H-1B and L-1 Visas Stimulate the Economy

Date: Monday, July 21, 2003 1:37 PM

JOB DESTRUCTION NEWSLETTER

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Two new pro-visa articles were planted in newspapers by lawyers that
work for the Weston immigration law firm of Hackley and Serrone.

The first article asks a question that I know many people have been
wondering lately: "Why hire someone from abroad when unemployment
levels in the U.S. are rising?" The answer is so simple it's surprising
that the author was a lawyer: "H-1B visas are a valuable economic
stimulus and therefore beneficial to society."

For those us us concerned about unemployment levels in the U.S. there
were reassurances that: "checks and balances [are] in place to protect
U.S. workers." Since protections are in place, American workers
shouldn't waste their spare unemployment time worrying about H-1B.

The second article explains how we can break this country out of these
doldrums and stimulate the economy. Again, the answer is pure
simplicity: Bush tax cuts will do the trick but the other essential
"tools to use" are L-1 non-immigrant visas so that multinational
companies can bring staff into the United States.

http://www.sun-sentinel.com/news/opinion/sfl-26forum21jul21,0,7015899.story?coll=sfla-news-opinion

Importing niche labor can help

By Summer McDonald

July 21, 2003

There has been an ongoing debate over whether H-1B visas are a
necessary stimulus to the U.S. economy, or whether they should be
discarded altogether.

These visas are for people with a bachelor's degree or work experience
equivalent in a particular field coupled with a job offer in the U.S.
that can be classified as a specialty occupation -- computer analysts,
engineers, financial analysts, scientists or a variety of other
professional arenas.

The H-1B visas have received a great deal of criticism over the years,
especially in times like now -- economic downturn with rising
unemployment rates. On the surface the argument seems logical: Why hire
someone from abroad when unemployment levels in the U.S. are rising?

However, I believe that H-1B visas are a valuable economic stimulus.
The focus must emphasize the term "specialty occupations," and the
intention of the law to provide foreign expertise where there is a
shortage in the U.S.

For those concerned about unemployment levels in the U.S., it should be
reassuring to note the checks and balances in place to protect U.S.
workers in these instances.

Evidence that these measures actually work can be seen in the numbers
of H-1B visas approved over the past few years. As we have moved
further into economic slowdown and unemployment levels have risen
steadily, the number of H-1B visas approved by the immigration
authorities dropped by more than 100,000 in 2002. This shows that H-1B
usage does, in fact, respond to market forces. During the economic boom
of a few years back, H-1B professionals were needed to fill areas of
shortage, notably in the information technology market, but also in a
range of other fields such as education, engineering and architectural,
scientific and medical services. And while the need has been met in
many of these areas in today's market, there are still shortages in
other areas, including expertise in overseas markets and trends.
Bringing expertise from abroad to fill these specialized shortages will
benefit U.S. companies, and therefore U.S. workers. For example, U.S.
companies using H-1B labor may develop new products and expand into new
markets with broader client bases.

>From that vantage point, it is not unreasonable to conclude that H-1B
visas can be an economic stimulus and therefore beneficial to society.
We need to do all we can to provide U.S. companies with all the tools
they need to grow and expand. Giving them access to specialized labor
that may be in short supply in the U.S. is a sure path to eventual
success -- which means we all win!

Summer McDonald is an associate lawyer with the Weston immigration law
firm of Hackley and Serrone and specializes in H-1B visas.

Copyright ) 2003, South Florida Sun-Sentinel

http://southflorida.bizjournals.com/southflorida/stories/2003/05/26/editorial5.html

L-1 visas can boost the economy
Robert A. Serrone
The United States' economy, and indeed the entire global economy, has
been sluggish for some time now. Specifically in the United States, the
war with Iraq created economic uncertainty and kept businesses too
paralyzed to move forward with either investments or hiring staff.

We hope that this will change now that at least the combat portion of
the war is over and President Bush is pushing for the biggest tax cut
he can possibly get through Congress.

However, the fact is jobs are still being lost, major airlines are on
the brink of collapse, the global SARS epidemic is taking its economic
toll and investors are still wary of buying stocks.

Experts say the key to breaking out of these doldrums is to stimulate
the economy. The Bush administration is hoping the proposed tax cuts
will do the trick and boost consumer confidence. And there is a range
of other tools to use for this purpose, among them the use of the L-1
non-immigrant visa category, which supports multinational companies
bringing staff into the United States.

At first glance, bringing foreign workers here may seem to defeat the
object, but closer consideration will show that by bringing staff into
the country these companies will be able to operate their businesses
with persons already familiar with company procedures. This translates
into easier growth and expansion, thus creating the ability to hire
more American staff. In addition, any new residents here will require
all the goods and services common to the community such as housing,
schooling for their children, household goods and equipment, and
clothing. They will need to visit doctors and dentists and other
medical professionals, they will need investment advice and banking
services, they will need cars and vehicle repair services, and the list
goes on. Each one of these transactions, multiplied geometrically will
give the economy a much-needed boost.

The non-immigrant L-visas allow companies operating both in the United
States and abroad to transfer certain classes of employees into the
nation for up to seven years. There are two types of employees who may
be sponsored for an L-1 visa: managers or executives, and specialized
knowledge staff.

The legal definitions covering these classes of employees are strictly
adhered to by the Bureau of Citizenship and Immigration Services
(formerly the Immigration and Naturalization Service). However,
realistically, any senior foreign company management would be eligible.
There are relatively no restrictions on the types of businesses that
may sponsor an L-1 visa; manufacturing, distribution, service and every
type of business in between are eligible.

For example, a major Venezuelan construction firm buys commercial
property in Miami to develop warehouses, thereby enlisting numerous
professional, construction and service entities to perform the work. Or
a European resort invests money in an aviation consulting firm in Fort
Lauderdale and instantly creates four new jobs. The range is incredibly
broad, and the business engaged in by the foreign company does not have
to be related to the type of business conducted by the U.S. company. In
fact, many companies purposely enter into an unrelated business to
diversify their investment capital.

So as we see more layoffs announced and economist predicting further
delays on economic recovery, we need not be fearful of some foreign
workers coming here on L-visas who, for the most part, will boost their
employer companies into creating more jobs for Americans and boost the
economy through their consumer demands. Overall, the US economy, and
therefore its citizens, can benefit from the presence of the L-1
foreign national.

Robert A. Serrone, a partner in the Weston law firm of Hackley &
Serrone, can be reached at (954) 349-4994 or ras@hackleyserrone.com.

) 2003 American City Business Journals Inc.

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Rob Sanchez is board member of NAEA - www.NAEA.US

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