Professional Documents
Culture Documents
Amicus Brief of Leading Companies and Business Organizations
Amicus Brief of Leading Companies and Business Organizations
16
NATIONAL ASSOCIATION OF CASE NO. 4:20-cv-04887-JSW
17 MANUFACTURERS, CHAMBER OF
COMMERCE OF THE UNITED STATES OF AMICUS BRIEF OF LEADING
18 AMERICA, NATIONAL RETAIL FEDERATION, COMPANIES AND BUSINESS
TECHNET, and INTRAX, INC., ORGANIZATIONS IN SUPPORT
19 OF PLAINTIFFS’ MOTION FOR
Plaintiffs, PRELIMINARY INJUNCTION
20
v.
21 Date: September 11, 2020
UNITED STATES DEPARTMENT OF Time: 9:00 a.m.
22 HOMELAND SECURITY, UNITED STATES Courtroom: 5, 2nd Floor
DEPARTMENT OF STATE; CHAD F. WOLF, in Judge: Hon. Jeffrey S. White
23 his official capacity as Acting Secretary of
Homeland Security; and, MICHAEL R. POMPEO,
24 in his official capacity as Secretary of State,
25 Defendants.
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Gibson, Dunn & AMICUS BRIEF OF LEADING COMPANIES AND BUSINESS ORGANIZATIONS
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ISO PLAINTIFFS’ MOTION FOR PRELIMINARY INJUNCTION
CASE NO. 4:20-CV-04887-JSW
Case 4:20-cv-04887-JSW Document 45-1 Filed 08/10/20 Page 2 of 25
1 TABLE OF CONTENTS
2 Page
3 SUMMARY OF ARGUMENT ........................................................................................................... vi
4 I. IDENTITY AND INTEREST OF AMICI CURIAE ................................................................. 1
5 II. INTRODUCTION..................................................................................................................... 1
6 III. ARGUMENT ............................................................................................................................ 3
7 A. The Suspended Visa Programs Have A Well-Established And Documented
Track Record Of Benefiting The U.S. Economy. ......................................................... 3
8
1. The H-1B program for specialty occupations boosts the U.S. economy. ......... 3
9
2. The H-2B program for nonagricultural workers also serves an essential
10 role in the economy. .......................................................................................... 4
11 3. The L-1 visa program for intracompany transfers keeps jobs in the U.S.
and boosts the competitiveness of U.S. companies........................................... 6
12
B. Unless It Is Enjoined, The Proclamation Will Continue To Impose Irreparable
13 Harm On Businesses And The Nation’s Economy. ...................................................... 7
14 1. Many leading businesses have recognized that the indefinite suspension
of nonimmigrant visas threatens U.S. competitiveness, ingenuity, and
15 growth................................................................................................................ 7
16 2. The Proclamation is likely to drive talent abroad to the detriment of the
U.S. economy and the benefit of its global competitors. .................................... 9
17
3. The sudden suspension of nonimmigrant visas is harming U.S.
18 businesses and workers in ways that will have lasting impacts. ....................... 12
19 IV. CONCLUSION ....................................................................................................................... 15
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1 TABLE OF AUTHORITIES
2 Page(s)
Cases
3
Doe #1 v. Trump,
4 957 F.3d 1050 (9th Cir. 2020)...........................................................................................................2
5
Trump v. Hawaii,
6 138 S. Ct. 2392 (2018) ......................................................................................................................2
7 Statutes
1 Stuart Anderson, New Trump H-1B Visa Restrictions Will Harm Companies, Forbes
(June 23, 2020), https://bit.ly/2Dhf3TQ. ............................................................................................9
2
Zachary Arnold & Tina Huang, The US Is Turning Away the World’s Best Minds—
3
And This Time, They May Not Come Back, MIT Technology Review (July 14,
4 2020), https://bit.ly/33vmLEw. .......................................................................................................12
5 Shelly Banjo, Trump’s Visa Ban Is Already Hurting Some Tech Job Growth,
Bloomberg (July 6, 2020), https://bloom.bg/3ibD7pJ ..............................................................11, 12
6
David J. Bier, About 20,000 U.S. Employers Are Affected by Trump’s Travel Bans
7 This Year, Cato at Liberty (July 16, 2020), https://bit.ly/3i9NxGw. ................................................7
8 David J. Bier, The Facts About the L-1 Visa Program, Cato at Liberty (June 10, 2020),
9 https://bit.ly/2EWvrtl. .......................................................................................................................7
14 Andrew Edgecliffe-Johnson, U.S. Companies Say Visa Rules Are Jobs Boon for
Canada, Financial Times (June 26, 2020), https://perma.cc/MP7G-ZSKB ...................................11
15
French Tech Visa, https://bit.ly/30ti6Ro ...............................................................................................12
16
Britta Glennon, How Do Restrictions on High-Skilled Immigration Affect Offshoring?
