Time To Begin Preparation of H-1B CAP FY 2015 Petitions

On April 1, 2014, United States Citizenship and Immigration Services (USCIS) will begin accepting H-1B petitions subject to cap limits for the fiscal year (FY) 2015.  Although April may seem far off, several factors including increasing demands for H-1B workers, an anticipated high volume of Labor Condition Application (LCA) filings, and the possibility of another federal government shutdown signal that it is not too early for employers to being preparing for the H-1B cap season now.

The H-1B cap for FY 2014 was reached within the first week of filing and a lottery to select H-1B petitions for adjudication was conducted for the first time since 2008. With employers filing H-1B petitions for those who missed the most recent year’s cap, as well as new petitions being filed on behalf of graduates and new employees, we anticipate that a large number of H-1B cap FY 2015 filings will result in the H-1B quota being quickly reached.  An increase in H-1B cap petitions will lead to a high volume of Labor Condition Application (LCA) filings, a required component of all H-1B petitions. Consequently, we could see significantly slower processing times and backlogs within the Department of Labor (DOL).  Furthermore, should another federal government shutdown occur in January, it is likely that the processing of LCAs would be halted, possibly impacting a company’s ability to file H-1B cap petitions on April 1st.

We urge employers to identify potential H-1B cap cases now and work with immigration counsel to ensure timely filing of cases.

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

Obama Administration Sued for Trademark Infringement

On October 7, 2014, My Retirement Account Services, LLC sued the United States Treasury Department for trademark infringement.

My Retirement Account Services, LLC, located in Murray, KY, is the owner of the federally registered trademark GETMYRA.COM, for individual retirement account services. The plaintiff claims to have used the common law mark MYRA to identify and distinguish its services since at least as early as 2009. They have also applied to register it with the United States Patent and Trademark Office. On January 28, 2014, President Obama gave his State of Union Address, during which he announced his plan to create a new retirement savings program to be called “myRA.” After the State of the Union Address, the plaintiff alleges that it saw a substantial increase in visitors. The Complaint states that, “At 8:00 p.m. on January 28, 2014, the site experienced a 1400% increase in sessions, as compared to the hour before.” The site continued to receive a significant number of visitors following the speech.

Notably, on January 30, 2014, the United States Department of Treasury filed an application to register “myRA” for retirement savings program services. The United States Patent and Trademark Office rejected the application and cited the GETMYRA.COM registration as confusingly similar to the “myRA” mark.

In the Complaint, the plaintiff claims that the “myRA” mark is confusingly similar to its own marks. The plaintiff claims that this is reverse confusion. Specifically, the plaintiff is concerned that consumers are likely to believe that the plaintiff is the infringer and thus, it has suffered damage to its reputation and goodwill.

Expected Retrogression of Priority Dates Announced on Visa Bulletin

The Department of State Visa Office recently announced its predictions regarding the future movement of priority dates. Priority dates determine the order of immigrant visa availability and essentially establish an individual’s place in line to apply for U.S. Lawful Permanent Resident status (also known as an immigrant visa or “green card”).

As of December 2013, the Employment-Based Second Preference (“EB-2”) category for Indian nationals is expected to retrogress from the present priority date of June 15, 2008 to a date in either 2004 or 2005. The Visa Office attributes this retrogression to the “upgrading” of preference category, from the Employment-Based Third Preference (“EB-3”) category to the EB-2 category, which occurs when an employer files an EB-2 case on behalf of a foreign national previously sponsored in the EB-3 category. Presently, the EB-3 category for Indian nationals has a priority date of September 22, 2003, meaning that only those Indian nationals with a priority date before September 22, 2003 are eligible for green card issuance.  Priority dates for this category are expected to continue to move slowly.

In addition, the priority date for the EB-3 category is expected to move ahead of the EB-2 category for Chinese nationals beginning in December 2013. This means that for Chinese nationals, the wait for an EB-3 priority date to become current is expected to be less than the wait for an EB-2 priority date to become current.

The Visa Office predicts that priority dates for the worldwide EB-3 category (i.e, for nationals of countries other than China, India, Mexico and the Philippines) will advance to 2011 in December 2013, from the current priority date of October 1, 2010.

The Department of State Visa Office predictions for the advancement and retrogression of priority dates are not assurances or guarantees, as visa availability from month to month is determined by usage across the various categories throughout the year, and are adjusted by the Department of State accordingly.

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

2015 Diversity Visa Lottery

What is the Diversity Visa Lottery?

The Diversity Immigrant Visa Program, which is administered by the U.S. Department of State, permits up to 50,000 diversity immigrant visas to be granted for fiscal year 2015 to persons from countries with low immigration rates to the United States. Foreign nationals are selected for eligibility to file an application for permanent residence under this program on the basis of a lottery.

When can I apply?

The U.S. Department of State will accept applications for the 2015 diversity lottery between noon Eastern Daylight Time (EDT) on Tuesday, October 1, 2013, and noon Eastern Daylight Time (EDT) on Saturday, November 2, 2013. Applicants are encouraged to apply in the early part of the application period.

Who is eligible?

In order to enter the diversity visa lottery, an individual must be a national of an eligible country and must meet minimum education/work requirements.

Nationality:

No visas may be awarded to foreign nationals of countries that have sent more than 50,000 immigrants to the U.S. over the period of the last five years. For the 2015 diversity lottery, nationals of the following countries are NOT eligible to apply: Bangladesh, Brazil, Canada, China (mainland born), Colombia, Dominican Republic, Ecuador, El Salvador, Haiti, India, Jamaica, Mexico, Nigeria, Pakistan, Peru, the Philippines, South Korea, the United Kingdom (except Northern Ireland) and its dependent territories, and Vietnam. Persons born in Hong Kong SAR, Macau SAR, and Taiwan are eligible.

