Important Updates
Important Updates
March 16, 2026 | United KingdomUnited Kingdom: Relaxations Under ETA Scheme for British Dual Nationals
March 16, 2026 | GreeceGreece: Significant Immigration Reforms Include Tech and Talent Visa, Liberalizing EU Blue Card
March 16, 2026 | United KingdomLeading Britain's Conversation: One Old Arrest Can Stop You Entering the USA, Even If You Were Never Convicted
March 16, 2026 | 🌐Middle East - The Latest News on Mobility and Travel Considerations
March 16, 2026 | 🌐Minimum Salary Changes Announced
March 16, 2026 | United KingdomUnited Kingdom: Relaxations Under ETA Scheme for British Dual Nationals
March 16, 2026 | GreeceGreece: Significant Immigration Reforms Include Tech and Talent Visa, Liberalizing EU Blue Card
March 16, 2026 | United KingdomLeading Britain's Conversation: One Old Arrest Can Stop You Entering the USA, Even If You Were Never Convicted
March 16, 2026 | 🌐Middle East - The Latest News on Mobility and Travel Considerations
March 16, 2026 | 🌐Minimum Salary Changes Announced
March 16, 2026 | United KingdomUnited Kingdom: Relaxations Under ETA Scheme for British Dual Nationals
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese ImmigrationView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • Vietnamese Immigration
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
  • Insights

Legislative Update: Sens. Hatch and Flake Propose Employment-Based Reforms

January 25, 2018

insight-news-default

Country / Territory

  • United StatesUnited States

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

At a glance

  • The I-Squared Act of 2018 would increase the H-1B cap to a baseline of 85,000 per year and up to 195,000 in years of high demand, with expanded cap exemptions.  In high-demand years, a priority system would be used to allocate cap numbers, with highest priority given to advanced-degree holders.
  • The bill would reform the employment-based immigrant quota system by eliminating the per-country cap on immigrant visas, recapturing unused immigrant visa from prior years, and exempting dependents, holders of U.S. advanced degrees in designated STEM fields, individuals of extraordinary ability, and outstanding professors and researchers from immigrant visa numerical limits.
  • A new program would allow qualifying employers to sponsor foreign professionals for conditional permanent residence using streamlined procedures if they have engaged in U.S. worker recruitment, participate in E-Verify, pay a $10,000 fee per petition and agree to initiate the permanent residence process within one year after the beneficiary is hired.  The program would be capped at 35,000 immigrant visas per year.  
  • Foreign students would no longer be required to maintain a foreign residence, allowing them to pursue permanent residence in F-1 status.

A closer look at the I-Squared Act

Sens. Orrin Hatch and Jeff Flake’s Immigrant Innovation Act of 2018 (I-Squared) seeks improvements to the U.S. high-skilled immigration system, with increased obligations for sponsoring employers.  Key provisions of the bill are briefly reviewed below.  For more information, see Fragomen’s detailed summary:

H-1B cap reforms

  • Higher H-1B quota:  The H-1B cap would be increased to a baseline of 85,000 per year, with a market escalator that would raise the cap to a maximum of 195,000 in years when demand is high.  If the cap were not reached in a fiscal year, it would be reduced in the following year though not below 85,000.
  • Expanded cap exemptions: The bill would retain the cap exemption of 20,000 for U.S. advanced-degree graduates and would introduce a new and unlimited exemption for advanced-degree holders for whom an employment-based green card case is begun within a year after they commence H-1B status.
  • Priority system for cap number allocation:  If the cap were reached in the first five business days of the cap season, a priority system would be used to allocate cap numbers.  Priority would be given to (1) cap-subject U.S. advanced degree holders; (2) beneficiaries holding  doctoral degrees earned outside the United States; and (3) foreign nationals holding U.S. bachelor’s degrees in designated STEM fields.

