[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 887 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 887

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 SENATE OF THE UNITED STATES

                             April 23, 2009

  Mr. Durbin (for himself and Mr. Grassley) introduced the following 
    bill; which was read twice and referred to the Committee on the 
                               Judiciary

_______________________________________________________________________

                                 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``H-1B and L-1 Visa 
Reform Act of 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
             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.
 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. H-1B government authority and requirements.
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 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 nonimmigrant.
Sec. 206. Penalties.
Sec. 207. Prohibition on retaliation against L-1 nonimmigrants.
Sec. 208. Reports on L-1 nonimmigrants.
Sec. 209. Technical amendments.
Sec. 210. Application.
Sec. 211. Report on L-1 blanket petition process.

             TITLE I--H-1B VISA FRAUD AND ABUSE PROTECTIONS

           Subtitle A--H-1B Employer Application Requirements

SEC. 101. MODIFICATION OF APPLICATION REQUIREMENTS.

    (a) General Application Requirements.--Subparagraph (A) of section 
212(n)(1) of the Immigration and Nationality Act (8 U.S.C. 1182(n)(1)) 
is amended to read as follows:
            ``(A) The employer--
                    ``(i) is offering and will offer to H-1B 
                nonimmigrants, during the period of authorized 
                employment for each H-1B nonimmigrant, wages that are 
                determined based on the best information 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 classification 
                        in the area of employment;
                            ``(II) the median average 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 in the 
                        most recent Occupational Employment Statistics 
                        survey; and
                    ``(ii) will provide working conditions for such H-
                1B nonimmigrant that will not adversely affect the 
                working conditions of other workers similarly 
                employed.''.
    (b) Internet Posting Requirement.--Subparagraph (C) of such section 
212(n)(1) 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 redesignated by 
        paragraph (2) of this subsection, the following:
                    ``(i) has posted on the Internet website described 
                in paragraph (3), for at least 30 calendar days, a 
                detailed description of each position for which a 
                nonimmigrant is sought that includes a description of--
                            ``(I) the wages and other terms and 
                        conditions of employment;
                            ``(II) the minimum education, training, 
                        experience, and other requirements for the 
                        position; and
                            ``(III) the process for applying for the 
                        position; and''.
    (c) Wage Determination Information.--Subparagraph (D) of such 
section 212(n)(1) is amended by inserting ``the wage determination 
methodology used under subparagraph (A)(i),'' after ``shall contain''.
    (d) Application of Requirements to All Employers.--
            (1) Nondisplacement.--Subparagraph (E) of such section 
        212(n)(1) is amended--
                    (A) in clause (i)--
                            (i) by striking ``90 days'' both places it 
                        appears and inserting ``180 days''; and
                            (ii) by striking ``(i) In the case of an 
                        application described in clause (ii), the'' and 
                        inserting ``The''; and
                    (B) by striking clause (ii).
            (2) Recruitment.--Subparagraph (G)(i) of such section 
        212(n)(1) is amended by striking ``In the case of an 
        application described in subparagraph (E)(ii), subject'' and 
        inserting ``Subject''.
    (e) Requirement for Waiver.--Subparagraph (F) of such section 
212(n)(1) is amended to read as follows:
            ``(F) The employer shall not place, outsource, lease, or 
        otherwise contract for the services or placement of H-1B 
        nonimmigrants with another employer 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)) is amended by inserting after clause (ii) of subparagraph 
(G) the following:
            ``(H)(i) The employer has not advertised any available 
        position specified in the application in an advertisement that 
        states or indicates that--
                    ``(I) such position is only available to an 
                individual who is or will be an H-1B nonimmigrant; 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 position.
            ``(ii) The employer has not solely recruited individuals 
        who are or who will be H-1B nonimmigrants to fill such 
        position.
            ``(I) If the employer employs 50 or more employees in the 
        United States, the sum of the number of such employees who are 
        H-1B nonimmigrants plus the number of such employees who are 
        nonimmigrants described in section 101(a)(15)(L) may not exceed 
        50 percent of the total number of employees.
            ``(J) If the employer, in such previous period as the 
        Secretary shall specify, employed 1 or more H-1B nonimmigrants, 
        the employer shall submit to the Secretary the Internal Revenue 
        Service Form W-2 Wage and Tax Statement filed by the employer 
        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 section 102, is 
further amended in the undesignated paragraph at the end, by striking 
``The employer'' and inserting the following:
            ``(K) The employer.''.
    (b) Application Review Requirements.--Subparagraph (K) of such 
section 212(n)(1), as designated by subsection (a), is amended--
            (1) by inserting ``and through the Department of Labor's 
        website, without charge.'' after ``D.C.'';
            (2) by striking ``only for completeness'' and inserting 
        ``for completeness and clear indicators of fraud or 
        misrepresentation of material fact,'';
            (3) by striking ``or obviously inaccurate'' and inserting 
        ``, presents clear indicators of fraud or misrepresentation of 
        material fact, or is obviously inaccurate'';
            (4) by striking ``within 7 days of'' and inserting ``not 
        later than 14 days after''; and
            (5) by adding at the end the following: ``If the 
        Secretary's review of an application identifies clear 
        indicators of fraud or misrepresentation of material fact, the 
        Secretary may conduct an investigation and hearing in 
        accordance with paragraph (2).''.

