The executive order on federal contracting may be less important than what new restrictions on immigration are likely to follow it.
The executive order states, “Within 45 days of the date of this order, the Secretaries of Labor and Homeland Security shall take action, as appropriate and consistent with applicable law, to protect United States workers from any adverse effects on wages and working conditions caused by the employment of H-1B visa holders at job sites , including measures to ensure that all employers of H-1B visa holders, including secondary employers, adhere to the requirements of section 212 of the...
The term “secondary employer” is controversial. The judge in the ITServe Alliance case made clear that USCIS must follow its regulation, which was derived from the Department of Labor’s definition of an employer-employee relationship. Under the USCIS regulation, an employer-employee relationship exists if the employer “may hire, pay, fire, supervise, or otherwise control the work” of the employee.
The executive order’s origin is a complaint by union members of the Tennessee Valley Authority that about 100 employees would be laid off after the awarding of at least one information technology contract worth $15 million. Since the contractors have H-1B visa holders on their payroll, as do almost all large technology companies in America, the union asked the Trump administration for help.
The companies have been criticized primarily because they are headquartered in other countries and have a large global workforce, including employing visa holders. If the companies were headquartered in Tennessee and employed all people born in Tennessee, the TVA employees who lost their jobs would not have been in a better situation.
When companies or federal agencies seek to innovate or address legacy technology issues, it is common to contract out for services. The difficulty is that longtime employees may not have received the training to deliver the innovations themselves, at least in the opinion of the executives running the organization.
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