October 4, 2022

Athlete Opportunity and Taxpayer Integrity Act: New NIL Legislation Seeks to Protect Student Athletes

U.S. Senators Ben Cardin (D-Md.) and John Thune (R-S.D) recently introduced the Athlete Opportunity and Taxpayer Integrity Act. The goal of the bipartisan legislation is to protect student athletes by preventing individuals and organizations from using the charitable tax deduction for contributions that compensate them for the use of their name, image, and likeness (NIL).

Nonprofits and NIL Collectives

Now that student athletes can monetize their name image and likeness, there has been an increase in sports endorsements in the non-profit sector whether it is the nonprofits themselves looking to partner with athletes to promote charities for a fee, or promotion partnerships through NIL Collectives. NIL Collectives are groups forming such as alumni or boosters, whose goal is to provide athletes with NIL opportunities, such as partnering with local businesses and charities. The athletes are compensated by the collective.

What is the Proposed Legislation?

Since the recent adoption of the NCAA’s NIL rules, some organizations have made payments to college athletes while also claiming 501(c)(3) charitable status, making their athlete contributions tax deductible. Senators proposing the legislation note that this is inconsistent with the intended purpose of the charitable tax deduction, and that it forces taxpayers to then subsidize athletes’ recruitment and payments. The legislation sets up taxpayer guardrails that prohibit any entities from inappropriately using NIL agreements to reduce their own tax obligations. The goal to ensure that the opportunities available for student athletes to benefit from their own name, image and likeness are protected, while protecting taxpayer funds.

Who Would the Legislation Apply To?

The Act would apply to individuals, organizations and collectives, however educational institutions would be exempt.

What Happens Next?

This can have major tax implications for both the sponsors and the athletes. Gibney is closely monitoring the legislation and will continue to provide updates. For questions, please contact info@gibney.com.

October 3, 2022

Immigrant Visa Availability in FY 2023 and the October 2022 Visa Bulletin

October 1, 2022 marked the start of the federal government’s fiscal year 2023 (FY 2023), with the Department of State (DOS) October Visa Bulletin taking effect the same day.

What is sure to be disappointing to many is the significant retrogression in the availability of immigrant visas (“green cards”) for Indian nationals in the employment-based second preference (EB-2) category.  Moreover, the availability of immigrant visas for all employment-based applicants will be fewer this fiscal year than last.

Annual Immigrant Visa Quotas and Retrogression – Some Background

Each year, by statute, 140,000 employment-based immigrant visas (green cards) may be issued to qualified applicants, plus any unused visas from the family-based categories in the preceding year. The visas are distributed among five employment-based (EB) preference categories and then allocated by country of birth according to Congressionally-mandated per country quotas. The employment-based preference categories are summarized in the monthly Visa Bulletin. Visa retrogression occurs when the number of individuals seeking a green card exceeds the number of visas available in the applicable employment-based preference category.  A “cut-off date” is then set and published in the Visa Bulletin. A queue to apply for the green card ensues and a foreign national is assigned a place in line based on their priority date, preference category, and country of birth.

For employment-based immigrants, the priority date is determined by the date that a PERM labor certification application is filed with the U.S. Department of Labor (DOL) for the sponsored foreign national employee.  In instances where a PERM labor certification is not required (e.g., for EB-1 petitions and EB-2 National Interest Waiver petitions), the priority date is determined by the date that an I-140 immigrant petition is filed with U.S. Citizenship and Immigration Services (USCIS).  In order for a foreign national to apply for a green card, their priority date must be available or “current” on the monthly Visa Bulletin.  An immigrant visa number is only available when the priority date is earlier than the cut-off date shown on the Visa Bulletin for the applicable preference category and country of birth.

Historically visa retrogression has been most severe for foreign nationals born in India and to a lesser extent, China, as the demand from nationals from these countries often exceeds statutory quotas. The result has been a multi-year wait for green card issuance for these individuals.