 Subtitle B--Investigation and Disposition of Complaints Against H-1B 
                               Employers

SEC. 111. GENERAL MODIFICATION OF PROCEDURES FOR INVESTIGATION AND 
              DISPOSITION.

    Subparagraph (A) of section 212(n)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1182(n)(2)) is amended--
            (1) by striking ``(A) Subject'' and inserting ``(A)(i) 
        Subject'';
            (2) by striking ``12 months'' and inserting ``24 months'';
            (3) by striking the last sentence; and
            (4) by adding at the end the following:
                    ``(ii)(I) Upon the receipt of such a complaint, the 
                Secretary may initiate an investigation to determine if 
                such a failure or misrepresentation has occurred.
                    ``(II) The Secretary may conduct surveys of the 
                degree to which employers comply with the requirements 
                of this subsection and may conduct annual compliance 
                audits of employers that employ H-1B nonimmigrants.
                    ``(III) The Secretary shall--
                            ``(aa) conduct annual compliance audits of 
                        not less 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.''.

SEC. 112. INVESTIGATION, WORKING CONDITIONS, AND PENALTIES.

    Subparagraph (C) of section 212(n)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1182(n)(2)) is amended--
            (1) in clause (i)--
                    (A) in the matter preceding subclause (I)--
                            (i) by striking ``a condition of paragraph 
                        (1)(B), (1)(E), or (1)(F)'' and inserting ``a 
                        condition under subparagraph (A), (B), (C)(i), 
                        (E), (F), (G)(i)(I), (H), (I), or (J) of 
                        paragraph (1)''; and
                            (ii) by striking ``(1)(C)'' and inserting 
                        ``(1)(C)(ii)''; and
                    (B) in subclause (I)--
                            (i) by striking ``$1,000'' and inserting 
                        ``$2,000''; and
                            (ii) by striking ``and'' at the end;
                    (C) in subclause (II), by striking the period at 
                the end and inserting a semicolon and ``and'';
                    (D) by adding at the end the following:
            ``(III) an employer that violates such subparagraph (A) 
        shall be liable to the employees harmed by such violations for 
        lost wages and benefits.''; and
            (2) in clause (ii)
                    (A) in subclause (I)--
                            (i) by striking ``may'' and inserting 
                        ``shall''; and
                            (ii) by striking ``$5,000'' and inserting 
                        ``$10,000''; and
                    (B) in subclause (II), by striking the period at 
                the end and inserting a semicolon and ``and'';
                    (C) by adding at the end the following:
            ``(III) an employer that violates such subparagraph (A) 
        shall be liable to the employees harmed by such violations for 
        lost wages and benefits.''; and
            (3) in clause (iii)--
                    (A) in the matter preceding subclause (I), by 
                striking ``90 days'' both places it appears and 
                inserting ``180 days'';
                    (B) in subclause (I)--
                            (i) by striking ``may'' and inserting 
                        ``shall''; and
                            (ii) by striking ``and'' at the end;
                    (C) in subclause (II), by striking the period at 
                the end and inserting a semicolon and ``and''; and
                    (D) by adding at the end the following:
            ``(III) an employer that violates subparagraph (A) of such 
        paragraph shall be liable to the employees harmed by such 
        violations for lost wages and benefits.'';
            (4) in clause (iv)--
                    (A) by inserting ``to take, fail to take, or 
                threaten to take or fail to take, a personnel action, 
                or'' before ``to intimidate'';
                    (B) by inserting ``(I)'' after ``(iv)''; and
                    (C) by adding at the end the following:
            ``(II) An employer that violates this clause shall be 
        liable to the employees 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 who 
        has filed an application under this subsection--
                    ``(aa) to require an H-1B nonimmigrant to pay a 
                penalty for ceasing employment with the employer prior 
                to a date agreed to by the nonimmigrant and the 
                employer (the Secretary shall determine whether a 
                required payment is a penalty, and not liquidated 
                damages, pursuant to relevant State law); and
                    ``(bb) to fail to offer to an H-1B nonimmigrant, 
                during the nonimmigrant's period of authorized 
                employment, on the same basis, and in accordance with 
                the same criteria, as the employer offers to United 
                States workers, benefits and eligibility for benefits, 
                including--
                            ``(AA) the opportunity to participate in 
                        health, life, disability, and other insurance 
                        plans;
                            ``(BB) the opportunity to participate in 
                        retirement and savings plans; and
                            ``(CC) cash bonuses and noncash 
                        compensation, such as stock options (whether or 
                        not based on performance).''; and
                    (B) in subclause (III), by striking ``$1,000'' and 
                inserting ``$2,000''.

