Tag Archives: Optional Practical Training

H-1B Visas Are Almost Gone – Then What?

Many employers and foreign nationals hoping to work in America have been happy that the supply of H-1B visas did not evaporate rapidly this fiscal year. That happiness may soon change.

The News Isn’t Good

The news from U.S. Citizenship and Immigration Services (USCIS) is that the supply of new H-1B visas for fiscal year 2012 will soon be a thing of the past. (Find link here.)

Contrary to popular belief there is not one but two caps on H-1B visas. The first cap of 65,000 is available to all foreign nationals who qualify for H-1B status and receive a petition. The second cap is a 20,000 allotment for foreign nationals who attain a masters degree or higher from a U.S. university.

U.S. Citizenship and Immigration Services began accepting applications for H-1Bs on April 1, 2011, even though individuals with approved petitions could not legally begin working in H-1B status until October 1st. Earlier this year, the 20,000 “masters exemption” was exhausted. Now, USCIS reports that as of November 14, 2011, 56,300 petitions that count against the 65,000 cap have been utilized. At the current pace, it is possible the remaining cap will be exhausted by the end of the 2011 calendar year.

The Only Practical Way to Hire

Lost in the debate over H-1B visas is a simple fact – an H-1B is generally the only practical way for an employer to hire a foreign-born professional to work long-term in the United States. Factoring in the initial stage of labor certification, the wait for an employment-based green card can range from a few years to even decades, depending on the category and country of origin. And the waits are longest for Indian nationals because of the per country limit.

Available Options

Without the possibility for a skilled foreign national to obtain a new H-1B petition, the options will grow limited for both employers and potential employees. Hiring by universities and non-profit research institutes are exempt from the H-1B numerical limits, which presents one avenue of employment for a skilled foreign national. Another option is that an employer may decide to hire someone outside the country. After a year, if the individual possesses “specialized knowledge” or is a manager or an executive, it may be possible for that individual to transfer into the United States on an L-1 visa.

Another option for an employer is to hire the individual outside the United States and file a new H-1B petition in April 1, 2012, although the individual could not start working in the U.S. until October 1, 2012 (the beginning of the new fiscal year). In short, there are no good options. The closest to a “good” option is for an international student at a U.S. university to determine if he or she qualifies for Optional Practical Training (OPT), which would allow the student to stay in the United States and obtain training while working for an employer for up to a maximum of 29 months.

The Prospects for Legislation

Realistically, it is unlikely Congress will pass an expansion of the H-1B quota in 2011 or during the first half of 2012. Any legislation passed after that time would not help individuals in the short term who need to be hired in H-1B status to work legally in the United States. A new supply of H-1Bs would become available on October 1, 2012.

It is possible that a small expansion of H-1Bs or an expansion of the 20,000 “masters exemption” could be part of another piece of immigration legislation. Yet it is unlikely an expansion of H-1Bs would pass without at least some legislative debate over whether to include new restrictions on H-1B visas in such a bill. In the meantime, the best bet for employers and potential hires who require an H-1B visa is to get one while supplies last.

What Do Employers Find on U.S. College Campuses?

Policy toward employment-based immigration is often mired in accusations that companies ignore U.S. citizens in the recruitment process. In reality, the issue is not companies hiring foreign nationals instead of Americans. It’s that when companies recruit on college campuses they find a high proportion of students in important disciplines are foreign nationals.

In 2007, U.S. universities awarded about half of master’s degrees and 73 percent of Ph.D.s in electrical engineering to foreign nationals, according to the National Science Foundation. Patents produced by foreign nationals are indicators that international students completing their studies not only make up a large proportion of new potential entrants to the labor market but also end up producing important innovations.

As Tables 1 and 2 show a substantial percentage of fulltime graduate students at U.S. universities in important fields are foreign nationals on student visas. Such visas do not allow an individual to stay and work in the United States long-term. To work for years in the United States an international student generally would need an H-1B visa.

Table 1

Percentage of Foreign Nationals in U.S. Graduate School Programs

in Selected Fields (2006)

Field Percent of Fulltime Graduate Students with Foreign

Student VisasTotal Fulltime Graduate Students with Foreign Student VisasStatistics

60.8%

1,960

Economics (except agricultural)

59.6%

5,966

Computer Sciences

58.4%

16,801

Cardiology

50.0%

16

Physics

45.9%

5,707

Chemistry

40.7%

7,712

Mathematics/Applied Mathematics

39.4%

4,862

Pharmaceutical Sciences

36.8%

1,650

Radiology

31.5%

58

 

Source: National Science Foundation/Division of Science Resources Statistics, Survey of Graduate Students and Postdoctorates in Science and Engineering. Tables 18 and 21 of Graduate Students and Postdoctorates in Science and Engineering: Fall 2006.


                                                                                    Table 2

Percentage of Foreign Nationals in U.S. Engineering Programs (2006)

Field Percent Fulltime Graduate Students with Foreign Student Visas Fulltime Graduate Students with Foreign Student Visas
Petroleum Engineering

83.9%

543

Electrical Engineering

68.2%

18,683

Mining Engineering

56.9%

103

Agricultural Engineering

56.6%

505

Industrial Engineering

56.5%

3,625

Mechanical Engineering

52.4%

6,640

Chemical Engineering

52.1%

3,241

Metall./Matl. Engineering

51.7%

2,390

Engineering Science

48.0%

795

Engineering (other)

44.6%

1,830

Civil Engineering

42.5%

5,554

Aerospace Engineering

39.3%

1,327

Biomedical Engineering

34.4%

1,948

Nuclear Engineering

33.0%

300

ENGINEERING (TOTAL)

54.1% 

47,484 

Source: National Science Foundation/Division of Science Resources Statistics, Survey of Graduate Students and Postdoctorates in Science and Engineering. Tables 18 and 21 of Graduate Students and Postdoctorates in Science and Engineering: Fall 2006.


In computer sciences, statistics and economics, international students made up 58 to 60 percent of the fulltime graduate students on U.S. campuses in 2006. In mathematics (39 percent), chemistry (41 percent) and physics (46 percent) the proportion of international students in graduate programs is also significant. In graduate level engineering programs in the United States, 47,484 of the 87,818 fulltime students (54 percent) were in the U.S. on temporary student visas in 2006.

When an employer recruits at a U.S. college and finds an outstanding international student a company can file for him or her to be on OPT (Optional Practical Training) for 12 months, with the possibility of an extension for an additional 17 months. At some point in that process, the individual could be hired on an H-1B visa, if one is available. If the individual was educated outside the country or OPT is not appropriate or the best option for that person, the employer would generally attempt to hire them directly in H-1B status.

Depending on their size, U.S. employers hire either all U.S. workers or some combination of Americans and foreign nationals. When companies recruit on campuses, they find a high percentage of foreign nationals in key fields. To ignore all these candidates because they were not born in America would concede many talented individuals to competitors. It would be difficult for companies to remain successful with such a policy.