Nationality is defined by the location of a person’s birth. However, if a foreign national is ineligible to apply based on their country of birth, there are two alternate ways to qualify. First, a foreign national whose spouse was born in a country whose natives are eligible to apply, may apply provided the spouse is eligible. Second, a foreign national who was born in a country whose natives are ineligible to apply is eligible to apply if neither of his/her parents were born in or resided in that country at the time of the foreign national’s birth.

Education/Work:

In order to enter the diversity lottery, a foreign national must have either a high school education or its equivalent, or two years of work experience within the past five years in an occupation requiring at least two years training or experience.

How Do I Apply?

Diversity lottery submissions are only accepted electronically. The electronic applications are submitted via the U.S. Department of State’s website. Applicants may only submit ONE lottery entry; individuals who attempt to submit more than one application will be disqualified from participating in the lottery.

A diversity application must be accompanied by digital photographs of the applicant, the applicant’s spouse (if applicable), and the applicant’s dependent children (if applicable) taken in accordance with specific requirements set forth in detail on the U.S. Department of State’s website. Note: each spouse may submit his/her own application if he/she otherwise qualifies. In completing the electronic entry form, the following data will be required: full name, date of birth, gender, city of birth, country of birth, country of eligibility for the program, photograph(s), mailing address, current country of residence, phone number (optional), email address, educational level, marital status, number of children, and information about spouse and children.

Winners of the lottery will be selected in a random computerized process. After entering the lottery, it is critical to safeguard the confirmation page as it contains information that is needed to check the status of the application. As of May 1, 2014, applicants can check the status of their application using their confirmation number through the Entry Status Check section of the E-DV website. Lottery winners will not receive correspondence in the mail to confirm the selection of their application; the status of the application can only be checked through the E-DV website.

Selection in the lottery does not automatically confer lawful permanent resident status. Selected individuals (and their dependents) are deemed eligible to apply for lawful permanent resident status. In order to become a permanent resident of the U.S., a lottery winner’s application for permanent residence must be filed and approved between October 1, 2014 and September 30, 2015. The permanent residence application may be filed either via adjustment of status (if the foreign national is in the U.S. in a valid nonimmigrant status) or via consular processing.

Finally, please note that more lottery “winners” are selected than there are immigrant visas available because some winners will not be eligible to become U.S. permanent residents of the U.S. Accordingly, some individuals who are selected to apply for diversity visas may ultimately be unable to become U.S. permanent residents if the available diversity immigrant visas are assigned prior to their permanent residence application being adjudicated.

Where can I get more information?

Instructions for filing an application for the 2015 Diversity Visa Lottery, and information regarding photograph specifications, may be obtained from the U.S. Department of State’s website: https://travel.state.gov/content/travel.html.

For specific legal advice, please contact your Gibney representative.

Defense of Marriage Act Overturned: Estate Planning Implications

This morning, June 26, 2013, the Supreme Court issued a decision in U.S. v. Windsor overturning the Defense of Marriage Act (“DOMA”).  DOMA defined marriage as being solely between a man and a woman for the purposes of federal programs and laws.  Justice Kennedy put into words the distinct issue facing many same-sex married couples: “By creating two contradictory marriage regimes within the same State, DOMA forces same-sex couples to live as married for the purpose of state law but unmarried for the purpose of federal law.”

One such duality was the difference in estate planning for those couples that lived in the 12 states and Washington D.C. where marriage was legal.  These same-sex couples had to formulate an estate plan addressing both state and Federal laws and in most cases there was no ideal planning under the Federal laws.

U.S. v. Windsor addresses one of the major estate planning hurdles that high net worth same-sex married couples faced, the marital exclusion to the estate tax.  Edith Windsor and Thea Spayer were married in Toronto, Canada in 2007 and were residents of the State of New York.  They had been together for 40 years when Thea Spayer died in 2009.  As most married people do, Thea Spayer left her entire estate to her spouse.  If her spouse had been the opposite sex her estate would have claimed a marital exclusion and no tax would have been due.  However, under DOMA because Edith Windsor was the same sex the estate tax was $363,053.

Now, same-sex couples legally married no longer have to engage in this dual regime.  Edith Windsor will now be treated as having been married to Thea Spayer under the laws of New York and the Federal government.

The Supreme Court’s decision will reach farther than the marital exclusion and will impact all same-sex married couples.  As highlighted by Justice Kennedy in his opinion, spouses have various benefits under Federal laws and programs.  While these added benefits are useful for same-sex couples, certain same-sex couples may want benefits to pass to a trust or child directly.  In such a case a spouse may need to sign a waiver.  These are issues that will need to be addressed in their overall estate plan.

In addition to the marital exemption from estate tax, same-sex couples will now also be able to make unlimited lifetime gifts to their spouses without having to use a portion of their unified credit and/or paying gift tax.   In the past same-sex couples would run into issues in how they would title their property. Under DOMA, if one spouse had purchased property and wanted to put it in joint name he or she was making a taxable gift.  It remains to be seen whether same-sex couples that made taxable a gift to their spouses can amend prior year’s gift tax returns.

This ruling also opens up the possibility for same-sex couples to make split gifts.  The annual exclusion per person is $14,000.  Married couples are allowed to split gifts so that they can make gifts up to $28,000 per done.  This is an advantageous estate planning tool where one spouse has significantly more assets.

Same-sex married couples should revisit their estate plan to make sure their current plan reflects their ultimate intentions and to take advantage of the new estate and gift tax benefits available.

Please contact Meredith Mazzola or Gerald Dunworth for additional details regarding this alert, or to schedule a consultation to review your Estate Plan.