Fiscal Year 2007 H-1B Cap Reached

June 5, 2006

U.S. Citizenship and Immigration Services (USCIS) announced on June 1, 2006, that it reached the cap on H-1B petitions and will not accept any additional H-1B petitions for the fiscal year starting 10/1/06.  USCIS stated that the last date it accepted H-1B petitions for FY 2007 was May 26, 2006.  Any petitions received by or on May 26, 2006 will be subject to a computer-generated random selection process.  This process will randomly select the exact number of petitions needed to meet the congressionally mandated cap.  After random selection, any remaining H-1B petitions that do not receive a FY 2007 number and are not otherwise exempt will be rejected along with the filing fees.  Petitions received after May 26, 2006, will automatically be rejected.

Now that the FY 2007 H-1B visas are used up, employers seeking to employ individuals in H-1B status will have to wait to petition workers for employment in the next fiscal year.  The earliest date that an employer may file an H-1B petition is April 1, 2007 for a start date of October 1, 2007.

Not all H-1B petitions are subject to the cap.  H-1B extensions, amendments, concurrent H-1B positions, and H-1B transfers from one company to another are not affected by the cap.  Also unaffected are persons exempt from the cap, such as persons seeking employment through institutions of higher education, nonprofit research organizations, and government research organizations.  In addition, there are special provisions for temporary workers from Chile, Singapore, Australia and Canada.

Also note that there are FY 2007 H-1B visas available for individuals who hold a Master's or higher degree from a U.S. university, under the 2004 H-1B Reform Act.  This Reform Act allows for 20,000 H-1Bs that are exempt from the 65,000 quota.  As of 5/31/06, the USCIS web site shows that 6,280 petitions are approved or pending, leaving approximately 13,720 of these visas available for FY 2007.

If you have concerns about the timing and filing of your H-1B petition or are thinking about filing an H-1B petition in the future, please contact us to discuss strategies and alternatives.

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