§112.Investigation, working conditions, and penalties
This section increases civil penalties and strengthens enforcement and worker protections relating to employer obligations in labor condition applications (LCAs) for H-1B nonimmigrant workers in specialty occupations. (As background, LCAs require employers to attest, among other things, to paying prevailing wages, providing working conditions comparable to U.S. workers, and nondisplacement of U.S. workers.)
Specifically, the section:
(1) expands "substantial violations" in clause (i) to all LCA conditions under 212(n)(1); raises the civil penalty to $5,000 (from $1,000); requires the Secretary of Homeland Security or State Department (as appropriate) to deny certain petitions or applications under expanded statutory provisions (INA §§101(a)(15)(E)(iii), 101(a)(15)(H)(i)(b1), 204, 214(c), or 214(e)); and adds employer liability to harmed employees for lost wages and benefits if violating 212(n)(1)(A);
(2) in clause (ii), mandates (rather than authorizes) civil penalties of $25,000 (from $5,000 "may"), with similar petition denial and liability provisions;
(3) in clause (iii), revises the U.S. worker displacement trigger; mandates civil penalties of $150,000 (from $35,000 "may"), with similar petition denial and liability provisions;
(4) replaces clause (iv) to prohibit employer retaliation (e.g., discharge, discrimination) against employees (current, former, or applicants) who disclose LCA violations or cooperate in investigations, with liability to harmed employees for lost wages and benefits;
(5) in clause (v), authorizes a 90-day grace period (or until petition expiration) for terminated H-1B workers and dependents due to protected disclosures under clause (iv), during which they accrue no unlawful presence for purposes of departure or new employment-based status; and
(6) in clause (vi), prohibits employers from requiring H-1B workers to pay early termination penalties or denying them benefits (e.g., health insurance, retirement plans, bonuses, stock options) offered to U.S. workers on the same basis; and raises the civil penalty to $5,000 (from $1,000).