17 Evidence from the H-JB Program, University of Pennsylvania, Wharton School
(Paper No. 3547655, Feb. 21 2020), https://bit.ly/39XDscO................................................9, 10, 11
18
Jason Henry, The Visas and The Fury, New York Times (June 23, 2020),
19
https://nyti.ms/2XvR6yG ..................................................................................................................8
20
H.R. Rep. No. 91-815 (1970), 1970 U.S.C.C.A.N. (84 Stat. 116) 2750 .................................................6
21
IMG Forum, High-Skilled Immigrant Visas, University of Chicago Booth (Feb. 14,
22 2017), https://bit.ly/3gxUIYI. .........................................................................................................13
23 IMG Forum, New Visa Ban, University of Chicago Booth (June 26, 2020),
https://bit.ly/33w8Aig. ....................................................................................................................14
24
Takao Kato & Chad Sparber, Quotas and Quality, The Effect of H-1B Visa
25
Restrictions on the Pool of Prospective Undergraduate Students from Abroad
26 (May 2010), https://bit.ly/3kozGhF ................................................................................................14
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1 Letter from 324 Employers and Trade, Industry, and Higher Education Associations
and Groups Across the American Economy Focused on the High-skilled
2 Workforce to President Donald J. Trump, Secretary of State Michael Pompeo,
3 Secretary of Labor Eugene Scalia, and Acting Secretary of Homeland Security
Chad Wolf (May 21, 2020), https://bit.ly/3fuKvLd ..................................................................3, 4, 7
4
Aaron Levie (@levie), Twitter (June 22, 2020),
5 https://twitter.com/levie/status/1275194199822856192 .................................................................11
6 Tobi Lutke (@tobi), Twitter (June 23, 2020),
https://twitter.com/tobi/status/1275406372411146245...................................................................11
7
Steven Musil, Trump Executive Order Suspending H-1B Visas Takes Heat From Tech
8
Giants, CNET (June 23, 2020), https://cnet.co/3fDtnTO. ................................................................8
9
National Foundation for American Policy, Analysis of Employment Data for Computer
10 Occupations, NFAP Policy Brief (May 2020), https://bit.ly/2PugvEA ............................................4
5 Madeline Zavodny, Immigration and American Jobs, American Enterprise Institute for
Public Policy Research & Partnership For a New American Economy (Dec. 2011),
6 https://bit.ly/3a3xaZ9 ....................................................................................................................5, 6
7 Madeline Zavodny, The Impact of H-1B Visa Holders On The U.S. Workforce,
National Foundation for American Policy, NFAP Policy Brief (May 2020),
8
https://bit.ly/3gyJkf0 .........................................................................................................................4
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1 SUMMARY OF ARGUMENT
2 On June 22, 2020, invoking 8 U.S.C. § 1182(f), the President signed a proclamation that
3 suspends—through 2020 and as long thereafter “as necessary”—a host of the country’s decades-old
4 nonimmigrant visa programs, including H-1B visas for high-skill specialty occupations, H-2B visas
5 for nonagricultural workers, and L-1 visas for intracompany transfers. The purported ground for the
6 suspension is “to protect unemployed Americans from the threat of competition for scarce jobs”
7 amidst “economic disruptions caused by the COVID-19 outbreak.” The law requires the President to
8 make “find[ings]” that his actions will further “the interests of the United States.” 8 U.S.C. § 1182(f)
9 (emphasis added); see also Doe #1 v. Trump, 957 F.3d 1050, 1067 (9th Cir. 2020) (finding it
10 “unlikely that the government will succeed in its broad reliance on § 1182(f)” in issuing proclamation
11 “with virtually no factual findings, minimal reasoning, and an extremely limited window for public
12 comment”).
13 Amici respectfully submit that the June Proclamation fails Section 1182(f)’s findings
14 requirement because the indiscriminate suspension of these crucial nonimmigrant visa programs does
15 not further the interests of the United States. Indeed, the overwhelming weight of evidence and the
16 experience of amici—leading corporations, trade associations, and other business-oriented
17 organizations—make clear that the suspension of these vital nonimmigrant visa programs will stifle
18 innovation, hinder growth, and ultimately harm U.S. workers, businesses, and the economy more
19 broadly in irreparable ways.
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3 community. They represent a broad range of sectors of the U.S. economy. Collectively, they have
4 hundreds of thousands of employees and members across the country and represent hundreds of
5 billions of dollars in annual economic activity. Amici have extensive experience with employment-
6 based visas, including the H-1B, H-2B, and L-1 programs recently suspended by the President; they
7 include some of the greatest beneficiaries of those programs. They have experienced firsthand the
8 benefits of these programs for their companies, their employees, and the U.S. economy more
9 broadly. 1 Based on that experience and knowledge, they submit this brief to highlight the serious
10 economic impact of suspending these programs and the ongoing and irreparable harms that result
12 II. INTRODUCTION
13 For decades, U.S. businesses have welcomed thousands of highly-skilled and motivated
14 workers from abroad to work temporarily in the United States through nonimmigrant visa programs
15 established by Congress. These initiatives, including the H-1B, H-2B, and L-1 visa programs, help
16 drive American growth and innovation by attracting the world’s best talent—including engineers,
17 doctors, bankers, biomedical researchers, software developers, and tech executives—at a time when the
18 global contest to attract skilled workers is increasingly competitive. The programs have been an
19 unequivocal success, earning praise from presidents of both political parties. They are widely
20 understood as benefitting not only U.S. companies and the foreign workers they employ, but also
21 domestic wage earners, families, communities, and the American economy more broadly.
