H-2B Cap Relief and DOL Processing Update

Courtesy of our partners at the Seasonal Employment Alliance

DOL processing update

Our updated analysis shows the Department of Labor (DOL) is taking about the same amount of time this year as last year to issue a first action on the initial 2,000 FY24 applications. Although worker volume is down 3.5% as compared to last year, application volume is up 12.5%.

Due to DOL's processing delays, we now expect the FY24 first half cap to be met on or around September 25. We anticipate November 1 will be the last requested date of need to get through. Any dates of need after November 1 will be dependent on a first half visa release from DHS. 

Proposed solution

DOL’s top concern was the lack of funding provided by Congress. OFLC has told us it needs $2 million in additional funds specifically allocated to an H-2B account in US Treasury to meet its goal of a 90% on-time rate for FY24 (DOL considers "on-time" to be applications adjudicated within 30 days of an employer’s start date).

Including the funds in the FY24 spending package would be too late to be impactful for FY24. Instead, the funds must be included in either an emergency supplemental package or a potential October 1 continuing resolution. OFLC needs time to onboard new staff and contractors, and the increase in H-2B applications will start in December. H-2B applications will peak at DOL between January 2-4, 2024, but if DOL is unable to handle the increase that will begin in December, the agency will fall behind before the peak applications are even filed.

Cap relief update 

Similar to last year, we expect DHS to announce its intent to release additional FY24 visas in early October. We expect the visas to be released between mid-November and early December. Our best guess is the allocations will be similar to last year although we expect last year's May 15 allocation to be reallocated to the first and second half releases. 

Senators Graham and Padilla are currently finalizing the text of their bill with legislative counsel. We believe the bill introduction is imminent but will refrain from making a prediction. This has been a long process to say the least.