I 
114TH CONGRESS 
2D SESSION 
H. R. 5657 
To amend the Immigration and Nationality Act to reform and reduce fraud 
and abuse in certain visa programs for aliens working temporarily in 
the United States, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 7, 2016 
Mr. PASCRELL (for himself and Mr. ROHRABACHER) introduced the following 
bill; which was referred to the Committee on the Judiciary, and in addi-
tion to the Committee on Education and the Workforce, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend the Immigration and Nationality Act to reform 
and reduce fraud and abuse in certain visa programs 
for aliens working temporarily in the United States, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘H–1B and L–1 Visa Reform Act of 2016’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—H–1B VISA FRAUD AND ABUSE PROTECTIONS 
Subtitle A—H–1B Employer Application Requirements 
Sec. 101. Modification of application requirements. 
Sec. 102. New application requirements. 
Sec. 103. Application review requirements. 
Sec. 104. H–1B visa allocation. 
Sec. 105. H–1B workers employed by institutions of higher education. 
Sec. 106. Specialty occupation to require an actual degree. 
Sec. 107. Labor condition application fee. 
Sec. 108. H–1B subpoena authority for the Department of Labor. 
Sec. 109. Limitation on extension of H–1B petition. 
Sec. 110. Elimination of B–1 in lieu of H–1. 
Subtitle B—Investigation and Disposition of Complaints Against H–1B 
Employers 
Sec. 111. General modification of procedures for investigation and disposition. 
Sec. 112. Investigation, working conditions, and penalties. 
Sec. 113. Waiver requirements. 
Sec. 114. Initiation of investigations. 
Sec. 115. Information sharing. 
Sec. 116. Conforming amendment. 
Subtitle C—Other Protections 
Sec. 121. Posting available positions through the Department of Labor. 
Sec. 122. Transparency and report on wage system. 
Sec. 123. Requirements for information for H–1B and L–1 nonimmigrants. 
Sec. 124. Additional Department of Labor employees. 
Sec. 125. Technical correction. 
Sec. 126. Application. 
TITLE II—L–1 VISA FRAUD AND ABUSE PROTECTIONS 
Sec. 201. Prohibition on replacement of United States workers and restricting 
outplacement of L–1 nonimmigrants. 
Sec. 202. L–1 employer petition requirements for employment at new offices. 
Sec. 203. Cooperation with Secretary of State. 
Sec. 204. Investigation and disposition of complaints against L–1 employers. 
Sec. 205. Wage rate and working conditions for L–1 nonimmigrants. 
Sec. 206. Penalties. 
Sec. 207. Prohibition on retaliation against L–1 nonimmigrants. 
Sec. 208. Adjudication by Department of Homeland Security of petitions under 
blanket petition. 
Sec. 209. Reports on employment-based nonimmigrants. 
Sec. 210. Specialized knowledge. 
Sec. 211. Technical amendments. 
Sec. 212. Application. 
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TITLE I—H–1B VISA FRAUD AND 
ABUSE PROTECTIONS 
Subtitle A—H–1B Employer 
Application Requirements 
SEC. 
101. 
MODIFICATION 
OF 
APPLICATION 
REQUIRE-
MENTS. 
(a) GENERAL APPLICATION REQUIREMENTS.—Sec-
tion 212(n)(1)(A) of the Immigration and Nationality Act 
(8 U.S.C. 1182(n)(1)(A)) is amended to read as follows: 
‘‘(A) The employer— 
‘‘(i) is offering and will offer to H–1B non-
immigrants, during the period of authorized 
employment for each H–1B nonimmigrant, 
wages that are determined based on the best in-
formation available at the time the application 
is filed and which are not less than the highest 
of— 
‘‘(I) the locally determined prevailing 
wage level for the occupational classifica-
tion in the area of employment; 
‘‘(II) the median wage for all workers 
in the occupational classification in the 
area of employment; and 
‘‘(III) the median wage for skill level 
2 in the occupational classification found 
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in the most recent Occupational Employ-
ment Statistics survey; and 
‘‘(ii) will provide working conditions for 
such H–1B nonimmigrant that will not ad-
versely affect the working conditions of United 
States workers similarly employed by the em-
ployer or by an employer with which such H– 
1B nonimmigrant is placed pursuant to a waiv-
er under paragraph (2)(E).’’. 
