Federal Register - January 8, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 5 / Friday, January 8, 2021 / Rules and Regulations TABLE 15ADDITIONAL COST OF SUBMITTING REGISTRATIONS
Cost items
Total affected population
Additional time burden to submit registrations hours
Compensation rate
Total cost
A
B
C
D=ABC
Opportunity cost of time to complete registrations by:
HR specialist
In-house lawyer
Outsourced lawyer
54,847
71,302
148,088
0.33
0.33
0.33
$47.57
102.00
174.65
$860,994
2,400,025
8,534,978
Total
274,237
11,795,997
Source: USCIS analysis.
While the expectation is that the registration process will be run on an annual basis, USCIS may suspend the H1B registration requirement, in its discretion, if it determines that the registration process is inoperable for any reason. The selection process also allows for selection based solely on the submission of petitions in any year in which the registration process is suspended due to technical or other issues. In years when registration is suspended, DHS estimates, based on the 5-year average of H1B cap-subject petitions received for FYs 2016 to 2020, that 211,797 H1B cap-subject petitions will be submitted annually. In the event registration is suspended and 211,797
H1B cap-subject petitions are submitted, DHS estimates that 106,100
petitions will be selected for adjudication to meet the numerical allocations and 105,697 petitions will be rejected. For FY 2021, DHS selected 124,415 registrations to generate the 106,100 petitions projected to meet the numerical allocations. Therefore, DHS
estimates that the additional cost to petitioners for preparing and submitting
H1B cap-subject petitions in light of this final rule will be significantly higher in the event registration is suspended because more petitions will be prepared and submitted in this scenario. However, if registration is suspended there will be no costs associated with registration, so the overall additional cost of this final rule to petitioners will be less stated another way, the estimated added cost for submitting approximately 212,000
petitions if registration is suspended will be less than the added costs based on approximately 274,000 registrations and 106,000 petitions for those with selected registrations. Since the expectation is that registration will be run on an annual basis, and because the estimated additional costs resulting from this final rule will be less if registration is suspended, DHS is not separately estimating the costs for years when registration will be suspended and, instead, is relying on the additional costs created by this final rule when registration will be required to estimate total costs of this final rule to petitioners
seeking to file H1B cap-subject petitions.
vi. Familiarization Cost Familiarization costs comprise the opportunity cost of the time spent reading and understanding the details of a rule to fully comply with the new regulations. To the extent that an individual or entity directly regulated by the rule incurs familiarization costs, those familiarization costs are a direct cost of the rule. The entities directly regulated by this rule are the employers who file H1B petitions. Using FY 2020
internal data on actual filings of Form I129 H1B petitions, DHS identified 24,111 200 unique entities. DHS assumes that the petitioners require approximately two hours to familiarize themselves with the rule. Using the average total rate of compensation of HR
specialists, In-house lawyers, and Outsourced lawyers from Table 4, and assuming one person at each entity familiarizes themself with the rule, DHS
estimates a one-time total familiarization cost of $6,285,527 in FY
2022.
TABLE 16FAMILIARIZATION COSTS TO THE PETITIONERS
Cost items
Total affected population
Additional time burden to familiarize hours
Compensation rate
Total cost
A
B
C
D=ABC
Opportunity cost of time to familiarize the rule by:
HR specialist
In-house lawyer
Outsourced lawyer
4,822
6,269
13,020
2
2
2
$47.57
102.00
174.65
$458,765
1,278,876
4,547,886
Total
24,111
6,285,527
tkelley on DSKBCP9HB2PROD with RULES3
Source: USCIS analysis.
200 Source: USCIS, Office of Policy and Strategy, Policy Research Division PRD, Form I129H1B,
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