the H-1B nonimmigrant visa regulations will take effect. The proposed regulations amend the definition of a “specialty occupation” to indicate that there must be a “direct” relationship between the required degree field(s) and the duties of the position. Instead of demonstrating that a bachelors’ degree is “normally”, “commonly” or “usually” required; the bachelor’s degree in a specific specialty or its equivalent needs to be “always” required.

The regulations defines the term “employer-employee relationship”. In addition to considering whether employer has “the right to control” the employee’s work USCIS will also look at whether the employer actually exercises that right to control. The regulations set a 1-year maximum validity period for all H-1B petitions in which the beneficiary will be working at a third-party worksite.

Please note that this article does not constitute a legal advice.  We simplified the law to outline only some proposed changes to H-1B regulations. If you would like to obtain an H-1B status, call our experienced H-1B attorney at 480-425-2009 or schedule your consultation online.

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How will new H-1B prevailing wage increase effect H-1B eligibility?

On October 8, 2020, Department of Labor (“DOL”) published an interim final rule changing its method for calculating the prevailing wage rates in the H-1B program. DOL altered the level 1 prevailing wage from the 17th percentile of the OES wage distribution to 45th percentile on the false
assumption that the wages paid to individuals with a master’s degree represent the entry level wages for H-1B workers. Based on that upward adjustment, DOL increased the level 2 prevailing wage rate from 34th to the 62nd percentile, the level 3 prevailing wage from the 50th to the 78th percentile and the level 4 prevailing wage from the 67th percentile to the 95th percentile.

The upward adjustment of prevailing wage rates results in an overnight increase in wage rates and may likely result in many employers not hiring foreign workers. Lawsuits were filed seeking injunction to stop the DOL interim final rule.

Please note that this article does not constitute a legal advice.  We simplified the law to outline only some proposed changes to H-1B rules. If you would like to obtain an H-1B status, call our experienced H-1B attorney at 480-425-2009 or schedule your consultation online.

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The US Supreme court ruling on international arbitration

In this case, the predecessor of Outokumpu Stainless Steel, US subsidiary of Finish stainless steel producer, entered into a contract with an engineering company that called for fabrication and installation of cold rolling mill units. The agreement contained an arbitration clause. The agreement also contained a list of mandatory subcontractors to be used, including GE Power Conversion France SAS, a French subsidiary of General Electric (GE Energy). The subcontract between the engineering company and GE Energy did not contain an arbitration clause.

The rolling mills manufactured by GE Energy allegedly failed. Outokumpu Stainless sued GE Energy. In its decision, GE Energy Power Conversion France SAS, Corp. v. Outokumpu Stainless USA, LLC, the US Supreme court applying Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (the New York Convention) ruled that the GE Energy may invoke US state contract law principles (particularly, the common-law doctrine of equitable estoppel) to compel Outokumpu to arbitrate an international dispute arising under an agreement containing an an arbitration clause where Outokumpu must rely on the terms of that agreement in asserting claims against GE Energy.

Please note that this article does not constitute a legal advice.  We simplified the law to outline the US Supreme court ruling on international arbitration. If you have an international dispute and would like to consider international arbitration, call our international attorney at 480-425-2009 or schedule your consultation online.

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How to qualify for treaty trader (E-1) visa?

Two Mexican citizens established a US company to import fresh produce from Mexico and sell it in the U.S. and Canada. Each member held 50% interest in the US company. Each member invested “substantial” amount of capital and put it “at risk”. The company rented office space and and warehouse, obtained a license for the US Department of Agriculture, a Blue book rating, registered trademark, hired customs broker and incurred marketing and warehouse expenses. The company created job opportunities for US workers – hired a full time sales representative and started interviewing for other positions. During its first season, the company generated very healthy profit and took steps to increase its marketing efforts to increase sales and visibility.

We established that the trade is already in existence, it is “substantial” and principally (more than 50% of total volume of international trade) between the US and Mexico.

Please note that this article does not constitute a legal advice.  We simplified the law to outline one treaty trader (E-1) visa case study. If you would like to obtain a treaty trader (E-1) visa, call our experienced E-1 visa attorney at 480-425-2009 or schedule your consultation online.

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Is US-Canada border still closed for non-essential travel?

The land border between the US and Canada remains closed until October 21, 2020 for “non-essential” travel. The travel restrictions do not apply to travel by air, sea and to freight rail. The “essential travel” includes but is not limited to: (i) U.S. citizens and legal permanent residents, (ii) international students, (iii) people traveling to receive medical treatment, (iv) emergency responders and public health officials, (v) truck drivers moving cargo or other individuals engaged in international trade, (vi) official government and diplomatic travel, and (vii) members of the U.S. armed forces and their spouses and children.

Most U.S. ports of entry interpret the restrictions that only B1/B2 travel is prohibited, while other ports of entry interpret the restrictions more narrowly and require proof of “essentiality”. The Customs and Border Protection is still performing routine adjudications of TN and L-1 petitions at the land ports of entry, although some land ports are requiring proof that the proposed employment is “essential”.

Canada’s Quarantine Act requires anyone who is permitted to enter Canada to self-isolate for 14 days following entry to Canada (unless they are flag-poling).

Please note that this article does not constitute legal advice.  We simplified the law to outline the law. If you to schedule a consultation, call our experienced immigration attorney at 480-425-2009 or schedule your consultation online.

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May investments in multiple businesses be combined for EB-5 green card?

Investors sometime want to invest in multiple business. Some businesses may not need 10 new full time jobs. We often hear a question whether the $1,800,000 investment (or $900,000 in targeted employment areas) may be diversified across a portfolio of businesses. For example, a client wanted to invest in two restaurant franchises ($800,000 in one restaurant and one million in the second restaurant).

An investor my invest in several business, but only if the minimum investment amount is first placed in a single new commercial enterprise. An investor may invest in one enterprise that diversifies and puts $800,000 towards one business it wholly owns and $1,000,000 towards another business it wholly owns.

Please note that this article does not constitute a legal advice.  We simplified the law to outline only one aspect of the EB-5 green card process. If you would like to obtain an investment (EB-5) green card, call our experienced EB-5 green card attorney at 480-425-2009 or schedule your consultation online.

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Does a position shared by several employees count as one full-time job for EB-5 job creation?

In order to get an EB-5 green card through investment, the investor has to create at least 10 full-time jobs. A client wanted to invest in a restaurant where several employees would share some positions. Does that qualify?

To be considered a full-time job, it requires 35 hours a week. Where two or more employees share a full-time position it counts as one-full time job if they combine at least 35 hours per week. To demonstrate a full-time position is shared by more than one employees, the investor may should a written job-sharing agreement, we weekly schedule or evidence of the sharing of the responsibilities or benefits of a permanent full time position. However, two part-time jobs do not count.

Please note that this article does not constitute a legal advice.  We simplified the law to outline only one aspect of the EB-5 green card process. If you would like to obtain an investment (EB-5) green card, call our experienced EB-5 green card attorney at 480-425-2009 or schedule your consultation online.