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Angelo Paparelli Comments on Compliance of Companies that Use Outsourcing Firms

Angelo Paparelli was quoted in Human Resource Executive on August 16 in an article regarding the State Department’s increased rejection rate of H-1B and B-1 visas. According to the article, the shift is part of a government response to a criminal investigation into whether an Indian outsourcing company sought business-traveler (B-1) visas for contract workers instead of H-1B visas. Foreign employees working under the B-1 visa are paid by the outsourcing firm, or its United States subsidiary, at rates consistent in the firm’s country; therefore, the cost for the company hiring the firm is much lower than it would be if it used U.S. nationals. The B-1 visa is intended for foreign workers who come to the U.S. temporarily, such as for business meetings, events, training or contract negotiations.

Angelo advises U.S. companies working with outsourcing firms to include specific provisions in their contracts, such as prohibiting B-1 workers who hold less than a relevant master's degree or who are paid less than $60,000, and insisting that the outsourcing company have a formal immigration compliance program audited by a third party. Non-compliance with U.S. visa regulations should be listed as a condition for contract termination, he adds.

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