(b) INTERNET
POSTING
REQUIREMENT.—Section 
212(n)(1)(C) of such Act is amended— 
(1) by redesignating clause (ii) as subclause 
(II); 
(2) by striking ‘‘(i) has provided’’ and inserting 
the following: 
‘‘(ii)(I) has provided’’; and 
(3) by inserting before clause (ii), as redesig-
nated by paragraph (2), the following: 
‘‘(i) has posted on the Internet website de-
scribed in paragraph (3), for at least 30 cal-
endar days, a detailed description of each posi-
tion for which a nonimmigrant is sought that 
includes a description of— 
‘‘(I) the wages and other terms and 
conditions of employment; 
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‘‘(II) the minimum education, train-
ing, experience, and other requirements for 
the position; and 
‘‘(III) the process for applying for the 
position; and’’. 
(c) WAGE DETERMINATION INFORMATION.—Section 
212(n)(1)(D) of such Act is amended by inserting ‘‘the 
wage determination methodology used under subpara-
graph (A)(i),’’ after ‘‘shall contain’’. 
(d) APPLICATION OF REQUIREMENTS TO ALL EM-
PLOYERS.— 
(1) NONDISPLACEMENT.—Section 212(n)(1)(E) 
of such Act is amended to read as follows: 
‘‘(E)(i) The employer— 
‘‘(I) will not at any time replace a United 
States worker with one or more H–1B non-
immigrants; and 
‘‘(II) did not displace and will not displace 
a United States worker employed by the em-
ployer within the period beginning 180 days be-
fore and ending 180 days after the date of the 
placement of the nonimmigrant with the em-
ployer. 
‘‘(ii) The 180-day period referred to in clause 
(i) may not include any period of on-site or virtual 
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training of H–1B nonimmigrants by employees of 
the employer.’’. 
(2) RECRUITMENT.—Section 212(n)(1)(G)(i) of 
such Act is amended by striking ‘‘In the case of an 
application described in subparagraph (E)(ii), sub-
ject’’ and inserting ‘‘Subject’’. 
(e) WAIVER REQUIREMENT.—Section 212(n)(1)(F) 
of such Act is amended to read as follows: 
‘‘(F) The employer will not place, outsource, 
lease, or otherwise contract for the services or place-
ment of H–1B nonimmigrants with another em-
ployer, regardless of the physical location where such 
services will be performed, unless the employer of 
the alien has been granted a waiver under paragraph 
(2)(E).’’. 
SEC. 102. NEW APPLICATION REQUIREMENTS. 
Section 212(n)(1) of the Immigration and Nationality 
Act (8 U.S.C. 1182(n)(1)), as amended by section 101, 
is further amended by inserting after subparagraph (G)(ii) 
the following: 
‘‘(H)(i) The employer, or a person or entity act-
ing on the employer’s behalf, has not advertised any 
available position specified in the application in an 
advertisement that states or indicates that— 
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‘‘(I) such position is only available to an 
individual who is or will be an H–1B non-
immigrant; or 
‘‘(II) an individual who is or will be an H– 
1B nonimmigrant shall receive priority or a 
preference in the hiring process for such posi-
tion. 
‘‘(ii) The employer has not primarily recruited 
individuals who are or who will be H–1B non-
immigrants to fill such position. 
‘‘(I) If the employer employs 50 or more em-
ployees in the United States— 
‘‘(i) the sum of the number of such em-
ployees who are H–1B nonimmigrants plus the 
number of such employees who are non-
immigrants described in section 101(a)(15)(L) 
does not exceed 50 percent of the total number 
of employees; and 
‘‘(ii) the employer’s corporate organization 
has not been restructured to evade the limita-
tion under clause (i). 
