On August 3, 2020, President Trump signed the “Executive Order on Aligning Federal Contracting and Hiring Practices with the Interests of American Workers.” This Executive Order directs federal agencies that award government contracts to use U.S. workers instead of foreign nationals which include H-1B visa holders and secondary employers.
According to the Executive Order, this measure is intended to protect U.S. workers during the 2019 novel coronavirus (COVID-19) pandemic. The Executive Order directs the head of each executive department and agency that enters into contracts to review government contracts, assess the negative impact of contractors and subcontractors using temporary foreign labor or offshore work on United States workers, and to work with the Director of the Office of Personnel Management to determine appropriate corrective action, if necessary.
Within 45 days of signing, the Executive Order also directs the Secretaries of Labor and Homeland Security to take action to protect U.S. workers from the “adverse effects on wages and working conditions” caused by the employment of H-1B visa holders at job sites including third-party job sites, and measures that ensure all employers of H-1B visa holders, including secondary employers to adhere to the requirements of Section 212(n)(1) of the Immigration and Nationality Act.
This Executive Order is another of many during the coronavirus (COVID-19) pandemic to potentially affect the work of foreign nationals. As the situation develops, International Legal and Business Services Group, LLP will continue to monitor and provide updates to our dedicated readers and subscribers. If you have a legal question pertaining to your employment and how this Executive Order could affect you, please reach out to your attorney or our knowledgeable team.