Showing posts with label Options. Show all posts
Showing posts with label Options. Show all posts

Friday, November 30, 2012

Weighing Your Options of Reducing Cost in a Slow Rising Economy With H-1B Employees on Staff

Even though the economy continues to shutter, and while it seems many employers are more confident in hiring, some are continuing to express concerns about their H-1B employees. Many of these employers are feeling the pressures of diminishing revenues combined with increasing overhead costs. Unfortunately, many employers are having to layoff employees in order to keep the business afloat until their industry recovers. While others are trying to keep a lower overhead, but holding on to those valued employees; specifically, after spending thousands of dollars training them.

Many employers are now asking, "can I reduce the hours of my H-1B employees in order to keep them on staff and be in compliance with the law?" Generally, yes, you can do this; however, the employer must first make a couple of changes in their filings with DOL and USCIS.

It is unlawful to change an H-1B employee from full-time to part-time status without continuing to pay that employee the agreed wage stated in the previously-filed and certified Labor Condition Application. Nevertheless, it is legal for an employer to make a change in the number of hours worked by an H-1B employee, after the proper filings have been done.

How is a full-time worker status defined with respect to H-1B employees? The U.S. Department of Labor ("DOL") views full-time employment to be approximately 40 hours per week, but in no case considerably less than 35 hours per week. Making things more difficult for H-1B employers, the DOL views any significant decrease by the employer of its normal weekly full-time hours to be a movement towards part-time H-1B employment.

What can an employer do if it wants to reduce its H-1B employee's hours? According to the DOL, the employer must file and receive a new certified Labor Condition Application showing the position being filled by the H-1B employee is now part-time employment (less than 35 hours). Even if the new Labor Condition Application is certified for a part-time position, the employer must still pay the H-1B employee for at least the number of hours stated upon the 1-129 petition the employer initially filed with U.S. Citizenship and Immigration Services ("USCIS") - unless an amended 1-129 petition is also filed, stating the new employee's lowered number of work hours.

The employer does not have to wait for the amended petition to be approved by USClS, before reducing the work hours. Generally, as long as the amended petition has been filed, such changes can be implemented. With the rise of H-1B audits by DOL in the last two quarters of 2011, this process is taken very seriously by the DOL. The DOL will prosecute claims against an employer that has knowingly filed an LCA containing misrepresentations or that has failed to pay its H-1B nonimmigrant employee the stated wage. Also, the DOL's penalties can be significant to the employer. Initial and negligent violations may include a $1,000.00 fine per violation, as well as payment of back wages. But a willful violation can carry a penalty of up to $35,000.00 as well as other penalties, such as debarment from petitioning of other H-IB visa employees.

Due to the complicated issues involved and prospective exorbitant financial penalties, harsh consequences, and ever changing interpretations, an employer should pay careful attention to both DOL regulations and statutes when dealing with similar situations.

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Business and Investment Options in Latvia for Immigrants

Latvia is definitely developing into a prospective attractive Business and Investment destination. There has been a credible FDI track record to boast of along-with pro-business policy. There is an ever growing list of Options and venues for Immigrants aspiring to shift their establishment and money to this east European country.

Over last decade this Baltic state has witnessed an increasingly fast economic development and progress in various sectors. Authorities have appreciated vital and crucial role played by foreign funds and expertise in advancement of domestic economy.

There are multiple venues at disposal for people willing to invest money and entrepreneurial skills in country. Opportunities include a range of openings in traditional as well as contemporary industrial set-ups.

Most prominent of options this country presents is Information technology. Today this industry presents itself as a predominant sector of economic emancipation of Latvia. This sector is a major contributor to national GDP to extent of 2%. This former USSR state today ranks among top 15 leading IT centers around the globe and offers a well trained and educated work force with multi lingual capabilities. There is thrust to establish micro organizations which employ less than 10 employees. This presents a valid opportunity for migrants with fair amount of financial credentials.

Authorities are also emphasizing on development of this sector through positive and promotional policies such as implementing IT working procedures in governmental and other public establishments.

Renewable and recyclable energy generation sector is another major venue with abundance of possibilities and potential. Today this Baltic state is rated among the best nations in EU with an increasing potential for green and renewable energy generation's capacity a well established infrastructure surely makes this sector a profitable area for business.

Latvian health care is a shrinking sector and in national expenditure ranks among lowest in EU. In turn, this provides an ample Potential for private players an attractive Option for Migrants. As far as trained workforce is concerned there is a presence of well educated medical professionals who could facilitate development of medical tourism in this region.

Traditional industries like chemical, machinery, electronics and metal working have been primary industrial players contributing actively in enhancing productivity of economy. Locational advantages, past innovations and availability of cheap raw material have been properly manifested into modern avatar of industry with a major shift in priorities. These venues have been growing up constantly into major attractions for Foreign Investors and Businessmen. Aided by lowest wages and dedicated and trained labor Latvia's major industrial sectors like these are appropriate venues that can bring in rich returns.

Transport and logistics present diverse Opportunities for Business and Investment. Latvia offers a well developed rail, road, air and sea based logistics infrastructure, which is amplified by geographical location on the east west and north south corridor of Europe.

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