‘‘(J) If the employer, in such previous period as 
the Secretary shall specify, employed one or more 
H–1B nonimmigrants, the employer will submit to 
the Secretary the Internal Revenue Service Form 
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W–2 Wage and Tax Statements filed by the em-
ployer with respect to the H–1B nonimmigrants for 
such period.’’. 
SEC. 103. APPLICATION REVIEW REQUIREMENTS. 
(a) TECHNICAL AMENDMENT.—Section 212(n)(1) of 
the 
Immigration 
and 
Nationality 
Act 
(8 
U.S.C. 
1182(n)(1)), as amended by sections 101 and 102, is fur-
ther amended, in the undesignated paragraph at the end, 
by striking ‘‘The employer’’ and inserting the following: 
‘‘(K) The employer.’’. 
(b) APPLICATION REVIEW REQUIREMENTS.—Section 
212(n)(1)(K), as designated by subsection (a), is amend-
ed— 
(1) in the fourth sentence, by inserting ‘‘and 
through the Department of Labor’s website, without 
charge.’’ after ‘‘D.C.’’; 
(2) in the fifth sentence, by striking ‘‘only for 
completeness’’ and inserting ‘‘for completeness, indi-
cators of fraud or misrepresentation of material 
fact,’’; 
(3) in the sixth sentence— 
(A) by striking ‘‘or obviously inaccurate’’ 
and inserting ‘‘, presents indicators of fraud or 
misrepresentation of material fact, or is obvi-
ously inaccurate’’; and 
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(B) by striking ‘‘within 7 days of’’ and in-
serting ‘‘not later than 14 days after’’; and 
(4) by adding at the end the following: ‘‘If the 
Secretary of Labor’s review of an application identi-
fies indicators of fraud or misrepresentation of ma-
terial fact, the Secretary may conduct an investiga-
tion and hearing in accordance with paragraph 
(2).’’. 
SEC. 104. H–1B VISA ALLOCATION. 
Section 214(g)(3) of the Immigration and Nationality 
Act (8 U.S.C. 1184(g)(3)), is amended— 
(1) by striking the first sentence and inserting 
the following: 
‘‘(A) Subject to subparagraph (B), aliens who 
are subject to the numerical limitations under para-
graph (1)(A) shall be issued visas, or otherwise pro-
vided nonimmigrant status, in a manner and order 
established by the Secretary by regulation.’’; and 
(2) by adding at the end the following: 
‘‘(B) The Secretary shall consider petitions for 
nonimmigrant 
status 
under 
section 
101(a)(15)(H)(i)(b) in the following order: 
‘‘(i) Petitions for nonimmigrants described 
in section 101(a)(15)(F) who, while physically 
present in the United States, have earned an 
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‘‘(v) Petitions for nonimmigrants described 
in section 101(a)(15)(F) who are graduates of 
a bachelor’s degree program, undertaken while 
physically present in the United States, in a 
field of science, technology, engineering, or 
mathematics from an institution of higher edu-
cation described in clause (i). 
‘‘(vi) Petitions for nonimmigrants de-
scribed in section 101(a)(15)(F) who are grad-
uates of bachelor’s degree programs, under-
taken while physically present in the United 
States, in any other fields from an institution 
of higher education described in clause (i). 
‘‘(vii) Petitions for aliens who will be work-
ing in occupations listed in Group I of the De-
partment of Labor’s Schedule A of occupations 
in which the Secretary of Labor has determined 
there are not sufficient United States workers 
who are able, willing, qualified, and available. 
‘‘(viii) Petitions filed by employers meeting 
the following criteria of good corporate citizen-
ship and compliance with the immigration laws: 
‘‘(I) The employer is in possession 
of— 
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‘‘(aa) a valid E-Verify company 
identification number; or 
‘‘(bb) if the enterprise is using a 
designated agent to perform E-Verify 
queries, a valid E-Verify client com-
pany identification number and docu-
mentation from U.S. Citizenship and 
Immigration Services that the com-
mercial enterprise is a participant in 
good standing in the E-Verify pro-
gram. 
