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⇒ Student & Scholar Advising ⇒ Faculty, Staff, & Visitors ⇒ H-1B Employees ⇒ Troubled Assets Relief Program/Employ American Workers Act

Troubled Assets Relief Program/Employ American Workers Act

Several financial institutions (most notably Bank of America) have retracted some job offers to foreign hires because of an amendment added in February to the Troubled Assets Relief Program, the $700-billion bailout bill for the financial sector that was enacted last fall.  The new provision, called the Employ American Workers Act, prevents financial institutions that receive federal bailout money from applying for H-1B status for highly skilled immigrants if they have recently laid off, or plan to lay off, American workers.

The Employ American Workers Act was added to the stimulus bill in February by US Sens. Charles E. Grassley, an Iowa Republican, and Bernard Sanders, an Independent from Vermont.

The banks still aren’t sure exactly how to implement the Employ American provisions because regulations that will spell that out haven’t been issued yet.  As a result, banks that have received bailout money but have not yet retracted job offers are essentially keeping their foreign hires in limbo.

USCIS has stated that EAWA applies to any “hire” taking place on or after February 17, 2009 and before February 17, 2011.  EAWA defines “hire” as an employer permitting a new employee to commence a period of employment; that is, the introduction of a new employee to the employer’s US workforce.  EAWA does not apply to petitions to extend the H-1B status of a current employee with the same employer or a petition seeking to change the status of a current US work-authorized employee to H-1B status with the same employer.

Job Offer for Future H-1B Rescinded

Persons with approved 2010 FY H-1B petitions whose job offer has been rescinded prior to the October 1, 2009 start date should seek legal advice from a qualified immigration attorney.

If currently in F-1 status utilizing OPT cap-gap authorization, this authorization will end 10 days after the H-1B approval is revoked and the student has a 60-day grace period to depart the US, change status or begin a new program (at the same school or by transferring to a new school).  See our OPT page for details.

Departure records, change of status records, begin new program records, etc. should all be retained by the employee in case he/she would be required to prove during a future H-1B application process that although the 2010 FY H-1B petition was approved no time was spent in H-1B status.