22 On June 22, 2020, President Trump signed Proclamation 10052 (the “Proclamation”), which
23 suspends—through the end of the year and as long thereafter as he deems “necessary”—issuance of
24 new nonimmigrant visas throughout the legal immigration system, including the H-1B, H-2B, and L-1
25
26
1 A full list of amici is set forth in the attached Appendix.
2 No party to the above-captioned action or any of their counsel authored this brief in whole or in
27 part or contributed money that was intended to fund preparing or submitting this brief. No third
party—other than the amici curiae, their members, or their counsel—contributed money that was
28 intended to fund preparing or submitting this brief.
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1 programs. The stated ground for the indefinite suspension is that entry of nonimmigrant workers at this
2 time is “detrimental to the interests of the United States” given “economic disruptions caused by the
3 COVID-19 outbreak” and a purported lack of “alternative means to protect unemployed Americans
4 from the threat of competition for scarce jobs.” According to the Administration’s own estimates, the
5 President’s actions will prevent more than half a million work-authorized individuals from coming to
6 the United States by year’s end. And experts estimate the Proclamation will prevent roughly 20,000
8 These policies were undertaken as a purported exercise of the President’s authority under
9 8 U.S.C. § 1182(f), which requires, at the threshold, a “find[ing]” that his actions serve “the interests of
10 the United States.” While Section 1182(f) affords great deference to the President “‘in the context of
11 international affairs and national security,’” “his power is more circumscribed when he addresses a
12 purely domestic economic issue.” Doe #1 v. Trump, 957 F.3d 1050, 1067 (9th Cir. 2020) (quoting
13 Trump v. Hawaii, 138 S. Ct. 2392, 2409 (2018)). As the Ninth Circuit recently explained in a related
14 context, the provision does not provide “limitless power to deny visas to immigrants.” Id. at 1065.
15 Amici submit that the Proclamation’s indiscriminate and sudden suspension of nonimmigrant
16 visa programs, including the H-1B program for highly-skilled individuals and L-1 program for
17 intracompany transfers, fundamentally disserves the interests of the United States by stifling the ability
18 of U.S. businesses to attract the world’s best talent, drive innovation, and further American economic
19 prosperity. The Proclamation essentially nullifies a carefully balanced and congressionally approved
20 framework for legal immigration, “raising serious questions as to whether the President has effectively
21 rewritten provisions of the INA.” Doe #1, 957 F.3d at 1067. And because it “was issued with virtually
22 no factual findings,” with “minimal reasoning,” id., and against the weight of authority demonstrating
23 the benefits of these programs, it cannot support a “find[ing]” that the suspension serves “the interests
25 Already global competitors in Canada, China, and India, among others, are pouncing at the
26 opportunity to attract well-trained, innovative individuals. And American businesses are scrambling to
27 adjust, hiring needed talent to work in locations outside our nation’s borders. The Proclamation did not
28 consider these costs. And it was based on the false assumption that the suspension would protect
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1 domestic workers. In fact, amici and American businesses more broadly will continue to be irreparably
2 damaged by the Proclamation, to the detriment of their workers and customers, the broader economy,
4 III. ARGUMENT
5 A. The Suspended Visa Programs Have A Well-Established And Documented Track
Record Of Benefiting The U.S. Economy.
6
Congress enacted and refined the H-1B, H-2B, and L-1 visa programs, recognizing that they
7
would benefit the U.S. economy. Study after study and expert after expert have confirmed as much:
8
these programs have driven innovation, increased employment, and fueled economic growth, with
9
scant evidence of detrimental effects on domestic employees. And amici’s real-world experiences
10
reinforce the conclusions of these many academic and governmental analyses. 3
11
1. The H-1B program for specialty occupations boosts the U.S. economy.
12
The H-1B program provides temporary visas and employment authorization for “specialty”
13
occupations, conditioned on Department of Labor certification of a Labor Condition Application. See
14
8 C.F.R. § 214.2(h). Since its establishment in 1952, the H-1 visa classification has allowed U.S.
15
employers to hire professionals born outside the country. Since 1990, this category has been subject
16
to numerical limits and a labor condition application and has been designated the “H-1B visa.”
17
Today it is most commonly associated with the science, technology, engineering, and mathematics
18
(STEM) disciplines. The modern economy increasingly depends on complex information technology
19
and management of vast troves of data. Accordingly, American companies across many sectors and
20
areas of the country employ H-1B visa holders in many capacities, including as operation research
21
analysts, software engineers, database architects, system analysts, and scientists directly engaged in
22
research and development of all types. 4 These individuals are central to the daily operation and
23
continued growth of American businesses across industries. And research overwhelmingly shows
24
25
3 See, e.g., Letter from 324 Employers and Trade, Industry, and Higher Education Associations and
Groups Across the American Economy Focused on the High-skilled Workforce to President
26 Donald J. Trump, Secretary of State Michael Pompeo, Secretary of Labor Eugene Scalia, and
Acting Secretary of Homeland Security Chad Wolf (May 21, 2020), https://bit.ly/3fuKvLd.
27 4 See, e.g., American Immigration Council, The H-1B Visa Program: A Primer on the Program
and Its Impact on Jobs, Wages, and the Economy (Apr. 2020), https://bit.ly/2EViDmZ at 6
28 (noting diversity of occupations and geographic areas).