‘‘(II) The employer is not under inves-
tigation by any Federal agency for viola-
tion of the immigration laws or labor laws. 
‘‘(III) A Federal agency has not de-
termined, during the immediately pre-
ceding 5 years, that the employer violated 
the immigration laws or labor laws. 
‘‘(IV) During each of the preceding 3 
fiscal years, at least 90 percent of the peti-
tions filed by the employer under section 
101(a)(15)(H)(i)(b) were approved. 
‘‘(V) The employer has filed, pursuant 
to section 204(a)(1)(F), employment-based 
immigrant petitions, including an approved 
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labor certification application under section 
212(a)(5)(A), for at least 90 percent of 
employees 
imported 
under 
section 
101(a)(15)(H)(i)(b) during the preceding 3 
fiscal years. 
‘‘(ix) Any remaining petitions. 
‘‘(C) In this paragraph the term ‘field of 
science, technology, engineering, or mathematics’ 
means a field included in the Department of Edu-
cation’s Classification of Instructional Programs tax-
onomy within the summary groups of computer and 
information sciences and support services, engineer-
ing, biological and biomedical sciences, mathematics 
and statistics, and physical sciences.’’. 
SEC. 105. H–1B WORKERS EMPLOYED BY INSTITUTIONS OF 
HIGHER EDUCATION. 
Sections 214(g)(5) of the Immigration and Nation-
ality Act (8 U.S.C. 1184(g)(5)) is amended by striking 
‘‘is employed (or has received an offer of employment) at’’ 
at each place such phrase appears and inserting ‘‘is em-
ployed by (or has received an offer of employment from)’’. 
SEC. 106. SPECIALTY OCCUPATION TO REQUIRE AN AC-
TUAL DEGREE. 
Section 214(i) of the Immigration and Nationality 
Act (8 U.S.C. 1184(i)) is amended— 
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(1) in paragraph (1), by amending subpara-
graph (B) to read as follows: 
‘‘(B) attainment of a bachelor’s or higher de-
gree in the specific specialty directly related to the 
occupation as a minimum for entry into the occupa-
tion in the United States.’’; and 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) For purposes of section 101(a)(15)(H)(i)(b), the 
requirements of this paragraph, with respect to a specialty 
occupation, are— 
‘‘(A) full State licensure to practice in the occu-
pation, if such licensure is required to practice in the 
occupation; or 
‘‘(B) if a license is not required to practice in 
the occupation— 
‘‘(i) completion of a United States degree 
described in paragraph (1)(B) for the occupa-
tion; or 
‘‘(ii) completion of a foreign degree equiva-
lent to a United States degree described in 
paragraph (1)(B) for the occupation.’’. 
SEC. 107. LABOR CONDITION APPLICATION FEE. 
Section 212(n) of the Immigration and Nationality 
Act (8 U.S.C. 1182(n)), as amended by sections 101 
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through 103, is further amended by adding at the end the 
following: 
‘‘(6)(A) The Secretary of Labor shall promulgate a 
regulation that requires applicants under this subsection 
to pay a reasonable application processing fee. 
‘‘(B) All of the fees collected under this paragraph 
shall be deposited as offsetting receipts in a separate ac-
count within the general fund of the Treasury, which shall 
be known as the ‘H–1B Administration, Oversight, Inves-
tigation, and Enforcement Account’ and shall remain 
available until expended. The Secretary of the Treasury 
shall refund amounts in such account to the Secretary of 
Labor for salaries and related expenses associated with the 
administration, oversight, investigation, and enforcement 
of the H–1B nonimmigrant visa program.’’. 
SEC. 108. H–1B SUBPOENA AUTHORITY FOR THE DEPART-
MENT OF LABOR. 