New H-1B employer obligations

  • Non-replacement of U.S. workers: H-1B employers would be prohibited from hiring an H-1B worker with the intent of replacing a U.S. worker or compelling a U.S. worker to train his or her H-1B replacement, unless the U.S. worker were being promoted or voluntarily transferring, departing employment or retiring.
  • Unused H-1B petitions:  Employers could be subject to fines and potential debarment for unused or underused H-1B cap approvals. Employers could avoid fines by withdrawing petitions and demonstrating changed circumstances affecting the need for an H-1B worker, but withdrawal would not shield an employer with a high percentage of withdrawals or a high rate of employee resignations within the first three months of petition validity.  Visas unused because of employer withdrawal would be added back to the cap for that fiscal year.
  • H-1B amendments:  H-1B petition amendments would not be required in corporate restructures, successor-in-interest situations or where an H-1B employee changes work locations and the employer obtains a new LCA before the change.
  • Increased H-1B fees:  The H-1B education and training fee would be increased to $4000, from the current $1500 fee (with lower fees for employers with 25 or fewer employees).  In years when the H-1B cap is increased due to high demand, the fee would increase by $1000-4000.  Fees would fund STEM training and education for U.S. workers and students.

H-1B spousal employment

  • Expanded work authorization eligibility:  H-4 spouses would be eligible for work authorization if the H-1B principal has a pending or approved labor certification or I-140 immigrant worker petition.
  • Wage requirements:  Employers would be required to pay H-4 spouses the higher of the actual or prevailing wage for the occupation.

H-1B dependency

  • Higher thresholds for dependency exemptions:  Recruitment and non-displacement obligations would not apply if: (1) the employer pays the H-1B beneficiary at least $100,000 or 105% of the mean wage for the occupation, whichever is higher; or (2) the H-1B beneficiary has a U.S. doctoral degree in a field related to the intended employment.
  • Exemption from dependency calculation for permanent residence sponsorees:  H-1B employees being sponsored for employment-based residence would not be counted in the H-1B dependency calculation if the employer files I-140 immigrant worker petitions for at least 90% of its labor certification beneficiaries. 

H-1B grace period

  • The bill would codify a 60-day grace period for H-1B employees whose employment is terminated early.

Employment-based permanent residence reforms

  • Elimination of per-country quotas:  Per-country limits on employment-based immigrant visas would be eliminated.
  • Recapture of unused immigrant visas:  To reduce green card backlogs, approximately 200,000 unused immigrant visas from prior years would be made available to employment-based sponsorees.
  • Expanded cap exemptions:  The following foreign nationals would be exempt from the employment-based immigrant visa quota:  (1) EB-1A extraordinary ability foreign nationals; (2) EB-1B outstanding professors and researchers; (3) holders of U.S. advanced degrees in designated STEM fields; and (4) spouses and children of employment-based immigrants.
  • Eased restrictions on I-140 portability:  Beneficiaries of approved I-140 petitions would be eligible to change jobs in the same or a similar occupation after filing an application for adjustment of status, and would no longer be required to wait 180 days after adjustment filing.
  • Adjustment filing prior to immigrant visa availability:  Foreign nationals with an approved I-140 petition would be able to file an application for adjustment of status before an immigrant visa became available, on payment of a $500 fee.
  • New conditional permanent residence program: The bill would allow employers (other than H-1B dependent employers) to sponsor professional workers for conditional permanent residence using streamlined procedures if they agree to pay a fee of $10,000 per petition, participate in E-Verify, meet salary minimums, recruit U.S. workers for positions in the same or a similar occupation as foreign beneficiaries and fulfill other obligations.  Employers would be required to file a labor certification or I-140 petition within the first year of the employee’s conditional residence, and the I-140 would have to be approved by the third year absent a delay in labor certification processing.
  • Dual intent for F-1 students:  The bill would eliminate the foreign residence requirement for foreign students, allowing them to pursue permanent residence in F-1 status.
  • Schedule A study:  The bill would direct the Department of Labor to study whether to expand the list of occupations exempt from labor certification under Schedule A.

Prevailing wages

  • Level I wage increase:  The bill would impose a new formula for calculating entry-level prevailing wages for purposes of the PERM and H-1B programs, which could raise wage minimums.
  • Private wage surveys:  The bill would codify the acceptance of private surveys as acceptable wage sources for the H-1B and PERM programs.