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1 that these “H-1B visa holders do not adversely affect U.S. workers” but rather benefit them, as the
2 H-1B program “increases innovation, productivity and profits at H-1B employers and boosts total
3 productivity and innovation in the United States,” as well as “employment among other workers in an
4 occupation.”5
5 That is to say, “[a]rguments that [these] highly skilled, temporary foreign workers are freezing
6 out [U.S.-born] workers are rebutted by the best available empirical evidence.” 6 Contrary to the
7 Proclamation’s premise, unemployment rates are very low for jobs that use large numbers of H-1B
8 visas—like STEM occupations—signaling that labor demands for these positions already exceeds the
9 supply. 7 The data further reveal that “H-1B workers complement U.S. workers, fill employment gaps
10 in many STEM occupations, and expand job opportunities for all.” 8 Modeling of a modest expansion
11 of the program projected the creation of more than 1 million new jobs over 25 years, 9 while modeling
12 of its elimination projected a marked reduction in GDP. 10 Further, “[o]verwhelming evidence shows
13 that H-1B workers do not drive down wages of [U.S.-born] workers”—and indeed may lead to
15 2. The H-2B program for nonagricultural workers also serves an essential role in
the economy.
16
The H-2B program covers temporary nonagricultural workers, and is often used in the
17
18
19
5 Madeline Zavodny, The Impact of H-1B Visa Holders On The U.S. Workforce, National
20 Foundation for American Policy, NFAP Policy Brief (May 2020), https://bit.ly/3gyJkf0 at 1–2
(citing and summarizing studies).
21 6 American Immigration Council, supra note 4, at 4 (surveying studies).
22 7 National Foundation for American Policy, Analysis of Employment Data for Computer
Occupations, NFAP Policy Brief (May 2020), https://bit.ly/2PugvEA.
23 8 American Immigration Council, supra note 4 (citing studies); see also May 21, 2020 Letter by
24 324 Signatories, supra note 3 at app. 2-4 (citing studies).
9 Frederick R. Treyz, Corey Stottlemyer, & Rod Motamedi, Key Components of Immigration
25 Reform: An Analysis of the Economic Effects of Creating a Pathway to Legal Status, Expanding
High-Skilled Visas, and Reforming Lesser-Skilled Visas, Regional Economic Models, Inc. (2013),
26 https://bit.ly/31myL8C at 1.
27
10 Michael E. Waugh, Firm Dynamics and Immigration: The Case of High-Skilled Immigration,
Nat’l Bureau of Econ. Research (Working Paper No. 23387, 2017), https://bit.ly/3fAXURY at 29.
28 11 American Immigration Council, supra note 4, at 3.
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1 landscaping, hospitality, forestry, and food processing industries to meet seasonal demand. 12 By law,
2 an H-2B visa can be issued only when the United States Department of Labor determines that
3 “qualified workers in the United States are not available and that the alien’s employment will not
4 adversely affect wages and working conditions of similarly employed United States workers.”
5 8 C.F.R. § 214.2(h)(6)(iv)(A); see also 8 U.S.C. § 1101(a)(15)(H)(ii)(b) (limiting such visas to when
6 “unemployed persons capable of performing such service or labor cannot be found in this country”).
7 Like the H-1B program, the H-2B program is linked to increased employment for domestic
8 workers and increased economic activity. One study found that “100 H-2B workers results in an
9 additional 464 jobs” for US workers. 13 An April 2020 study by the Government Accountability
10 Office (GAO) similarly found a positive correlation between H-2B workers and economic activity.
11 According to the GAO, “employers reported shutting down operations in the absence of H-2B
12 workers,” explaining that “barriers to finding U.S. workers [for the same positions] included remote
13 location and seasonality of the work.” 14 “Most” of the interviewed employers said their business
14 planning was negatively affected by uncertainty about the availability of H-2B visas, a consideration
15 of relevance to the current executive action; 12 of 14 employers studied who were unable to obtain
16 requested visas saw decreased revenues; and companies supplying those employers similarly saw
17 their own sales decrease when H-2B workers were unavailable. 15 The GAO analyses also revealed
18 that “counties with H-2B employers generally had lower unemployment rates and higher weekly
20 The Executive Branch itself recently recognized the importance of the H-2B program in
21 responding to the COVID-19 pandemic. On May 14, 2020, the Department of Homeland Security
22
12 United States Government Accountability Office (GAO), H-2B VISAS: Additional Steps Needed
23 to Meet Employers’ Hiring Needs and Protect U.S. Workers (Apr. 2020), https://bit.ly/3i94y3y at
11–12.
24 13 Madeline Zavodny, Immigration and American Jobs, American Enterprise Institute for Public
25 Policy Research & Partnership For a New American Economy (Dec. 2011), https://bit.ly/3a3xaZ9
at 11; see also Madeline Zavodny & Tamar Jacoby, The Economic Impact of H-2B Workers, U.S.
26 Chamber of Commerce & ImmigrationWorks USA (2010), https://bit.ly/39YlkQ4.
14 GAO, supra note 12 at 2.
27 15 Id.
28 16 Id. at 13–14.