Immigrant Visa Availability in FY 2023 v. FY 2022

Retrogression for Indian nationals in the EB-2 category in October comes on the heels of a record numbers of immigrant visas being issued in FY 2022.  In FY 2022, DOS was able to allocate 281,507 immigrant visas for the employment-based categories, more than twice the annual statutory quota of 140,000, due to unused visas in the family-based categories from the prior year spilling over to the employment-based categories.  Family-based visas went unused largely due to the pandemic and the Trump administration bans on the issuance of immigrant visas abroad during the pandemic.

According to USCIS FAQs, the employment-based annual limit for FY 2023 will be higher than it was pre-pandemic, but lower than it was in FY 2021 and FY 2022.  DOS estimates that the FY 2023 employment-based annual limit will be approximately 200,000 immigrant visas, due to unused family-based visa numbers from FY 2022 being added to the employment-based limit for FY 2023.

With the projected reduction in the number of employment-based immigrant visas available in FY 2023, USCIS and DOS collaborate to control the allocation on a monthly basis through the Visa Bulletin, taking into consideration numerous factors including, but not limited to, the inventory of adjustment of status applications already pending with USCIS and whether they can be advanced to approval in the fiscal year, the projected percentage of applications that will not be approved, and the number of applications for the same individual but in different categories, with the stated aim of issuing as many of the available visas as possible within the fiscal year.

With these factors in mind, DOS sets cut-off dates for each preference category as needed, and USCIS determines whether applicants must follow the monthly “Dates for Filing” chart or the “Final Action Date” chart on the Visa Bulletin.

October 2022 Visa Bulletin Dates

With the publication of the October 2022 Visa Bulletin, USCIS determined that applicants may use the “Dates for Filing” chart to determine eligibility to file adjustment of status applications.  The “Dates for Filing” chart allows applicants to file their green card applications, but the applications cannot be approved until an immigrant visa is available based on the “Final Action Date” chart.

The October “Dates for Filing” for the most commonly used employment-based categories are:

EB-1 Priority Workers: 

All countries are “current.”  Individuals from all countries seeking an immigrant visa pursuant to a permanent resident petition (I-140) filed in the EB-1 category may apply.

EB-2 Members of the Professions Holding Advanced Degrees/Persons of Exceptional Ability:  

All countries except China and India are current.

China’s cut-off date is July 8, 2019.

India retrogresses by more than two years, to May 1, 2012.

EB-3 Professional and Skilled Workers:

All countries except China and India are current.

China advances to July 15, 2018.

India advances to July 1, 2012.

The UPSOT

According to DOS, the forward movement of the India priority dates experienced during FY 2022 was due to the unprecedented high number of immigrant visas available in FY 2022.  With the advancement of priority dates in FY 2022, a heavy applicant demand ensued.  This persistent demand (in the form of pending applications – those that were not approved before the annual quota was reached) coupled with significantly lower visa number availability forecasted for  FY 2023 as compared to FY 2022, required DOS to take corrective action to keep  immigrant visa issuance within the maximum allowed under the FY 2023 annual limits.  The retrogression of priority dates is the “corrective action.”

Unfortunately, this means that many Indian nationals who were able to apply for adjustment of status in FY 2021 and FY 2022 now find themselves with pending applications that cannot be approved for the foreseeable future.  While these individuals and their dependent family members (spouse and children under age 21) are eligible for work and travel authorization while their adjustment of status applications are pending, and in some instances have flexibility to change jobs,  they remain in a status limbo, and may face the prospect of their dependent children turning 21 and “aging out” of eligibility for a green card.

Looking Ahead

DOS will soon release the November Visa Bulletin. Dramatic changes from October’s Visa Bulletin are not expected. DOS will continue to monitor the inventory of pending green card applications with USCIS and  the number of immigrant visas issued  to date, and will adjust the Visa Bulletin cut-off dates as appropriate in the months ahead.

Gibney will continue to watch these developments and will provide updates as they become available.  For additional information, please contact your designated Gibney representative, or email info@gibney.com.

The author wishes to thank Law Clerk Jesse Wang for his contributions to this alert.

