(1) by amending paragraph (1)(A) to read as
follows:
‘‘(A) under section 101(a)(15)(H)(i)(b), subject
to paragraph (5), may not exceed—
‘‘(i) 95,000 in fiscal year 1998;
‘‘(ii) 105,000 in fiscal year 1999; and
‘‘(iii) 115,000 in fiscal year 2000; or’’; and
(2) by adding at the end the following:
‘‘(5) In each of fiscal years 1999 and 2000, the total
number of aliens described in section 212(a)(5)(C) who
may be issued visas or otherwise provided nonimmigrant
status under section 101(a)(15)(H)(i)(b) may not exceed
7,500.’’.
SEC. 3. PROTECTION AGAINST DISPLACEMENT OF UNITED
STATES WORKERS.
(a) IN GENERAL.—Section 212(n)(1) of the Immi-
gration and Nationality Act (8 U.S.C. 1182(n)(1)) is
amended by inserting after subparagraph (D) the follow-
ing:
‘‘(E)(i) The employer has not laid off or other-
wise displaced and will not lay off or otherwise dis-
place, within the period beginning 6 months before
and ending 90 days following the date of filing of
the application or during the 90 days immediately
preceding and following the date of filing of any visa
petition supported by the application, any United
States worker (as defined in paragraph (3)) (includ-
ing a worker whose services are obtained by con-
tract, employee leasing, temporary help agreement,
or other similar means) who has substantially equiv-
alent qualifications and experience in the specialty
occupation, and in the area of employment, for
which H–1B nonimmigrants are sought or in which
they are employed.
‘‘(ii) Except as provided in clause (iii), in the
case of an employer that employs an H–1B non-
immigrant, the employer shall not place the non-
immigrant with another employer where—
‘‘(I) the nonimmigrant performs his or her
duties in whole or in part at one or more work-
sites owned, operated, or controlled by such
other employer; and
‘‘(II) there are indicia of an employment
relationship between the nonimmigrant and
such other employer.
‘‘(iii) Clause (ii) shall not apply to an employ-
er’s placement of an H–1B nonimmigrant with an-
other employer if the other employer has executed
an attestation that it satisfies and will satisfy the
conditions described in clause (i) during the period
described in such clause.’’.
(b) DEFINITIONS.—
(1) IN GENERAL.—Section 212(n) of the Immi-
gration and Nationality Act (8 U.S.C. 1182(n)) is
amended by adding at the end the following:
‘‘(3) For purposes of this subsection:
‘‘(A) The term ‘H–1B nonimmigrant’ means an
alien admitted or provided status as a nonimmigrant
described in section 101(a)(15)(H)(i)(b).
‘‘(B) The term ‘lay off or otherwise displace’,
with respect to an employee—
‘‘(i) means to cause the employee’s loss of
employment, other than through a discharge for
cause, a voluntary departure, or a voluntary re-
tirement; and
‘‘(ii) does not include any situation in
which employment is relocated to a different ge-
ographic area and the employee is offered a
chance to move to the new location, with wages
and benefits that are not less than those at the
old location, but elects not to move to the new
location.
‘‘(C) The term ‘United States worker’ means—
‘‘(i) a citizen or national of the United
States;
‘‘(ii) an alien lawfully admitted for perma-
nent residence; or
‘‘(iii) an alien authorized to be employed
by this Act or by the Attorney General.’’.
(2) 
CONFORMING
AMENDMENTS.—Section
212(n)(1) of the Immigration and Nationality Act (8
U.S.C. 1182(n)(1)) is amended by striking ‘‘a non-
immigrant described in section 101(a)(15)(H)(i)(b)’’
each place such term appears and inserting ‘‘an H–
1B nonimmigrant’’.
SEC. 4. RECRUITMENT OF UNITED STATES WORKERS
PRIOR TO SEEKING NONIMMIGRANT WORK-
ERS.