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1 issued a temporary final rule to allow more flexibility in hiring or extending the employment of H-2B
2 visa holders already in the country. 85 Fed. Reg. 28843 (May 14, 2020). Although the change was
3 directed only at the food supply chain, DHS acknowledged that other roles filled by H-2B workers
4 were “nonetheless critical to public health and safety, or the economic and national security and
5 resilience of the nation’s critical infrastructure.” Id. at n.11. Similarly, prior to the Proclamation, the
6 Department of State announced that it would continue to process H-2 applications at consular posts as
7 a “national security priority,” notwithstanding the suspension of “routine” visa services as a result of
8 COVID-19. 17 As the Department of State explained, this was because “the H-2 program is essential
9 to the economy and food security of the United States and is a national security priority.” 18
10 3. The L-1 visa program for intracompany transfers keeps jobs in the U.S. and
boosts the competitiveness of U.S. companies.
11
The L-1 program allows multinational companies to temporarily transfer existing employees
12
to the United States to perform “managerial” or “executive” functions, or functions requiring
13
“specialized knowledge” of the company’s products, processes, or procedures. 8 U.S.C.
14
§ 1184(c)(2)(D). Congress enacted this program 50 years ago to remove restrictions on “the
15
exchange and development of managerial personnel from other nations vital to American companies
16
competing in modern-day world trade.” H.R. Rep. No. 91-815, at 5 (1970), 1970 U.S.C.C.A.N. (84
17
Stat. 116) 2750, 2754. The L-1 category was visionary in allowing a firm to transfer existing
18
employees to where they are needed to maximize business growth; it is a workforce relocation tool
19
for a global economy. Or in the words of USCIS, the program ended prohibitions that “unduly
20
restricted the transfer and development of foreign personnel vital to the interests of U.S.
21
businesses.” 19 “Congress has determined that the ability to transfer company personnel with
22
specialized knowledge is important in fostering the growth and competitiveness of U.S. businesses.
23
Companies should be able to transfer their specialized knowledge employees to do business in an
24
25
26
17 United States Department of State, Important Announcement on H2 Visas, Bureau of Consular
Affairs (Mar. 26, 2020), https://bit.ly/2C0nyll.
27 18 Id.
28
19 Memorandum from USCIS on L-1B Adjudications Policy, PM-602-0111, (Aug. 17, 2015),
https://bit.ly/2PscUXI at 2.
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2 Congress’s expectation and goal have been borne out. As one study explains, “[f]ar from
3 displacing U.S. workers on net, allowing multinationals to bring employees into the United States
4 from abroad prevents them from moving their entire operations abroad.” 21 To the same end, on May
5 21, 2020 (well into the COVID-19 pandemic), 324 employers and organizations who rely on high-
6 skilled workforces wrote to the Administration to explain that the program “plays a direct role in
7 supporting job creation and job retention in the United States, as well as expanding U.S. advanced
8 manufacturing, continuing U.S.-centered research and development, increasing exports from the U.S.,
19 After the President announced the Proclamation, many of America’s leading companies,
20 including many amici, denounced the policy as harmful to innovation and growth, particularly in light
21 of the COVID-19 pandemic. Amazon stated that “[p]reventing high skilled professionals from entering
22 the country and contributing to America’s economic recovery puts America’s global competitiveness at
23
20 Id. at 15.
24 21 David J. Bier, The Facts About the L-1 Visa Program, Cato at Liberty (June 10, 2020),
25 https://bit.ly/2EWvrtl.
22 May 21, 2020 Letter by 324 Signatories, supra note 3.
26 23 David J. Bier, About 20,000 U.S. Employers Are Affected by Trump’s Travel Bans This Year,
27 Cato at Liberty (July 16, 2020), https://bit.ly/3i9NxGw.
24 See Ken Cuccinelli (@HomelandKen), Twitter (June 22, 2020), https://twitter.com/
28 HomelandKen/status/1275201179920760839.
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1 risk.”25 Facebook recognized that “[h]ighly-skilled visa holders play a critical role in driving
2 innovation,” which is “something we should encourage, not restrict.”26 Uber unequivocally stated the
3 suspension “will hurt American businesses.” 27 Apple CEO Tim Cook said he was “[d]eeply
4 disappointed by [the] proclamation,” adding: “[T]his nation of immigrants has always found strength in
5 our diversity, and hope in the enduring promise of the American Dream. There is no new prosperity
6 without both.”28 Microsoft President Brad Smith observed “[n]ow is not the time to cut our nation off
7 from the world’s talent or create uncertainty and anxiety.”29 Google CEO Sundar Pichai, a first-
8 generation immigrant, was similarly “[d]isappointed,” recognizing that “[i]mmigration has contributed
9 immensely to America’s economic success” and “ma[de] it a global leader in tech.”30 And PayPal
10 CEO Dan Schulman warned that the suspension “will slow our progress as a nation” by blocking
11 “current employees [who are] looking to bring their talents to the U.S.” and depriving American
12 businesses of “talented individuals who are filling roles that would otherwise remain vacant.”31
13 Amici and many other leading businesses and organizations, particularly those with substantial
14 R&D needs, share these views. They are rooted in a common understanding, informed by experience
15 and backed by empirical research: That nonimmigrant visa programs help drive American innovation,
16 competitiveness, and growth, and their suspension—for any amount of time—irreparably harms
18
19
20
21
25 Jason Henry, The Visas and The Fury, New York Times (June 23, 2020), https://nyti.ms/2XvR6yG.
22 26 Id.
