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Proposed Changes in "Employer-Employee Relationship" in the H-1B Context

Updated: Feb 12

The U.S. Department of Homeland Security (DHS) has released the text of a final rule which will have a bearing on the "employer-employee" relationship in the H-1B context. The important pointers about this rule are:


-The definition of employer-employee relationship will change. -The end-clients would be required to submit petitions to the USCIS for H-1B workers, i.e., under third-party placements (which is majorly the case with consulting firms), the third-party business entity will also be considered an "employer". -As H-1B petitions cannot be filed without LCA, the end-clients/third-party business entities would also be required to file an LCA with the DOL. -The rule is scheduled to go into effect on July 14, 2021.

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