October 1, 2022

The Three Things Student Athletes Should Consider for Every NIL Contract

With student athletes now able to profit from their name, image and likeness (NIL), athletes are taking advantage of opportunities to partner with brand sponsors. When entering into contracts, athletes need to review carefully the terms of the agreement to protect their personal brand. Here are three key considerations to keep in mind when considering any contract:

  1. Keep the contract terms and duration short.
    Any contract and associated fees remain binding for the full duration of the contract. It is important for student athletes signing an agreement to keep in mind that the fee is not going to change. A fee should be commensurate with an athlete’s experience but every athlete’s experience level and value is going to change over time. Therefore, student athletes should avoid long agreement terms until the full value of your endorsement is known. This is typically further into a professional career and even then, long-term licenses should be considered carefully, as entering into a long-term agreement puts you at risk of having to honor an agreement that does not reflect your current value.Keep your contract term short. The duration of the contract should never extend beyond the length of your remaining time participating in the athletic program at your current institution.

     

  2. Narrow the scope of rights.It is also important to understand the scope of rights that your contract will cover. When entering a license agreement as an athlete, it’s best to keep the scope of rights as narrow as possible to increase your opportunities for economic benefit.

    Avoid contracts that give the other party the exclusive right to use your NIL in a broadly defined (or vaguely defined) group of products.  And never grant NIL rights for products that the other party does not actually sell.

    For example, when partnering with an energy drink company, you don’t want to grant that company exclusive rights for all drinks. If you narrow the focus, such as NIL exclusivity for energy drinks, it allows you to work with other beverage brands in the industry that are not direct competitors. (Don’t lock yourself out of the soda category by giving exclusive rights to a company that does not sell soda.)

    Avoid licensing agreements that give the brand owner exclusive NIL access in a broad category. By narrowing the scope, athletes can work with multiple brands within the same industry and increase their endorsement opportunities.

     

  3. Limit your time commitment.As part of endorsement agreements, it is standard for brands to use athletes in marketing campaigns and ads. This may require time commitments for photoshoots or fittings that are needed. But as part of the contract, athletes may also be asked to do in-person events or a meet and greet. These additional obligations should always be clearly defined, and an appropriate per diem payment agreed to, before signing any agreement to avoid open-ended requests.

    Make sure that all additional conditions are clearly outlined, including payment terns. Protect your time and prioritize your school obligations by requesting that they take place in the off season.

Keeping these tips in mind will help to protect your personal brand. As part of all contract review, it is also important to be in compliance with state and NCAA rules. Different states have their own NIL guidelines so it is important to understand the guidelines based on where the athlete is attending school. Athletes under the age of 18 must also comply with other state laws. Student athletes should always consult with an attorney to make sure that they are compliant with all applicable regulations and guidance, and to set up the best contracts possible for long-term success.

August 24, 2022

FY 2023 H-1B Cap Reached

United States Citizenship and Immigration Services (USCIS) confirmed that the Fiscal Year (FY) 2023 H-1B cap has been reached.

USCIS conducted its initial  H-1B cap lottery  in March 2022, and employers with selected registrations had a 90-day window during which to file H-1B cap petitions for designated beneficiaries.  This year, the number of H-1B petitions submitted by employers during the initial 90-day filing window was sufficient to meet the FY 2023 statutory cap of 20,000 visas for U.S. advanced degree holders, and 65,000 visas for  “regular” cap beneficiaries.  Last year, USCIS conducted additional lotteries in August and November from reserve registrations because the number of H-1B petitions ultimately submitted and  approved during the initial 90-day filing period running from April 1, 2021 to June 30, 2021 was not sufficient to meet the annual statutory H-1B cap.

This year, there will be no additional lotteries.  USCIS has updated registrants’ online accounts to change the status of pending FY 2023 registrations from “Submitted”  to “Not Selected.”

PETITIONS NOT SUBJECT TO THE H-1B CAP

USCIS will continue to accept and process H-1B petitions that are not subject to the cap. These include filings for extensions of status, amended petitions, changes of employer, concurrent employment for existing H-1B workers, and petitions filed by organizations that are cap-exempt.

If you have any questions about this alert, please contact your Gibney representative or email info@gibney.com.