23 27 Steven Musil, Trump Executive Order Suspending H-1B Visas Takes Heat From Tech Giants,
CNET (June 23, 2020), https://cnet.co/3fDtnTO.
24 28 See Tim Cook (@tim_cook), Twitter (June 23, 2020), https://twitter.com/tim_cook/status/
25 1275407136256712707.
29 See Brad Smith (@BradSmi), Twitter (June 22, 2020), https://twitter.com/BradSmi/status/
26 1275232627453288450.
27
30 See Sundar Pichai (@sundarpichai), Twitter (June 22, 2020), https://twitter.com/sundarpichai/
status/1275192075214966784.
28 31 See Dan Schulman, LinkedIn (June 22, 2020), https://bit.ly/2PuvYol.
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2. The Proclamation is likely to drive talent abroad to the detriment of the U.S.
1 economy and the benefit of its global competitors.
2
Rather than “free[ing] up” positions for domestic workers,32 the suspension forces many
3
companies to create jobs outside the U.S., particularly for highly-specialized positions like those for
4
which H-1B visa holders qualify. The vast majority of H-1B visa holders work in computer
5
occupations.33 The U.S. labor market for these highly-specialized positions is very tight, and the
6
COVID-19 pandemic only compounds this reality by increasing the public’s reliance upon technology
7
and employers’ need to fill tech-related positions.
8
The Proclamation cites increased unemployment in (unspecified) “industries where employers
9
are currently requesting H-1B and L workers to fill positions,”34 and suggests that entry of additional
10
nonimmigrant visa workers “presents a significant threat to employment opportunities for Americans
11
affected by the extraordinary economic disruptions caused by the COVID-19 outbreak.”35 But the
12
unemployment rate in the U.S. for individuals in computer occupations declined from 3% in January of
13
this year to 2.8% in April, and further still to 2.5% in May, while the jobless rate for all other
14
occupations more than tripled from 4.1% to 13.5%.36
15
The indefinite suspension of nonimmigrant visas, many of which would help fill positions in an
16
increasingly tight high-skill labor market, will drive the search for applicants abroad. One recent and
17
widely-cited empirical study, for example, concluded that “increasingly stringent restrictions on H-1B
18
visas,” like the 2004 drop in the H-1B visa cap, “direct[ly]” led to increased employment at foreign
19
affiliates of U.S. multinationals.37 Such restrictions drove firms to open new foreign affiliates and to
20
32 See Transcript of White House Background Press Call Concerning the June 22 Presidential
21 Proclamation Suspending Entry of Certain Nonimmigrants (June 22, 2020),
https://perma.cc/Z9YU-MUZK (quoting an individual who the White House described as a
22 “senior administration official”).
23
33 Stuart Anderson, New Trump H-1B Visa Restrictions Will Harm Companies, Forbes (June 23,
2020), https://bit.ly/2Dhf3TQ.
24 34 Proclamation 10052 of June 22, 2020, Suspension of Entry of Immigrants and Nonimmigrants
Who Present a Risk to the United States Labor Market During the Economic Recovery Following
25 the 2019 Novel Coronavirus Outbreak, 85 Fed. Reg. 38263 (June 25, 2020),
https://bit.ly/2PrxbN1.
26 35 Id.
27 36 Anderson, supra note 33.
28
37 Britta Glennon, How Do Restrictions on High-Skilled Immigration Affect Offshoring? Evidence
from the H-JB Program, University of Pennsylvania, Wharton School (Paper No. 3547655, Feb.
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1 increase employment at existing foreign locations, with the strongest effect “among R&D-intensive
2 firms.” 38 Crucially, in response to prior curbs on nonimmigrant visas, U.S. multinationals not only
3 increased the absolute levels but also the share of their total foreign employment, primarily to three
4 countries: Canada, with its close proximity and more flexible high-skilled immigration policies, as well
5 as India and China, which are rich in high-skilled human capital.39 As the study cautions, any policies
6 ostensibly seeking to mitigate unemployment among Americans should consider that policies aimed at
7 reducing immigration have the unintended consequence of encouraging firms to move jobs abroad.40
8 Of course, that hardly “protect[s] unemployed Americans from the threat of competition for scarce
10 This is straightforward: Diverting skilled workers overseas deprives the U.S. of critical talent
11 needed to sustain growth and drive innovation. And the need for these skills is all the more acute due to
12 the COVID-19 pandemic. If these highly specialized workers cannot come to the United States,
13 employers will be forced to employ them overseas—often along with other supporting employees and
15 One especially problematic spillover is the disruption of U.S.-based R&D activities across the
16 manufacturing, biomedical, semiconductor, and many other sectors. The United States performs one-
17 quarter of global STEM R&D, the largest percentage for any nation, and the share of R&D performed
18 in the U.S. has been on the rise in the past decade.42 73% of all development research in the U.S. is
19 performed by private-sector businesses, with 80% of that research performed by U.S. multinational
20 firms well-situated to send high-skilled jobs abroad to triage ongoing harms that the H- and L-visa
21
22
23 21 2020), https://bit.ly/39XDscO at 24; see also William W. Olney & Dario Pozzoli, The Impact
of Immigration on Firm-Level Offshoring, Dept. of Economics, Williams College (June 13,
24 2019), https://bit.ly/3a36loa.