Section 212(n)(1) of the Immigration and Nationality
Act (8 U.S.C. 1182(n)(1)), as amended by section 3, is
further amended by inserting after subparagraph (E) the
following:
‘‘(F)(i) The employer, prior to filing the appli-
cation, has taken, in good faith, timely and signifi-
cant steps to recruit and retain sufficient United
States workers in the specialty occupation for which
H–1B nonimmigrants are sought. Such steps shall
have included recruitment in the United States,
using procedures that meet industry-wide standards
and offering compensation that is at least as great
as that required to be offered to H–1B non-
immigrants under subparagraph (A), and offering
employment to any qualified United States worker
who applies.
‘‘(ii) The conditions described in clause (i) shall
not apply to an employer with respect to the employ-
ment of an H–1B nonimmigrant who is described in
subparagraph 
(A), 
(B), 
or 
(C) 
of 
section
203(b)(1).’’.
SEC. 5. LIMITATION ON AUTHORITY TO INITIATE COM-
PLAINTS 
AND 
CONDUCT 
INVESTIGATIONS
FOR NON-H–1B-DEPENDENT EMPLOYERS.
(a) IN GENERAL.—Section 212(n)(2)(A) of the Im-
migration and Nationality Act (8 U.S.C. 1182(n)(2)(A))
is amended—
(1) in the second sentence, by striking the pe-
riod at the end and inserting the following: ‘‘, except
that the Secretary may only file such a complaint re-
specting an H–1B-dependent employer (as defined
in paragraph (3)), and only if there appears to be
a violation of an attestation or a misrepresentation
of a material fact in an application.’’; and
(2) by inserting after the second sentence the
following: ‘‘Except as provided in subparagraph (F)
(relating to spot investigations during probationary
period), no investigation or hearing shall be con-
ducted with respect to an employer except in re-
sponse to a complaint filed under the previous sen-
tence.’’.
(b) DEFINITIONS.—Section 212(n)(3) of the Immi-
gration and Nationality Act (8 U.S.C. 1182(n)(2)), as
added by section 3, is amended—
(1) by redesignating subparagraphs (A), (B),
and (C) as subparagraphs (B), (C), and (E), respec-
tively;
(2) by inserting after ‘‘purposes of this sub-
section:’’ the following:
‘‘(A) The term ‘H–1B-dependent employer’
means an employer that—
‘‘(i)(I) has fewer than 21 full-time equiva-
lent employees who are employed in the United
States; and (II) employs 4 or more H–1B non-
immigrants; or
‘‘(ii)(I) has at least 21 but not more than
150 full-time equivalent employees who are em-
ployed in the United States; and (II) employs
H–1B nonimmigrants in a number that is equal
‘‘(E) Under regulations of the Secretary, the previous
provisions of this paragraph shall apply to a failure of an
other employer to comply with an attestation described in
paragraph (1)(E)(iii) in the same manner as they apply
to a failure to comply with a condition described in para-
graph (1)(E)(i).’’.
(c) SPOT INVESTIGATIONS DURING PROBATIONARY
PERIOD.—Section 212(n)(2) of the Immigration and Na-
tionality Act (8 U.S.C. 1182(n)(2)), as amended by sub-
section (b), is further amended by adding at the end the
following:
‘‘(F) The Secretary may, on a case-by-case basis,
subject an employer to random investigations for a period
of up to 5 years, beginning on the date that the employer
is found by the Secretary to have committed a willful fail-
ure to meet a condition of paragraph (1) or to have made
a misrepresentation of material fact in an application. The
preceding sentence shall apply to an employer regardless
of whether the employer is an H–1B-dependent employer
or a non-H–1B-dependent employer. The authority of the
Secretary under this subparagraph shall not be construed
to be subject to, or limited by, the requirements of sub-
paragraph (A).’’.
SEC. 7. EFFECTIVE DATE.
The amendments made by this Act shall take effect
on the date of the enactment of this Act and shall apply
to applications filed with the Secretary of Labor on or
after 30 days after the date of the enactment of this Act,
except that the amendments made by section 2 shall apply
to applications filed with such Secretary before, on, or
after the date of the enactment of this Act.
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