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On Dec. 8, 2004, President Bush signed the Fiscal Year 2005
Consolidated Appropriations Act (H.R. 4818) into law. This
law encompasses the “H-1B Visa Reform Act of 2004,”
which has a number of implications for H-1B employees and
employers. The two that will significantly affect the university
population are below:
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New $500 anti-fraud fee. This $500 “fraud protection
and detection fee” is required of all employers
who file a petition for a new H-1B worker or for a current
H-1B worker who is transferring from one institution to
another.
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Five percent rule eliminated. In the past, employers
were permitted to pay down to 95 percent of the averaged
prevailing wage for the position in a particular region.
Now, employers will have to pay at least 100 percent of
the prevailing wage in order to
hire the employee.
These new regulations will be effective March 8, 2005. VCU
Immigration Services will update its Web site with the name
of recipient to be marked on the $500 check once that information
is released.
If you have any other questions regarding this regulation,
you can contact Ingrid Mercer, director of Immigration Services,
or follow the following links to the NAFSA Web site:
For information on the Visa Reform Act, click here.
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