SEC. 113. WAIVER REQUIREMENTS.

    (a) In General.--Subparagraph (E) of section 212(n)(2) of the 
Immigration and Nationality Act (8 U.S.C. 1182(n)(2)) is amended to 
read as follows:
    ``(E)(i) The Secretary of Labor may waive the prohibition in 
paragraph (1)(F) if the Secretary determines that the employer seeking 
the waiver has established that--
            ``(I) the employer with whom the H-1B nonimmigrant would be 
        placed has not displaced, and does not intend to displace, a 
        United States worker employed by the employer within the period 
        beginning 180 days before and ending 180 days after the date of 
        the placement of the nonimmigrant with the employer;
            ``(II) the H-1B nonimmigrant will not be controlled and 
        supervised principally by the employer with whom the H-1B 
        nonimmigrant would be placed; and
            ``(III) the placement of the H-1B nonimmigrant is not 
        essentially an arrangement to provide labor for hire for the 
        employer with whom the H-1B nonimmigrant will be placed.
    ``(ii) The Secretary shall grant or deny a waiver under this 
subparagraph not later than 7 days after the Secretary receives the 
application for such waiver.''.
    (b) Requirement for Rules.--
            (1) Rules for waivers.--The Secretary of Labor shall 
        promulgate rules, after notice and a period for comment, for an 
        employer to apply for a waiver under subparagraph (E) of 
        section 212(n)(2) of such Act, as amended by subsection (a).
            (2) Requirement for publication.--The Secretary of Labor 
        shall submit to Congress and publish in the Federal Register 
        and other appropriate media a notice of the date that rules 
        required by paragraph (1) are published.

SEC. 114. INITIATION OF INVESTIGATIONS.

    Subparagraph (G) of section 212(n)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1182(n)(2)) is amended--
            (1) in clause (i), by striking ``if the Secretary'' and all 
        that follows and inserting ``with regard to the employer's 
        compliance with the requirements of this subsection.'';
            (2) in clause (ii), by striking ``and whose identity'' and 
        all that follows through ``failure or failures.'' and inserting 
        ``the Secretary of Labor may conduct an investigation into the 
        employer's compliance with the requirements of this 
        subsection.'';
            (3) in clause (iii), by striking the last sentence;
            (4) by striking clauses (iv) and (v);
            (5) by redesignating clauses (vi), (vii), and (viii) as 
        clauses (iv), (v), and (vi), respectively;
            (6) in clause (iv), as so redesignated, by striking ``meet 
        a condition described in clause (ii), unless the Secretary of 
        Labor receives the information not later than 12 months'' and 
        inserting ``comply with the requirements under this subsection, 
        unless the Secretary of Labor receives the information not 
        later than 24 months'';
            (7) by amending clause (v), as so redesignated, to read as 
        follows:
            ``(v) The Secretary of Labor shall provide notice to an 
        employer of the intent to conduct an investigation. The notice 
        shall be provided in such a manner, and shall contain 
        sufficient detail, to permit the employer to respond to the 
        allegations before an investigation is commenced. The Secretary 
        is not required to comply with this clause if the Secretary 
        determines that such compliance would interfere with an effort 
        by the Secretary to investigate or secure compliance by the 
        employer with the requirements of this subsection. A 
        determination by the Secretary under this clause shall not be 
        subject to judicial review.'';
            (8) in clause (vi), as so redesignated, by striking ``An 
        investigation'' and all that follows through ``the 
        determination.'' and inserting ``If the Secretary of Labor, 
        after an investigation under clause (i) or (ii), determines 
        that a reasonable basis exists to make a finding that the 
        employer has failed to comply with the requirements under this 
        subsection, the Secretary shall provide interested parties with 
        notice of such determination and an opportunity for a hearing 
        in accordance with section 556 of title 5, United States Code, 
        not later than 120 days after the date of such 
        determination.''; and
            (9) by adding at the end the following:
            ``(vii) If the Secretary of Labor, after a hearing, finds a 
        reasonable basis to believe that the employer has violated the 
        requirements under this subsection, the Secretary shall impose 
        a penalty under subparagraph (C).''.

