USCIS is investigating potential fraud in the H-1B Cap registration process, as the number of beneficiaries registered by multiple employers more than doubled in the FY 2024 lottery registration.
By Abby Swanson, Immigration Attorney
Given the competitive nature of the H-1B CAP registration process, the problem of multiple registrations being submitted on behalf of the same beneficiary is not a new one. While the H-1B Cap registration rules bar an employer from submitting more than one H-1B Cap registration for an employee, there is no explicit prohibition on having multiple employers submit an H-1B Cap registration for the same employee. In the years since USCIS introduced the H-1B Cap registration process, the number of Eligible Registrations for Beneficiaries with Multiple Eligible Registrations has grown from 28,125 in 2021 to 165,180 last year. The selection results for the recently completed 2024 fiscal year selection process, however, have prompted allegations that fraud is being committed by H-1B employers, as well as a renewed call for USCIS to address a familiar problem: that market demand for H-1B visas severely outweighs the numbers allotted.
Data published on USCIS.gov reports that the number of Eligible Registrations for Beneficiaries with Multiple Eligible Registrations submitted this year is 408,891, a notable increase from the number reported last year. Because, as noted above, the USCIS system prohibits and purports to catch multiple submissions by the same employer for the same beneficiary, this increase in multiple registrations is likely the result of multiple employers submitting registrations for one foreign national. Presumably, if a beneficiary is selected under a registration submitted by a different employer from the one for whom the beneficiary is currently working, that employer would then contract the individual out for a period of time, or employ them briefly and then lay them off, giving them 60 days to transfer their petition to their true employer. USCIS takes the position that this scenario constitutes fraud, as companies must attest that they have a real job for the individual they are submitting a registration for. With the significant rise in these multiple registrations, USCIS has stated that they will be initiating law enforcement referrals for further investigation against employers suspected of fraud, and that they have already denied and revoked petitions for this reason. The website further encourages individuals suspecting their place of employment of having committed fraud to submit tips via email.
The significant growth in multiple registrations reflect an issue that is at the heart of the H-1B visa program: the high number of H-1B registrations far exceeds the number of CAP petitions allotted by the government. 350,103 Eligible Registrations for Beneficiaries with No Other Eligible Registrations were submitted this year, in comparison to the 110,791 registrations selected by USCIS. When the 408,981 Eligible Registrations for Beneficiaries with Multiple Eligible Registrations are added to this number, the selection rate is only 14%. Clearly, the market is showing that it needs more new H-1B visas each year. While the Biden administration has suggested raising the fees associated with registration, as well as with filing of H-1B petitions, this is not likely to deter employers who want to continue to invest in the success of their existing foreign national employees. It also remains to be seen whether USCIS’s efforts to combat fraud will have an impact on next year’s CAP registration numbers.