Section 212(n)(2) of the Immigration and Nationality 
Act (8 U.S.C. 1182(n)(2)) is amended— 
(1) by redesignating subparagraph (I) as sub-
paragraph (J); and 
(2) by inserting after subparagraph (H) the fol-
lowing: 
‘‘(I) The Secretary of Labor is authorized to take 
such actions, including issuing subpoenas and seeking ap-
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propriate injunctive relief and specific performance of con-
tractual obligations, as may be necessary to ensure em-
ployer compliance with the terms and conditions under 
this subsection. The rights and remedies provided to H– 
1B nonimmigrants under this subsection are in addition 
to any other contractual or statutory rights and remedies 
of such nonimmigrants and are not intended to alter or 
affect such rights and remedies.’’. 
SEC. 109. LIMITATION ON EXTENSION OF H–1B PETITION. 
Section 214(g)(4) of the Immigration and Nationality 
Act (8 U.S.C. 1184(g)(4)) is amended to read as follows: 
‘‘(4)(A) Except as provided in subparagraph (B), the 
period of authorized admission as a nonimmigrant de-
scribed in section 101(a)(15)(H)(i)(b) may not exceed 3 
years. 
‘‘(B) The period of authorized admission as a non-
immigrant described in subparagraph (A) who is the bene-
ficiary of an approved employment-based immigrant peti-
tion under section 204(a)(1)(F) may be authorized for a 
period of up to 3 additional years if the total period of 
stay does not exceed 6 years, except for an extension under 
section 104(c) or 106(b) of the American Competitiveness 
in the Twenty-First Century Act of 2000 (8 U.S.C. 1184 
note).’’. 
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SEC. 110. ELIMINATION OF B–1 IN LIEU OF H–1. 
Section 214(g) of the Immigration and Nationality 
Act (8 U.S.C. 1184(g)) is amended by adding at the end 
the following: 
‘‘(12) Unless otherwise authorized by law, an alien 
normally classifiable under section 101(a)(15)(H)(i) who 
seeks admission to the United States to provide services 
in a specialty occupation described in paragraph (1) or 
(3) of subsection (i) may not be issued a visa or admitted 
under section 101(a)(15)(B) for such purpose. Nothing in 
this paragraph may be construed to authorize the admis-
sion of an alien under section 101(a)(15)(B) who is com-
ing to the United States for the purpose of performing 
skilled or unskilled labor if such admission is not otherwise 
authorized by law.’’. 
Subtitle B—Investigation and Dis-
position of Complaints Against 
H–1B Employers 
SEC. 111. GENERAL MODIFICATION OF PROCEDURES FOR 
INVESTIGATION AND DISPOSITION. 
Section 212(n)(2)(A) of the Immigration and Nation-
ality Act (8 U.S.C. 1182(n)(2)(A)) is amended— 
(1) by striking ‘‘(A) Subject’’ and inserting the 
following: 
‘‘(A)(i) Subject’’; 
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(2) by striking ‘‘12 months’’ and inserting ‘‘2 
years’’; 
(3) by striking the last sentence; and 
(4) by adding at the end the following: 
‘‘(ii)(I) Upon the receipt of a complaint under clause 
(i), the Secretary may initiate an investigation to deter-
mine if such failure or misrepresentation has occurred. 
‘‘(II) The Secretary may— 
‘‘(aa) conduct surveys of the degree to which 
employers comply with the requirements under this 
subsection; and 
‘‘(bb) conduct compliance audits of employers 
that employ H–1B nonimmigrants. 
‘‘(III) The Secretary shall— 
‘‘(aa) conduct annual compliance audits of not 
fewer than 1 percent of the employers that employ 
H–1B nonimmigrants during the applicable calendar 
year; 
‘‘(bb) conduct annual compliance audits of each 
employer with more than 100 employees who work 
in the United States if more than 15 percent of such 
employees are H–1B nonimmigrants; and 
‘‘(cc) make available to the public an executive 
summary or report describing the general findings of 
the audits carried out pursuant to this subclause. 
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‘‘(iii) The process for receiving complaints under 
clause (i) shall include a hotline that is accessible 24 hours 
a day, by telephonic and electronic means.’’. 