June 13, 2022

U.S. Lifts Covid Testing Requirement for International Travelers

International travelers to the U.S. are no longer required to provide proof of a negative COVID-19 test prior to boarding a flight to the U.S. The change took effect at 12:01 AM ET on Sunday, June 12, 2022. The Centers for Disease Control and Prevention (CDC) will reassess the decision to eliminate the testing requirement in 90 days and may reinstate a testing requirement if a new variant of concern emerges. Non-U.S. citizens are still required to be vaccinated against COVID-19 to enter the country, with limited exceptions.

Under the prior policy, all international air travelers were required to take a COVID-19 test, regardless of vaccination status or citizenship, no more than 1 day before travel into the U.S. and show a negative result to the airline before boarding their flight or proof of recovery from the virus within the last 90 days. Individuals entering the U.S. from Canada or Mexico  through land border crossings were not subject to the testing requirement.

Elimination of the testing requirement is a welcome development for the tourism industry as well as  business travelers who may now travel without the suspense of being stranded abroad due to testing availability and outcomes.

Further details regarding CDC travel guidance and testing requirements are available here. Due to frequently changing country conditions and global entry requirements, all travelers should check with airlines and  investigate restrictions imposed by their destination country when making travel plans and immediately prior to departure.

For additional information, please contact your designated Gibney representative or email info@gibney.com.

June 1, 2022

USCIS Expands Premium Processing Services

U.S. Citizenship and Immigration Services (USCIS) has started to offer premium processing service for certain long-pending, employment-based permanent resident petitions. Consistent with its previous announcement, USCIS is taking an incremental approach to expanding premium processing service, as follows:

  • Effective June 1, 2022, premium processing service is available for I-140 petitions filed on behalf of multinational executives and managers (EB-1(3) classification) with receipt dates on or before January 1, 2021.
  • Effective July 1, 2022, premium processing service will be available for I-140 petitions for persons seeking a National Interest Waiver (EB-2(1) NIW classification) with receipt dates on or before June 1, 2021.
  • Effective July 1, 2022, premium processing service will be available for I-140 petitions for multinational managers and executives (EB-1(3)) with receipt dates on or before March 1, 2021.

Petitioners may interfile a request for premium processing service for covered petitions by filing Form I-907, Request for Premium Processing Service in accordance with the timelines above, and paying a supplemental fee of $2,500.00 . USCIS will have 45 days from receipt of the premium processing request and fee to adjudicate the petition.

USCIS will continue to expand premium processing service to other benefits in the months and years ahead. As previously reported, USCIS is expected to introduce premium processing service for Form I-539, Applications to Extend/Change Nonimmigrant status for F, J and M nonimmigrants and I-765, Applications for Employment Authorization Documents, for F-1 Optional Practical Training and Exchange Visitors before September 30, 2022.

Gibney will continue to monitor these developments and provide updates as they become available. If you have questions, please contact your designated Gibney representative or email info@gibney.com.

May 11, 2022

USCIS Extends EAD Auto-Extension Period

USCIS has implemented a temporary final rule to automatically extend the validity of certain expired or expiring Employment Authorization Documents (EADs) for up to 540 days. Previously USCIS permitted a 180-day auto-extension for certain EAD renewals.

The temporary policy is effective May 4, 2022 to October 26, 2023, after which USCIS expects to revert back to the 180-day period.  The measure comes as USCIS struggles to eliminate its historic case backlogs and processing delays.

Who Benefits?

The rule permits applicants who have a pending I-765 EAD renewal application in a category that is eligible for automatic extension to have their EAD validity period extended for up to 540 days beyond the current EAD expiration date.