SEC. 115. INFORMATION SHARING.

    Subparagraph (H) of section 212(n)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1182(n)(2)) is amended to read as follows:
    ``(H) The Director of United States Citizenship and Immigration 
Services shall provide the Secretary of Labor with any information 
contained in the materials submitted by employers of H-1B nonimmigrants 
as part of the adjudication process that indicates that the employer is 
not complying with visa program requirements for H-1B nonimmigrants. 
The Secretary may initiate and conduct an investigation and hearing 
under this paragraph after receiving information of noncompliance under 
this subparagraph.''.

SEC. 116. CONFORMING AMENDMENT.

    Subparagraph (F) of section 212(n)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1182) is amended by striking ``The preceding 
sentence shall apply to an employer regardless of whether or not the 
employer is an H-1B-dependent employer.''.

                     Subtitle C--Other Protections

SEC. 121. POSTING AVAILABLE POSITIONS THROUGH THE DEPARTMENT OF LABOR.

    (a) Department of Labor Website.--Paragraph (3) of section 212(n) 
of the Immigration and Nationality Act (8 U.S.C. 1182(n)) is amended to 
read as follows:
    ``(3)(A) Not later than 90 days after the date of the enactment of 
the H-1B and L-1 Visa Reform Act of 2009, the Secretary of Labor shall 
establish a searchable Internet website for posting positions as 
required by paragraph (1)(C). Such website shall be available to the 
public without charge.
    ``(B) The Secretary may work with private companies or nonprofit 
organizations to develop and operate the Internet website described in 
subparagraph (A).
    ``(C) The Secretary may promulgate rules, after notice and a period 
for comment, to carry out the requirements of this paragraph.''.
    (b) Requirement for Publication.--The Secretary of Labor shall 
submit to Congress and publish in the Federal Register and other 
appropriate media a notice of the date that the Internet website 
required by paragraph (3) of section 212(n) of such Act, as amended by 
subsection (a), will be operational.
    (c) Application.--The amendments made by subsection (a) shall apply 
to an application filed on or after the date that is 30 days after the 
date described in subsection (b).

SEC. 122. H-1B GOVERNMENT AUTHORITY AND REQUIREMENTS.

    (a) Immigration Documents.--Section 204 of the Immigration and 
Nationality Act (8 U.S.C. 1154) is amended by adding at the end the 
following:
    ``(l) Employer To Provide Immigration Paperwork Exchanged With 
Federal Agencies.--Not later than 21 business days after receiving a 
written request from a former, current, or future employee or 
beneficiary, an employer shall provide such employee or beneficiary 
with the original (or a certified copy of the original) of all 
petitions, notices, and other written communication exchanged between 
the employer and the Department of Labor, the Department of Homeland 
Security, or any other Federal agency or department that is related to 
an immigrant or nonimmigrant petition filed by the employer for such 
employee or beneficiary.''.
    (b) Report on Job Classification and Wage Determinations.--Not 
later than 1 year after the date of the enactment of this Act, the 
Comptroller General of the United States shall prepare a report 
analyzing the accuracy and effectiveness of the Secretary of Labor's 
current job classification and wage determination system. The report 
shall--
            (1) specifically address whether the systems in place 
        accurately reflect the complexity of current job types as well 
        as geographic wage differences; and
            (2) make recommendations concerning necessary updates and 
        modifications.

SEC. 123. REQUIREMENTS FOR INFORMATION FOR H-1B AND L-1 NONIMMIGRANTS.