Other provisions

  • Deference to prior approvals:  DHS and DOS would be required to give deference to prior approvals of H-1B and L-1 petitions, visa applications and applications for admission except in cases of material error in the prior approval, a change in status rendering the beneficiary ineligible for the status, or new information that adversely affects the eligibility of the employer or beneficiary.
  • Employer precertification:  To reduce duplicative submission of corporate and employment documentation, the bill would require DHS to establish a precertification process for employers who file multiple foreign worker petitions.

Prospects for passage

The I-Squared Act is being introduced as Congress is poised to renew immigration reform discussions.  Though the bill is expected to garner bipartisan support, legislative relief for DACA beneficiaries and White House demands for tougher border security measures are likely to dominate the debate, making prospects for high-skilled reform uncertain.  Nevertheless, the bill is likely to serve as a benchmark for future reform proposals.

This alert is for informational purposes only. If you have any questions, please contact the immigration professional with whom you work at Fragomen.

Country / Territory

  • United StatesUnited States

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Blog post

Costa Rica Retirement Visa: Application and Requirements for Pensionado Residency

Immigration Supervisor Michael Salas Guzman explains the key eligibility requirements, documentation considerations and benefits of Costa Rica’s Pensionado residency program for retirees receiving lifetime pension income from abroad.

Learn more

Media mentions

Leading Britain's Conversation: One Old Arrest Can Stop You Entering the USA, Even If You Were Never Convicted

Senior Manager William Diaz outlines how US authorities evaluate prior criminal records under ESTA and what UK travellers need to know when completing their applications.

Learn more

Awards

Canada Managing Partner Cosmina Morariu Receives FCCCO Women in Leadership Award

Canada Managing Partner Cosmina Morariu has received the France Canada Chamber of Commerce in Ontario (FCCCO) Women in Leadership Award, recognizing her leadership and contributions to the business and legal communities.

Learn more
Generic Insights

Media mentions

Diário Do Turismo: Brasil passa a emitir visto eletrônico para chineses e amplia mobilidade de negócios

Managing Director Diogo Kloper highlights how Brazil’s new electronic visa for Chinese citizens reduces bureaucracy, lowers costs and streamlines business and tourism travel.

Learn more

Blog post

Why Climate Disruptions Are Reshaping Mobility Strategy

Partner, Global Responsible Business Practices, Lisa Koenig, Lead Analyst Dominic Dietrich, Senior Associate Sarah Blackmore and Senior Associate Sonya Berenfeld Cole examine why climate disruptions are reshaping mobility strategy as economic loss, workforce displacement and travel risks require organizations to reassess workforce planning and operational resilience.

Learn more

Media mentions

Construction Management: What Tougher English Rules Mean for Construction Employers

Associate Ilaria Iovieno and Immigration Consultant Sean Pearce explain how the UK’s higher English language requirement for work visas affects construction employers.

Learn more

Visas

FIFA Mexico 2026 World Cup Entry Requirements: Visa and Immigration Guide

Senior Business Immigration Manager Vicente Duque outlines key immigration considerations for international visitors traveling to Mexico for the 2026 FIFA World Cup, including visa eligibility, entry documentation and travel between host countries.

Learn more

Video

A Guide to EU Visa Categories for Non-EU Nationals

Explore EU visa options for non-EU nationals, including Schengen, long-stay and work visas like the EU Blue Card. Find the right visa for your needs.

Learn more

Blog post

Artificial Wage Inflation in Business Immigration: Policy Misalignment and Employer Impact

Counsel Susan Steger examines how wage-driven selection mechanisms in programs such as the H-1B lottery and PERM can create incentives for artificial wage inflation and introduce new compliance and workforce planning challenges for employers.

Learn more

Media mentions

Global Mobility Lawyer: Give to Gain: Strengthening Safety and Legal Pathways for Migrant Women Experiencing Abuse

Director Gemma Hyslop examines how collaboration across the global mobility sector can help strengthen legal pathways and support for migrant women experiencing abuse.

