The Effects of Economic Downturns on H-1B Visa Holders and Sponsored Workers

As of the end of February 2009, almost every aspect of our communities has been affected by the global economic downturn. To address this problem, our new President, Barack Obama, recently signed the “American Recovery and Reinvestment Act of 2009,” more fondly referred to as the “Stimulus bill.” This bill provides a large number of tax credits and billions in U.S. dollars to programs that support American businesses and families, including extending the Unemployment Insurance benefits for thousands of laid-off workers.

However, precisely because of the economic problems in American businesses nowadays, many Sponsored workers and H1B visa holders have been displaced by being laid off of work. As if losing one’s employment and source of income is not devastating enough, it is worse because one’s immigration status is threatened to be lost too. Most of the time, family members are also involved.

AVAILABLE REMEDIES FOR LAID-OFF SPONSORED WORKERS AND H1B VISA HOLDERS

If you were a Sponsored worker or H1B visa holder and you were recently laid off, please do not lose hope. There are available remedies for you. Please call our office to discuss options available to preserve your status. We would be happy to assist you in finding other Employers/Sponsors for you.

UNEMPLOYMENT BENEFITS FOR LAID-OFF SPONSORED WORKERS AND H1B VISA HOLDERS

Many laid-off Sponsored workers are eligible to apply for unemployment benefits. What are “unemployment benefits?” Briefly, these are benefits paid from unemployment insurance programs governed by State laws following federal guidelines. Such insurance programs are paid for by each State’s employers. For unemployment benefits to be provided, the programs require that employment be lost through no fault of the employee. This means that if the employee voluntarily resigns or is terminated for cause, he or she is ineligible for unemployment benefits.

However, some of these laid-off Sponsored workers do not apply for unemployment benefits, even if they are eligible to do so, for fear that such benefits may cause problems due to the public charge removability provisions under Immigration laws. Under the current Immigration laws, persons may be removed (deported) if they become subject to “public charge” within five years of their entry to the United States.

It is important to understand that unemployment benefits are not public charges per se because first, they are from insurance programs paid for by the employers; second, there is no government fee for this service; and third, there is no requirement for the employee to pay it back to the State. In fact, unemployment benefits are considered “taxable income” by the IRS. Thus, eligible laid-off Sponsored workers should apply for these benefits while they are unemployed.

This article is not intended to provide the reader any legal or tax advice. For more information on applicable legal remedies or tax benefits for you, please call our office at (714) 530-0042.