38 Glennon, supra note 37, at 25.
25 39 Id.
26 40 Id. at 24–26.
27
41 Proclamation 10052, supra note 34.
42 Mark Boroush, Research and Development: U.S. Trends and International Comparisons,
28 National Science Foundation (Jan. 15, 2020), https://bit.ly/2Puq8mK.
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1 suspensions are causing. 43 “From a nationalistic perspective, this is problematic; if skilled foreign-born
2 workers are at a U.S. firm’s foreign affiliate instead of in the U.S., the innovative spillovers that they
3 generate will go to another country instead.”44 And as other leading economists have observed, “[l]ost
4 technological and productivity growth in the US could mean increased growth elsewhere.”45
5 Predictably, other countries are poised to benefit from the U.S.’s wholesale suspension of
6 nonimmigrant visas. As Box, Inc. CEO Aaron Levie warned, when “you restrict immigration, the jobs
7 still get created, just somewhere else.”46 One Fortune 100 CEO put a finer point on it, suggesting the
8 Proclamation “may be a Canadian Jobs Creation Act. You can go to Toronto and hire people there and
9 work quite effectively.”47 Indeed, Twitter’s Canadian chairman, Patrick Pichette, offered his own
10 message to H-1B seekers: “[J]ust look to the North, where we welcome you (and your family) with
11 open arms.”48 And the CEO of a major Ottawa-based ecommerce platform similarly urged individuals
13 The diversion of top talent is already happening. The CEO of a leading consulting firm
14 explained that instead of rescinding offers to those affected by the new H-1B and L-1 visa rules, the
15 firm will “by necessity . . . move them to other countries, probably Canada.”50 Similarly, one Berlin-
16 based online realtor had “raised a total of $15 million in venture capital funding” to “hire up to 50
17 American workers in its New Jersey and California offices.”51 But due to the Proclamation, it is
18
2 At the same time, global competitors are aggressively updating their immigration systems to
3 attract skilled workers. For example, the UK fast-tracks visas for scientists and “plans to overhaul its
4 immigration system to lower barriers for skilled workers.”53 Australia launched a Global Talent
5 program that recruits highly-skilled workers worldwide.54 France has introduced the French Tech Visa,
6 “a simplified, fast-track scheme for non-EU startup employees, founders and investors to obtain a
7 [French] residence permit.”55 These countries realize, as one of China’s leading venture capitalists put
8 it, that “while the US is driving talent away, it is the perfect time for us to race to bring them back.”56
21 52 Id.
22 53 Zachary Arnold & Tina Huang, The US Is Turning Away the World’s Best Minds—And This
Time, They May Not Come Back, MIT Technology Review (July 14, 2020),
23 https://bit.ly/33vmLEw.
24
54 Id.
55 French Tech Visa, https://bit.ly/30ti6Ro.
25 56 Arnold & Huang, supra note 53.
26 57 Proclamation 10052, supra note 34.
27
58 Giovanni Peri, Kevin Shih, & Chad Sparber, STEM Workers, HJB Visas, and Productivity in US
Cities, 33 J. Labor Econ. S225, S252 (2015), https://bit.ly/3abRAQ1.
28 59 See id. at S245, S247–48.
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1 Stanford, and Berkeley—agreed with the following proposition: “If the U.S. significantly lowers the
2 number of H-1B visas now, employment for American workers will rise materially over the next four
3 years.”60 And yet the Proclamation adopts this false assumption as its core premise. Indeed, it goes a
4 step further, suggesting that, aside from the suspension, little “alternative means” exist to avoid a
6 contrary to the Proclamation’s stated goal of “protect[ing] unemployed Americans from the threat of
7 competition” purportedly posed by would-be visa holders62—research suggests curbing H-1B visas
9 Specifically, an economic study modeling the “complete elimination” of the H-1B visa program
10 found “essentially zero” change to wages for high-skilled Americans in year one and a relatively
11 “sharp[]” near-term drop for low-skilled wages.64 The model also found a corresponding drop in GDP,
12 beginning with a 0.13% drop in year one and culminating in a 3.7% decrease over time if the policy
13 were to stand.65 Restricting high-skilled immigration is likely to have many such “unintended[]
14 negative consequences” 66 and will do nothing to shield Americans from “displac[ement] and
16 It would be a mistake to view the Proclamation’s impact as limited to the duration of the
17 COVID-19 crisis. While the suspension forces companies to make decisions in the short-term—such
18 as the diversion of employment to foreign affiliates—these decisions will have irreversible long-term
19 effects. Again, new H-1B hires or intracompany L-1 transfers that would have driven growth in the
20 United States will instead go elsewhere, and once those decisions are made—and the corresponding
21
60 81% percent of the participants disagreed with the proposition and the remaining 19% were
22 uncertain. See IMG Forum, High-Skilled Immigrant Visas, University of Chicago Booth (Feb. 14,
2017), https://bit.ly/3gxUIYI.
23 61 Proclamation 10052, supra note 34.
24 62 Id.