    Section 214 of the Immigration and Nationality Act (8 U.S.C. 1184) 
is amended by adding at the end the following:
    ``(s) Requirements for Information for H-1B and L-1 
Nonimmigrants.--
            ``(1) In General.--Upon issuing a visa to an applicant for 
        nonimmigrant status pursuant to subparagraph (H)(i)(b) or (L) 
        of section 101(a)(15) who is outside the United States, the 
        issuing office shall provide the applicant with--
                    ``(A) a brochure outlining the obligations of the 
                applicant's employer and the rights of the applicant 
                with regard to employment under Federal law, including 
                labor and wage protections;
                    ``(B) the contact information for appropriate 
                Federal agencies or departments that offer additional 
                information or assistance in clarifying such 
                obligations and rights; and
                    ``(C) a copy of the application submitted for the 
                nonimmigrant under section 212(n) or the petition 
                submitted for the nonimmigrant under subsection 
                (c)(2)(A), as appropriate.
    ``(2) Upon the issuance of a visa to an applicant referred to in 
paragraph (1) who is inside the United States, the issuing officer of 
the Department of Homeland Security shall provide the applicant with 
the material described in clauses (i), (ii), and (iii) of subparagraph 
(A).''.

SEC. 124. ADDITIONAL DEPARTMENT OF LABOR EMPLOYEES.

    (a) In General.--The Secretary of Labor is authorized to hire 200 
additional employees to administer, oversee, investigate, and enforce 
programs involving nonimmigrant employees described in section 
101(a)(15)(H)(i)(B).
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

SEC. 125. TECHNICAL CORRECTION.

    Section 212 of the Immigration and Nationality Act is amended by 
redesignating the second subsection (t), as added by section 1(b)(2)(B) 
of the Act entitled ``An Act to amend and extend the Irish Peace 
Process Cultural and Training Program Act of 1998'' (Public Law 108-449 
(118 Stat. 3470)), as subsection (u).

SEC. 126. APPLICATION.

    Except as specifically otherwise provided, the amendments made by 
this title shall apply to applications filed on or after the date of 
the enactment of this Act.

             TITLE II--L-1 VISA FRAUD AND ABUSE PROTECTIONS

SEC. 201. PROHIBITION ON OUTPLACEMENT OF L-1 NONIMMIGRANTS.

    (a) In General.--Subparagraph (F) of section 214(c)(2) of the 
Immigration and Nationality Act (8 U.S.C. 1184(c)(2)) is amended to 
read as follows:
    ``(F)(i) Unless an employer receives a waiver under clause (ii), an 
employer may not employ an alien, for a cumulative period of more than 
1 year, who--
            ``(I) will serve in a capacity involving specialized 
        knowledge with respect to an employer for purposes of section 
        101(a)(15)(L); and
            ``(II) will be stationed primarily at the worksite of an 
        employer other than the petitioning employer or its affiliate, 
        subsidiary, or parent, including pursuant to an outsourcing, 
        leasing, or other contracting agreement.''
    ``(ii) The Secretary of Homeland Security may grant a waiver of the 
requirements of clause (i) for an employer if the Secretary determines 
that the employer has established that--
            ``(I) the employer with whom the alien referred to in 
        clause (i) would be placed has not displaced and does not 
        intend to displace a United States worker employed by the 
        employer within the period beginning 180 days after the date of 
        the placement of such alien with the employer;
            ``(II) such alien will not be controlled and supervised 
        principally by the employer with whom the nonimmigrant would be 
        placed; and
            ``(III) the placement of the nonimmigrant is not 
        essentially an arrangement to provide labor for hire for an 
        unaffiliated employer with whom the nonimmigrant will be 
        placed, rather than a placement in connection with the 
        provision or a product or service for which specialized 
        knowledge specific to the petitioning employer is necessary.
    ``(iii) The Secretary shall grant or deny a waiver under clause 
(ii) not later than 7 days after the date that the Secretary receives 
the application for the waiver.''.
    (b) Regulations.--The Secretary of Homeland Security shall 
promulgate rules, after notice and a period for comment, for an 
employer to apply for a waiver under subparagraph (F)(ii) of section 
214(c)(2), as added by subsection (a).

SEC. 202. L-1 EMPLOYER PETITION REQUIREMENTS FOR EMPLOYMENT AT NEW 
              OFFICES.