Key Considerations

  • The automatic extension will end 540 days after the current EAD expiry date, or when USCIS issues a decision on the EAD renewal application, whichever is sooner.
  • If the initial 180-day auto-extension period has lapsed, but less than 540 days have passed since the EAD expiration date, applicants in the eligible categories may resume working while the renewal application remains pending for up to 540 days from the EAD expiry date.
  • The 540-day extension period applies to EAD renewal applications filed before and after enactment of the May 4, 2022 rule.
    • I-797C Receipt Notices for EAD renewal applications issued after May 4, 2022 will reference the 540-day automatic extension and may be presented together with a valid Form I-94 and expired EAD as proof of employment eligibility.
    • I-797C Receipt Notices issued prior to May 4, 2022 reference a 180-day automatic extension but nonetheless may be used as evidence of employment authorization for the 540-day period, together with an unexpired I-94 and expired EAD.
    • Individuals relying on the auto-extension period for continued employment authorization should refer to USCIS’s Automatic EAD Extension page to review the documents that should be presented for employment eligibility verification.
  • Reminder: Spouses of E, H, and L nonimmigrants relying on the EAD renewal auto-extension provisions MUST have an unexpired I-94 document to benefit from the auto-extension provision. Spouses of E and L nonimmigrants who have an I-94 with the “S” annotation on the admission classification (E-1S, E-2S, E-3S and L-2S) do not require an EAD for employment authorization during the I-94 validity period.

The expansion of the auto-extension period from 180 to 540 days is welcome news to noncitizens who have lost work authorization due to egregious USCIS processing delays and the U.S. employers who have experienced workforce and business disruption as a consequence.   We  look forward to other USCIS initiatives to improve access to immigration benefits by  reducing case processing times, expanding electronic filing to additional applications, and promoting the fair and efficient adjudication of all applications.

For additional information, please contact your designated Gibney representative or email info@gibney.com.

 

 

 

 

 

May 5, 2022

New York Salary Transparency Law Amended and Delayed Until November 2022

On April 28, 2022, the New York City Council amended the New York City Salary Range Transparency Act. As a result of the amendment, the effective date will be moved from May 15, 2022 to November 1, 2022. The amendment is expected to be signed into law by Mayor Adams.

On January 15, 2022, New York City enacted a first-of-its-kind law requiring employers to include a maximum and minimum salary in all job postings for positions located in New York City. The requirement also applies to internal job postings as well as posted transfers within a company. The new law was set to go into effect on May 15, 2022. However, following the City Council’s passage of an amendment to the law, the effective date will now be November 1, 2022. The law will apply to all employers with more than four employees but excludes temporary hiring firms. This means that virtually all employers with employees in New York City will need to comply.

The amendment revises the salary transparency law in the following ways:

  • Reinforces a limited exception to the requirements for positions that cannot or will not be performed, at least in part, in New York City. In other words, the requirement does not apply to locations outside of New York City including fully remote positions.
  • Clarifies that the language of the provision, specifically that the “minimum and maximum salary” in all job postings is the minimum and maximum annual salary or hourly wage for the advertised position, clarifying that the law covers hourly workers as well as salaried workers.
  • Creates a limited private right of action for an employee. The amendment states: “[E]mployee may bring such an action against their current employer for an alleged violation of this subdivision in relation to an advertisement by their employer for a job, promotion or transfer opportunity with such employer.”

Finally, under the amendment, monetary penalties will not be issued for an initial violation if the violation is cured (with proof that the violation was cured) within 30 days of service of the complaint.

What this Means for Employers

All New York City employers now have until November 1, 2022 to ensure compliance with the new pay transparency requirements. To prepare, employers are recommend to:

  • Begin to assess existing policies for determining salaries and make adjustments where appropriate
  • Develop a process to ensure that published information in connection with internal and external job postings includes required salary information; and
  • Consider an internal audit of current salaries by position as well as exempt/non-exempt classifications.

It is anticipated that the New York City Commission on Human Rights will issued updated guidance in the coming months. Gibney will continue to monitor this for guidance updates.

April 21, 2022

New Electronic Monitoring Requirements for New York Employers Starting May 7

Effective May 7, 2022, employers in New York State will need to provide written notice to new hires where the employer “monitors or otherwise intercepts [employee] telephone conversations or transmissions, electronic mail or transmissions, or internet” using “any electronic device or system.” The new state law applies to any private individual or entity with a place of business in the State of New York.