Learn more

Media mentions

Global Mobility Lawyer: Middle East Conflict Puts Multinationals’ Crisis Plans Under the Microscope

Partner Abeer Al Husseini discussed immigration and duty-of-care challenges for employers amid Middle East travel disruptions.

Learn more

Awards

Partner Sarah K. Peterson Recognized as a 2026 Women in Business Honoree by the Minneapolis/St. Paul Business Journal

Partner Sarah K. Peterson is recognized by the Minneapolis/St. Paul Business Journal as a 2026 Women in Business honoree for her professional achievements and contributions to the Twin Cities business community.

Learn more

Blog post

Costa Rica Retirement Visa: Application and Requirements for Pensionado Residency

Immigration Supervisor Michael Salas Guzman explains the key eligibility requirements, documentation considerations and benefits of Costa Rica’s Pensionado residency program for retirees receiving lifetime pension income from abroad.

Learn more

Media mentions

Leading Britain's Conversation: One Old Arrest Can Stop You Entering the USA, Even If You Were Never Convicted

Senior Manager William Diaz outlines how US authorities evaluate prior criminal records under ESTA and what UK travellers need to know when completing their applications.

Learn more

Awards

Canada Managing Partner Cosmina Morariu Receives FCCCO Women in Leadership Award

Canada Managing Partner Cosmina Morariu has received the France Canada Chamber of Commerce in Ontario (FCCCO) Women in Leadership Award, recognizing her leadership and contributions to the business and legal communities.

Learn more
Generic Insights

Media mentions

Diário Do Turismo: Brasil passa a emitir visto eletrônico para chineses e amplia mobilidade de negócios

Managing Director Diogo Kloper highlights how Brazil’s new electronic visa for Chinese citizens reduces bureaucracy, lowers costs and streamlines business and tourism travel.

Learn more

Blog post

Why Climate Disruptions Are Reshaping Mobility Strategy

Partner, Global Responsible Business Practices, Lisa Koenig, Lead Analyst Dominic Dietrich, Senior Associate Sarah Blackmore and Senior Associate Sonya Berenfeld Cole examine why climate disruptions are reshaping mobility strategy as economic loss, workforce displacement and travel risks require organizations to reassess workforce planning and operational resilience.

Learn more

Media mentions

Construction Management: What Tougher English Rules Mean for Construction Employers

Associate Ilaria Iovieno and Immigration Consultant Sean Pearce explain how the UK’s higher English language requirement for work visas affects construction employers.

Learn more

Visas

FIFA Mexico 2026 World Cup Entry Requirements: Visa and Immigration Guide

Senior Business Immigration Manager Vicente Duque outlines key immigration considerations for international visitors traveling to Mexico for the 2026 FIFA World Cup, including visa eligibility, entry documentation and travel between host countries.

Learn more

Video

A Guide to EU Visa Categories for Non-EU Nationals

Explore EU visa options for non-EU nationals, including Schengen, long-stay and work visas like the EU Blue Card. Find the right visa for your needs.

Learn more

Blog post

Artificial Wage Inflation in Business Immigration: Policy Misalignment and Employer Impact

Counsel Susan Steger examines how wage-driven selection mechanisms in programs such as the H-1B lottery and PERM can create incentives for artificial wage inflation and introduce new compliance and workforce planning challenges for employers.

Learn more

Media mentions

Global Mobility Lawyer: Give to Gain: Strengthening Safety and Legal Pathways for Migrant Women Experiencing Abuse

Director Gemma Hyslop examines how collaboration across the global mobility sector can help strengthen legal pathways and support for migrant women experiencing abuse.

Learn more

Media mentions

Global Mobility Lawyer: Middle East Conflict Puts Multinationals’ Crisis Plans Under the Microscope

Partner Abeer Al Husseini discussed immigration and duty-of-care challenges for employers amid Middle East travel disruptions.

Learn more

Awards

Partner Sarah K. Peterson Recognized as a 2026 Women in Business Honoree by the Minneapolis/St. Paul Business Journal

Partner Sarah K. Peterson is recognized by the Minneapolis/St. Paul Business Journal as a 2026 Women in Business honoree for her professional achievements and contributions to the Twin Cities business community.

Learn more

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.