    Section 214(c)(2) of the Immigration and Nationality Act (8 U.S.C. 
1184(c)(2)) is amended by adding at the end the following:
    ``(G)(i) If the beneficiary of a petition under this paragraph is 
coming to the United States to open, or be employed in, a new office, 
the petition may be approved for up to 12 months only if--
            ``(I) the alien has not been the beneficiary of 2 or more 
        petitions under this subparagraph during the immediately 
        preceding 2 years; and
            ``(II) the employer operating the new office has--
                    ``(aa) an adequate business plan;
                    ``(bb) sufficient physical premises to carry out 
                the proposed business activities; and
                    ``(cc) the financial ability to commence doing 
                business immediately upon the approval of the petition.
    ``(ii) An extension of the approval period under clause (i) may not 
be granted until the importing employer submits an application to the 
Secretary of Homeland Security that contains--
            ``(I) evidence that the importing employer meets the 
        requirements of this subsection;
            ``(II) evidence that the beneficiary of the petition is 
        eligible for nonimmigrant status under section 101(a)(15)(L);
            ``(III) a statement summarizing the original petition;
            ``(IV) evidence that the importing employer has fully 
        complied with the business plan submitted under clause (i)(I);
            ``(V) evidence of the truthfulness of any representations 
        made in connection with the filing of the original petition;
            ``(VI) evidence that the importing employer, for the entire 
        period beginning on the date on which the petition was approved 
        under clause (i), has been doing business at the new office 
        through regular, systematic, and continuous provision of goods 
        and services;
            ``(VII) a statement of the duties the beneficiary has 
        performed at the new office during the approval period under 
        clause (i) and the duties the beneficiary will perform at the 
        new office during the extension period granted under this 
        clause;
            ``(VIII) a statement describing the staffing at the new 
        office, including the number of employees and the types of 
        positions held by such employees;
            ``(IX) evidence of wages paid to employees;
            ``(X) evidence of the financial status of the new office; 
        and
            ``(XI) any other evidence or data prescribed by the 
        Secretary.
    ``(iii) A new office employing the beneficiary of an L-1 petition 
approved under this paragraph shall do business only through regular, 
systematic, and continuous provision of goods and services for the 
entire period for which the petition is sought.
    ``(iv) Notwithstanding clause (ii), and subject to the maximum 
period of authorized admission set forth in subparagraph (D), the 
Secretary of Homeland Security, in the Secretary's discretion, may 
approve a subsequently filed petition on behalf of the beneficiary to 
continue employment at the office described in this subparagraph for a 
period beyond the initially granted 12-month period if the importing 
employer has been doing business at the new office through regular, 
systematic, and continuous provision of goods and services for the 6 
months immediately preceding the date of extension petition filing and 
demonstrates that the failure to satisfy any of the requirements 
described in those subclauses was directly caused by extraordinary 
circumstances, as determined by the Secretary in the Secretary's 
discretion.''.

SEC. 203. COOPERATION WITH SECRETARY OF STATE.

    Section 214(c)(2) of the Immigration and Nationality Act (8 U.S.C. 
1184(c)(2)), as amended by section 202, is further amended by adding at 
the end the following:
    ``(H) For purposes of approving petitions under this paragraph, the 
Secretary of Homeland Security shall work cooperatively with the 
Secretary of State to verify the existence or continued existence of a 
company or office in the United States or in a foreign country.''.

SEC. 204. INVESTIGATION AND DISPOSITION OF COMPLAINTS AGAINST L-1 
              EMPLOYERS.