25
63 Waugh, supra note 10, at 3, 31.
64 Id. at 14, 27–29.
26
65 Id. at 29.
27 66 Id.
28 67 Proclamation 10052, supra note 34.
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1 hires, training, team building, and business plans are implemented in another country—there is often no
2 turning back. The U.S. economy, and U.S. workers and employers, will suffer permanent harm, even if
3 the President does not seek to extend the suspension beyond this year.
4 In a June 2020 survey of the aforementioned IGM Economic Experts Panel, a full 98% of
5 leading economists either “agreed” or “strongly agreed” that, “[e]ven if it is temporary, the ban on visas
6 for skilled workers, including researchers, will weaken US leadership in STEM and R&D.”68 And 93%
7 of those same economists felt that “[s]ignificantly fewer top foreign students will be attracted to US
8 universities as a result of increased restrictions on visas for skilled workers.”69 Again, research
9 confirms this.70 By shrinking the number of foreign students who would otherwise seek to build a life
10 in the U.S., America deprives itself of a wealth of future entrepreneurs and innovators.71
11 The immediate impact of the Proclamation is evident among the amici. Signatories play key
12 roles in the information and communications technology sectors, and their inability to reliably secure
13 H-1B and L-1 visas disrupts new product roll-outs, upgrades, and production efforts. These programs
14 are all key to meeting surge capacity or R&D deadlines tied to telemedicine, work-from-home, and
15 distance learning, all vital to the U.S. response to the COVID-19 pandemic. One signatory runs a
16 leading business relying on a highly integrated global supply chain, where shortages in one region
17 cannot readily be mitigated by production in other regions. This requires bringing expert engineers
18 from its offices in other regions of the world or having its suppliers do so. But without access to L-1B
19 visas, deadlines will be missed and equipment repairs delayed. This affects not only the company but
20 the nation, because the company’s technology supports healthcare, hospital systems, virtual learning,
21 remote working, data centers, cloud services, critical manufacturing, and service industries.
22 Other signatories facilitate short-term U.S.-based work for managers as L-1A visa holders or
23
24
68 IMG Forum, New Visa Ban, University of Chicago Booth (June 26, 2020), https://bit.ly/33w8Aig.
69 Id.
25 70 See, e.g., Takao Kato & Chad Sparber, Quotas and Quality, The Effect of H-1B Visa Restrictions
26 on the Pool of Prospective Undergraduate Students from Abroad (May 2010),
https://bit.ly/3kozGhF at 2 (“Since foreign-student interest in a US degree is partly driven by the
27 hope that it will improve access to the US labor market, policies reducing H-1B visas are likely to
deter foreign students from pursuing tertiary American education.”).
28 71 See id.
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1 specialized knowledge L-1B professionals. One might need dozens of L-1B engineers on U.S.
2 assignment for a four- to six-week period carefully timed with American colleagues to complete joint
3 troubleshooting on a new product. Another might need L-1A visa holders to manage functions over a
4 years-long period key to clinical testing of a new food product or developing proprietary trading or
5 financial services. All these carefully laid plans have been thrown into tumult in ways that will inflict
7 IV. CONCLUSION
8 The President’s suspension of nonimmigrant visa programs, supposedly to “protect” American
9 workers, actually harms those workers, their employers, and the economy. Rather than shielding
10 domestic workers from the threat of foreign competition, the Proclamation all but ensures that firms
11 will need to hire abroad to fill highly-skilled positions, for which the domestic demand far exceeds the
12 available supply of workers. Extensive economic research confirms that more, not less, nonimmigrant
13 visas drives positive economic outcomes for U.S. workers, businesses, and the national economy.
14 But beyond the overwhelming data undermining the Proclamation’s purported rationale, the
15 Administration’s actions send a fundamentally un-American message to those abroad who might
16 otherwise have brought their skills and ingenuity to the United States. For many decades, this country
17 has been a magnet to these talented people, who have—along with U.S.-born workers and innovators—
18 made our economy the most dynamic in the world. The Proclamation prevents U.S. companies from
19 attracting the world’s best and brightest, and deprives those innovative, highly-skilled individuals of
21 //
22 //
23 //
24 //
25 //
26 //
27 //
28 //
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Respectfully submitted,
1
Dated: August 10, 2020 GIBSON, DUNN & CRUTCHER LLP
2
3
By: /s/ Ethan D. Dettmer
4 ETHAN D. DETTMER
5 Theodore B. Olson
Stuart F. Delery*
6 David A. Schnitzer*
GIBSON, DUNN & CRUTCHER LLP
7 1050 Connecticut Avenue, N.W.
Washington, DC 20036-5306
8 *pro hac vice application forthcoming
9 Ethan D. Dettmer
Jonathan N. Soleimani
10 GIBSON, DUNN & CRUTCHER LLP
555 Mission Street, Suite 3000
11 San Francisco, CA 94105-0921
12 Attorneys for Amici Curiae
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2 1. Adobe Inc.
4 3. Amazon.com, Inc.
5 4. Apple Inc.
6 5. Atlassian, Inc.
7 6. Autodesk, Inc.
9 8. Box, Inc.
10 9. BSA Business Software Alliance, Inc. d/b/a BSA | The Software Alliance
18 17. HP Inc.
9 36. SAP SE
26
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