Any employer that electronically monitors telephones, emails, and/or internet usage must give prior written notice of that monitoring to all new employees and obtain a written acknowledgment in writing (which may be in electronic form). The notice must advise the employees that all telephone calls, emails, or internet access or usage may be subject to monitoring at any and all times and by any lawful means. With respect to existing employees, employers do not have to provide individual written notices or obtain written acknowledgments of the notices. However, New York employers must post such a notice in a “conspicuous place” readily available for viewing by employees subject to electronic monitoring.

The new law does not apply to processes designated to manage the volume or type of transmissions or performed solely for purposes of system maintenance or cybersecurity protection.

The New York State Office of the Attorney General has the authority to enforce the law. The law provides for the imposition of civil penalties, for violations of its requirements. Employers found to be in violation of the law are subject to civil penalties ranging from up to $500 for a first offense, $1,000 for a second offense, $3,000 for a third offense and for each subsequent offense. Significantly, there is no private right of action for affected individuals.

How Employers Can Prepare

To avoid civil penalties, New York employers should prepare for the law by taking the following steps:

  1. Review their electronic monitoring practices and update their employee handbooks and employee-facing website portals to ensure that they are providing adequate notice of such monitoring under the new law.
  2. Prepare an employee acknowledgment of electronic monitoring form to be included in onboarding documents for new employees.
  3. Prepare a notice and post it in a conspicuous place readily available for viewing by employees. Employers may elect to post the notice on their intranet site, employee handbook, and/or physically post it in the workplace. Employers also may wish to place the notice on the login page of the employer’s computer network.
April 6, 2022

USCIS to Expand Premium Processing Offerings

The Department of Homeland Security has published a final rule to expand premium processing service to expand premium processing service for certain immigration benefit requests.  The rule takes effect May 31, 2022.

What is Premium Processing?

Premium processing service currently allows employers to request expedited processing for certain immigration petitions if the employer pays a premium fee in addition to the base petition filing fee.  Premium processing is currently available for employers requesting a limited number of designated classifications when filing Form I-129, Petition for Nonimmigrant Worker, and Form I-140, Immigrant Petition for Alien Worker.

What does the New Rule Do?

Pursuant to the rule, USCIS intends to make premium processing available for additional benefits as part of a 10-year phased-in implementation strategy.

According to the rule’s preamble, USCIS expects to implement premium processing for the following categories in FY 2022 (i.e., before September 30, 2022):

USCIS Form Classification/
Category		 Expected Premium Processing Fee Expected Processing
Time
I-140,
Immigrant
Petition
for
Immigrant
Worker		 Expands eligibility
to preference classifications for Multinational Executives and Managers (EB-1)
and National Interest Waivers (EB-2).		 $2,500.00 45 days
I-539,
Application to Extend/Change Nonimmigrant
Status		 Individuals requesting
F-1, F-2, J-1, J-2,
M-1, and M-2 classification. Expansion to additional categories of E-1, E-2, E-3, L-2, H-4, O-3, P-4, R-2 expected by FY 2025.		 $1,750.00 30 days
I-765
Application for Employment Authorization Document (EAD)		 Requests for EADs for F-1, Optional Practical Training, and Exchange Visitors. Expansion to additional categories expected by FY 2025. $1,500.00 30 days

USCIS will announce on its website which applications and petitions are eligible for premium processing, and the conditions that will apply.  Fees may be adjusted on a biennial basis without notice and comment rulemaking.

Background

Publication of this rule comes at a time when USCIS is under growing criticism for its untenable adjudication delays. The agency has millions of applications pending in processing backlogs, many stemming from Trump-era policies designed to stymie immigration.

Before USCIS can further expand premium processing, it must raise sufficient funds to ensure that it has the staffing and IT resources to avoid increasing non-premium processing related processing times.  Hence the phase-in approach to premium processing expansion.  At the same time, expanding premium processing, even on an incremental basis, will serve as an additional revenue stream for the agency, helping it to add resources and implement efficiencies to eliminate backlogs.

USCIS also announced other initiatives aimed at providing relief, including setting revised processing timelines (essentially aspirational targets) for certain benefits and expanding automatic extensions for EADs when a renewal application is filed.

Gibney will continue to monitor these developments and provide updates as they become available.  If you have questions, please contact your designated Gibney representative or email info@gibney.com.