INS Announces that
                     H-1B Cap Reached

                   Procedures to Be Implemented
                         for Impacted Cases;
              Relief Provided for Certain Fs and Js

                                June 15, 1999


     INS today published a notice in the Federal Register that announces
that the FY99
     H-1B cap has been reached. In a press release published on Friday, INS
estimated
     that approvable cases with receipt dates of on or before April 9, 1999
should be
     granted H-1B status for FY99. The notice itself provides instructions
on how cases
     affected by the cap will be handled. It further announces that the
Commissioner will
     exercise authority to provide stop gap relief to F and J nonimmigrants
who have
     timely filed H-1B visa petitions, authority which stems from a new
interim rule, also
     published today. Finally, INS today published a proposed rule that
would require the
     Service to accept and adjudicate petitions submitted after the cap is
reached in future
     fiscal years, and to assign approved petitions a work start date
beginning no earlier
     than the first day of the next fiscal year. 

     The notice, interim rule, and proposed rule are available on AILA
InfoNet, and via
     AILA InfoFax (1-800-465-1336) as document 206. 

     FY 1999 Cases. INS will implement the following procedures for the
remainder of
     FY 1999 (through September 30, 1999): 

          Cases Received on or After June 15, 1999. All FY 1999 petitions
for
          first-time employment of H-1B workers that are received on or
after June
          15, 1999 will be returned along with the accompanying fees to
petitioners.
          Petitioners may resubmit their petitions at any time and request
employment
          beginning on or after October 1, 1999, when H-1B visas for FY
2000 become
          available. H-1B petitions requesting first-time employment of
H-1B workers
          beginning on or after October 1, 1999 (FY 2000) will be processed
as
          received by INS and counted against the 115,000 cap for FY 2000. 

          Cases Received Before June 15, 1999. For FY 1999 petitions for
          first-time employment of H-1B workers that are received before
June
          15,1999, INS will adjudicate the petitions and, if approvable,
will grant the
          petitions with a valid start date of October 1, 1999, when H-1B
visas for FY
          2000 become available. 

          How to Withdraw a Petition. Petitioners may choose to withdraw
their
          petitions and forfeit the fees by submitting a written request
containing the
          receipt number of the H-1B petition, the name of the employer,
and the name
          of the individual for whom the petition was filed. The request
should be faxed
          to the Immigration Services Division, Attention: H-1B Withdrawal,
fax (202)
          305-0108. 

          Revocations. The Service will subtract revocations of any H-1B
numbers for
          new employment from the total H-1B cap for the fiscal year in
which the
          petition was approved. The case number will thereafter be sent to
the
          Immigration Services Division and the number recaptured. 

     H-1B Cases Not Affected by the Cap. Please note that INS will continue
to
     process petitions filed for current H-1B workers, such as: extensions
of stay;
     amendments of terms of current employment; change of employers (i.e.,
sequential
     employment situations); and, concurrent employment. 

     New Interim Rule for F and J Visa Holders Caught in the H-1B Cap Gap.
The
     new interim rule accommodates certain foreign students (F visa
category) and
     exchange visitors (J visa category) whose employers file a timely H-1B
petition and
     application for change of status before the cap is reached. 

     The regulation allows such individuals, and their dependent spouses
and children, to
     remain in the United States while waiting for new H-1B visas to become
available on
     October 1, 1999. However, they are not permitted to work or engage in
any other
     activity that would be in violation of their F or J immigration
status. Exchange visitors
     who are subject to the two-year foreign residence requirement are not
covered by
     this regulation.