    Section 214(c)(2) of the Immigration and Nationality Act (8 U.S.C. 
1184(c)(2)), as amended by sections 202 and 203, is further amended by 
adding at the end the following:
    ``(I)(i) The Secretary of Homeland Security may initiate an 
investigation of any employer that employs nonimmigrants described in 
section 101(a)(15)(L) with regard to the employer's compliance with the 
requirements of this subsection.
    ``(ii) If the Secretary receives specific credible information from 
a source who is likely to have knowledge of an employer's practices, 
employment conditions, or compliance with the requirements under this 
subsection, the Secretary may conduct an investigation into the 
employer's compliance with the requirements of this subsection. The 
Secretary may withhold the identity of the source from the employer, 
and the source's identity shall not be subject to disclosure under 
section 552 of title 5, United States Code.
    ``(iii) The Secretary shall establish a procedure for any person 
desiring to provide to the Secretary information described in clause 
(ii) that may be used, in whole or in part, as the basis for the 
commencement of an investigation described in such clause, to provide 
the information in writing on a form developed and provided by the 
Secretary and completed by or on behalf of the person.
    ``(iv) No investigation described in clause (ii) (or hearing 
described in clause (vi) based on such investigation) may be conducted 
with respect to information about a failure to comply with the 
requirements under this subsection, unless the Secretary receives the 
information not later than 24 months after the date of the alleged 
failure.
    ``(v) Before commencing an investigation of an employer under 
clause (i) or (ii), the Secretary shall provide notice to the employer 
of the intent to conduct such investigation. The notice shall be 
provided in such a manner, and shall contain sufficient detail, to 
permit the employer to respond to the allegations before an 
investigation is commenced. The Secretary is not required to comply 
with this clause if the Secretary determines that to do so would 
interfere with an effort by the Secretary to investigate or secure 
compliance by the employer with the requirements of this subsection. 
There shall be no judicial review of a determination by the Secretary 
under this clause.
    ``(vi) If the Secretary, after an investigation under clause (i) or 
(ii), determines that a reasonable basis exists to make a finding that 
the employer has failed to comply with the requirements under this 
subsection, the Secretary shall provide the interested parties with 
notice of such determination and an opportunity for a hearing in 
accordance with section 556 of title 5, United States Code, not later 
than 120 days after the date of such determination. If such a hearing 
is requested, the Secretary shall make a finding concerning the matter 
by not later than 120 days after the date of the hearing.
    ``(vii) If the Secretary, after a hearing, finds a reasonable basis 
to believe that the employer has violated the requirements under this 
subsection, the Secretary shall impose a penalty under subparagraph 
(L).
    ``(viii)(I) The Secretary may conduct surveys of the degree to 
which employers comply with the requirements under this section.
    ``(II) The Secretary shall--
            ``(aa) conduct annual compliance audits of not less than 1 
        percent of the employers that employ nonimmigrants described in 
        section 101(a)(15)(L) during the applicable fiscal 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 nonimmigrants 
        described in 101(a)(15)(L); 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.''.

SEC. 205. WAGE RATE AND WORKING CONDITIONS FOR L-1 NONIMMIGRANT.

    (a) In General.--Section 214(c)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1184(c)(2)), as amended by section 202, 203, 
and 204, is further amended by adding at the end the following:
    ``(J)(i) An employer that employs a nonimmigrant described in 
section 101(a)(15)(L) for a cumulative period of time in excess of 1 
year shall--
            ``(I) offer such nonimmigrant, during the period of 
        authorized employment, wages, based on the best information 
        available at the time the application is filed, which are not 
        less than the highest of--
                    ``(aa) the locally determined prevailing wage level 
                for the occupational classification in the area of 
                employment;
                    ``(bb) the median average wage for all workers in 
                the occupational classification in the area of 
                employment; and
                    ``(cc) the median wage for skill level 2 in the 
                occupational classification found in the most recent 
                Occupational Employment Statistics survey; and
            ``(II) provide working conditions for such nonimmigrant 
        that will not adversely affect the working conditions of 
        workers similarly employed.
    ``(ii) If an employer, in such previous period specified by the 
Secretary of Homeland Security, employed 1 or more such nonimmigrants, 
the employer shall provide to the Secretary of Homeland Security the 
Internal Revenue Service Form W-2 Wage and Tax Statement filed by the 
employer with respect to such nonimmigrants for such period.
    ``(iii) It is a failure to meet a condition under this subparagraph 
for an employer who has filed a petition to import 1 or more aliens as 
nonimmigrants described in section 101(a)(15)(L)--
            ``(I) to require such a nonimmigrant to pay a penalty for 
        ceasing employment with the employer before a date mutually 
        agreed to by the nonimmigrant and the employer; or
            ``(II) to fail to offer to such a nonimmigrant, during the 
        nonimmigrant's period of authorized employment, on the same 
        basis, and in accordance with the same criteria, as the 
        employer offers to United States workers, benefits and 
        eligibility for benefits, including--
                    ``(aa) the opportunity to participate in health, 
                life, disability, and other insurance plans;
                    ``(bb) the opportunity to participate in retirement 
                and savings plans; and
                    ``(cc) cash bonuses and noncash compensation, such 
                as stock options (whether or not based on performance).
    ``(iv) The Secretary of Homeland Security shall determine whether a 
required payment under clause (iii)(I) is a penalty (and not liquidated 
damages) pursuant to relevant State law.''.
    (b) Regulations.--The Secretary of Homeland Security shall 
promulgate rules, after notice and a period of comment, to implement 
the requirements of subparagraph (J) of section 214(c)(2) of the 
Immigration and Nationality Act (8 U.S.C. 1184(c)(2)), as added by 
subsection (a). In promulgating these rules, the Secretary shall take 
into consideration any special circumstances relating to intracompany 
transfers.

SEC. 206. PENALTIES.

