NEWS FLASH:
H-1B "CAP" UPDATE

April 8, 2003

The Bureau of Citizenship and Immigration Services (BCIS, formerly the INS) released a report last week containing statistics on H-1B approvals. During fiscal year 2002, the agency approved a total of 197,537 H-1B petitions, of which 79,100 involved individuals who were subject to the Congressionally-mandated H-1B cap, which in FY 2002 was 195,000.

The H-1B cap for fiscal year 2003 (which ends September 30, 2003) is 195,000. Then, beginning in fiscal year 2004 (which starts on October 1, 2003), the cap drops back to its initial level of 65,000 per year. If the H-1B usage during and after FY 2003 is similar to that in FY 2002, when 79,100 "cap" cases were approved, and if Congress does not increase the cap, employers can expect a "cap gap," i.e., a period of time near the end of each fiscal year when H-1Bs are not available to individuals subject to the cap.

We will continue to monitor the BCIS statistics as they become available, as well as pending legislation affecting H-1Bs. We expect to provide further News Flashes on this subject.

Please note that the H-1B cap does not apply to so-called H-1B "transfers," or to H-1B extensions with the same employer. Also, certain types of employers, including educational institutions and nonprofit research entities, may be exempted from the cap.

Disclaimer and Opt-Out Election:

This News Flash is not intended as legal advice. The facts of a specific case may render the information in this document inapplicable. We provide this News Flash as a courtesy to visitors to our web site for informational purposes only. If you have questions about the applicability of this information to a specific legal matter, you should seek legal advice specific to your situation.