• by Santhosh Rao

OVERVIEW
On August 3, 2020, President Trump issued an Executive Order, barring Federal agencies from hiring H-1B and other foreign workers in place of US Citizens or Green Card Holders.

This EO directs the heads of federal agencies to review the performance of federal contracts and subcontracts awarded by the agencies in 2018 and 2019, and to assess any negative impact of contractors’ use of temporary foreign labor or off-shoring practices on opportunities for U.S. workers and to recommend corrective action, if necessary, within 120 days.

The EO also instructs Secretaries of DOL and DHS to take action, within 45 days to protect United States workers from any adverse effects on wages and working conditions caused by the employment of H-1B visa holders at job sites (including third-party job sites). The two Secretaries must also adopt any measures necessary to ensure that federal-contractor companies employing H-1B workers, including secondary employers, abide by a legal requirement that they not give hiring priority to H-1B visa holders.

The EO requires all federal agencies to complete an internal audit and assess whether they are in compliance with a 1976 Federal Law requirement that prohibits foreign citizens from holding jobs in the federal civil service.

WHO MAY BE AFFECTED

1. All H1B workers employed directly or indirectly with a federal agency: The move is expected to make H-1B hiring tough in federal agencies. It could lead to an increase in H-1B investigation (like site visits), Requests For Evidence (RFE), and case denials;
2. Major Silicon Valley Technology Companies may be affected, as most have extensive contracts with the federal government and also obtain workers from staffing and technology firms; and
3. Many federal contractors who employs large numbers of foreign workers.
   The Secretary of the U.S. Department of Labor noted that a direct employer of an H-1B worker must file an attestation that hiring the foreign worker will not adversely affect similarly situated U.S. workers. This EO requires that third parties (Vendors and End-Client) also adhere to H-1B regulations while accepting an H-1B worker at their work site as if they are the employer.

CONCLUSION
Moving forward hiring an H-1B worker for placement at federal agencies is going to be a challenge. This is going to adversely affect IT and Consulting Companies in US who are the employers of these H-1B employees as Federal Government contracts are a huge part of their business. GLF will continue to monitor how this EO will play out as it is implemented. We will keep you updated.

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