    Section 214(c)(2) of the Immigration and Nationality Act (8 U.S.C. 
1184(c)(2)), as amended by sections 202, 203, 204, and 205, is further 
amended by adding at the end the following:
    ``(K)(i) If the Secretary of Homeland Security finds, after notice 
and an opportunity for a hearing, a failure by an employer to meet a 
condition under subparagraph (F), (G), (J), or (L) or a 
misrepresentation of material fact in a petition to employ 1 or more 
aliens as nonimmigrants described in section 101(a)(15)(L)--
    ``(I) the Secretary shall impose such administrative remedies 
(including civil monetary penalties in an amount not to exceed $2,000 
per violation) as the Secretary determines to be appropriate;
    ``(II) the Secretary may not, during a period of at least 1 year, 
approve a petition for that employer to employ 1 or more aliens as such 
nonimmigrants; and
    ``(III) in the case of a violation of subparagraph (J) or (L), the 
employer shall be liable to the employees harmed by such violation for 
lost wages and benefits.
    ``(ii) If the Secretary finds, after notice and an opportunity for 
a hearing, a willful failure by an employer to meet a condition under 
subparagraph (F), (G), (J). or (L) or a willful misrepresentation of 
material fact in a petition to employ 1 or more aliens as nonimmigrants 
described in section 101(a)(15)(L)--
            ``(I) the Secretary shall impose such administrative 
        remedies (including civil monetary penalties in an amount not 
        to exceed $10,000 per violation) as the Secretary determines to 
        be appropriate;
            ``(II) the Secretary may not, during a period of at least 2 
        years, approve a petition filed for that employer to employ 1 
        or more aliens as such nonimmigrants; and
            ``(III) in the case of a violation of subparagraph (J) or 
        (L), the employer shall be liable to the employees harmed by 
        such violation for lost wages and benefits.''.

SEC. 207. PROHIBITION ON RETALIATION AGAINST L-1 NONIMMIGRANTS.

    Section 214(c)(2) of the Immigration and Nationality Act (8 U.S.C. 
1184(c)(2)), as amended by section 202, 203, 204, 205, and 206, is 
further amended by adding at the end the following:
    ``(L)(i) It is a violation of this subparagraph for an employer who 
has filed a petition to import 1 or more aliens as nonimmigrants 
described in section 101(a)(15)(L) to take, fail to take, or threaten 
to take or fail to take, a personnel action, or to intimidate, 
threaten, restrain, coerce, blacklist, discharge, or discriminate in 
any other manner against an employee because the employee--
            ``(I) has disclosed information that the employee 
        reasonably believes evidences a violation of this subsection, 
        or any rule or regulation pertaining to this subsection; or
            ``(II) cooperates or seeks to cooperate with the 
        requirements of this subsection, or any rule or regulation 
        pertaining to this subsection.
    ``(ii) In this subparagraph, the term `employee' includes--
            ``(I) a current employee;
            ``(II) a former employee; and
            ``(III) an applicant for employment.''.

SEC. 208. REPORTS ON L-1 NONIMMIGRANTS.

    Section 214(c)(8) of the Immigration and Nationality Act (8 U.S.C. 
1184(c)(8)) is amended by inserting ``(L),'' after ``(H),''.

SEC. 209. TECHNICAL AMENDMENTS.

    Section 214(c)(2) of the Immigration and Nationality Act (8 U.S.C. 
1184(c)(2)) is amended by striking ``Attorney General'' each place it 
appears and inserting ``Secretary of Homeland Security''.

SEC. 210. APPLICATION.

    The amendments made by sections 201 through 207 shall apply to 
applications filed on or after the date of the enactment of this Act.

SEC. 211. REPORT ON L-1 BLANKET PETITION PROCESS.

    (a) Requirement for Report.--Not later than 6 months after the date 
of the enactment of this Act, the Inspector General of the Department 
of Homeland Security shall submit to the appropriate committees of 
Congress a report regarding the use of blanket petitions under section 
214(c)(2)(A) of the Immigration and Nationality Act (8 U.S.C. 
1184(c)(2)(A)). Such report shall assess the efficiency and reliability 
of the process for reviewing such blanket petitions, including whether 
the process includes adequate safeguards against fraud and abuse.
    (b) Appropriate Committees of Congress.--In this section the term 
``appropriate committees of Congress'' means--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate;
            (2) the Committee on the Judiciary of the Senate;
            (3) the Committee on Homeland Security of the House of 
        Representatives; and
            (4) the Committee on the Judiciary of the House of 
        Representatives.
                                 <all>