SEC. 112. INVESTIGATION, WORKING CONDITIONS, AND 
PENALTIES. 
Section 212(n)(2)(C) of the Immigration and Nation-
ality Act (8 U.S.C. 1182(n)(2)(C)) is amended— 
(1) in clause (i)— 
(A) in the matter preceding subclause (I), 
by striking ‘‘a condition of paragraph (1)(B), 
(1)(E), or (1)(F), a substantial failure to meet 
a condition of paragraph (1)(C), (1)(D), or 
(1)(G)(i)(I)’’ and inserting ‘‘a condition under 
subparagraph (A), (B), (C), (D), (E), (F), 
(G)(i), (H), (I), or (J) of paragraph (1)’’; 
(B) in subclause (I)— 
(i) by striking ‘‘$1,000’’ and inserting 
‘‘$5,000’’; and 
(ii) by striking ‘‘and’’ at the end; 
(C) in subclause (II), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(III) an employer that violates paragraph 
(1)(A) shall be liable to the employees harmed by 
such violation for lost wages and benefits.’’; 
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(2) in clause (ii)— 
(A) in subclause (I)— 
(i) by striking ‘‘may’’ and inserting 
‘‘shall’’; and 
(ii) by striking ‘‘$5,000’’ and insert-
ing ‘‘$25,000’’; 
(B) in subclause (II), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(III) an employer that violates paragraph 
(1)(A) shall be liable to the employees harmed by 
such violation for lost wages and benefits.’’; 
(3) in clause (iii)— 
(A) in the matter preceding subclause (I), 
by striking ‘‘displaced a United States worker 
employed by the employer within the period be-
ginning 90 days before and ending 90 days 
after the date of filing of any visa petition sup-
ported by the application’’ and inserting ‘‘dis-
placed or replaced a United States worker in 
violation of subparagraph (E)’’; 
(B) in subclause (I)— 
(i) by striking ‘‘may’’ and inserting 
‘‘shall’’; 
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(ii) by striking ‘‘$35,000’’ and insert-
ing ‘‘$150,000’’; and 
(iii) by striking ‘‘and’’ at the end; 
(C) in subclause (II), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(III) an employer that violates paragraph 
(1)(A) shall be liable to the employees harmed by 
such violation for lost wages and benefits.’’; 
(4) by striking clause (iv) and inserting the fol-
lowing: 
‘‘(iv)(I) An employer that has filed an application 
under this subsection violates this clause by taking, failing 
to take, or threatening to take or fail to take a personnel 
action, or intimidating, threatening, restraining, coercing, 
blacklisting, discharging, or discriminating in any other 
manner against an employee because the employee— 
‘‘(aa) disclosed information that the employee 
reasonably believes evidences a violation of this sub-
section or any rule or regulation pertaining to this 
subsection; or 
‘‘(bb) cooperated or sought to cooperate with 
the requirements under this subsection or any rule 
or regulation pertaining to this subsection. 
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‘‘(II) In this subparagraph, the term ‘employee’ in-
cludes— 
‘‘(aa) a current employee; 
‘‘(bb) a former employee; and 
‘‘(cc) an applicant for employment. 
‘‘(III) An employer that violates this clause shall be 
liable to the employee harmed by such violation for lost 
wages and benefits.’’; and 
(5) in clause (vi)— 
(A) by amending subclause (I) to read as 
follows: 
‘‘(I) It is a violation of this clause for an employer 
that has filed an application under this subsection— 
‘‘(aa) to require an H–1B nonimmigrant to pay 
a penalty or liquidated damages for ceasing employ-
ment with the employer before a date agreed to by 
the nonimmigrant and the employer; or 
‘‘(bb) to fail to offer to an H–1B nonimmi-
grant, during the nonimmigrant’s period of author-
ized employment, on the same basis, and in accord-
ance with the same criteria, as the employer offers 
to United States workers, benefits and eligibility for 
benefits, including— 
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