Essential Workers for Economic Advancement Act

Bill Number

H.R. 5494

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Immigration

Status

Introduced

Latest Action

2025-09-18: Referred to the Committee on the Judiciary, and in addition to the Committees on Ways and Means, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-01-21T09:05:18Z

AI-Generated Summary

Purpose of the Legislation

The Essential Workers for Economic Advancement Act (H.R. 5494) aims to create a new temporary nonimmigrant visa category, H-2C, to allow non-agricultural employers in areas with low unemployment to hire foreign workers for unfilled, low- to medium-skill jobs. This addresses labor shortages in "full employment areas" (regions with unemployment at or below 7.9%) by providing a structured pathway for temporary employment, while prioritizing U.S. worker recruitment and protecting both U.S. and foreign workers.

Key Provisions

• H-2C Visa Category: Establishes H-2C status for foreign workers (nonimmigrants) to perform temporary non-agricultural labor in "registered positions" with "registered employers." Workers must have a job offer, pass background checks, and not be from countries supporting terrorism. Initial stay is up to 36 months, renewable twice for additional periods, with allowances for unemployment (up to 45 days) and travel abroad.

• Employer Registration: Employers must apply to become "registered employers" by proving they operate in full employment areas, pay taxes, and comply with labor laws. Registration lasts up to 3 years, with annual attestations and a $500 fee. Ineligible employers (e.g., those with fraud, labor violations, or human trafficking convictions) face denial or permanent bans.

• Registered Positions and Recruitment: Positions must be in eligible occupations (zone 1-3 per O*NET database: little to medium preparation, no bachelor's degree required; excludes high-skill jobs). Employers must advertise jobs for 30 days on federal and state job sites, conduct at least 3 recruitment activities (e.g., job fairs, online ads), and attest no qualified U.S. workers are available or the job is an "enduring job opening" (unfilled for 60+ days). A public registry tracks open positions.

• Numerical Limits and Allocations: Caps start at 65,000 positions in the first year, adjusting annually (45,000-85,000 range) based on usage (e.g., increases if positions fill quickly). Allocated in 6-month periods; 25% reserved for small businesses (<36 full-time employees). Special allocations available via "scarcity recruitment fee" (5% of worker's annual pay) or extra recruitment for hard-to-fill jobs.

• Worker Protections and Portability: H-2C workers cannot waive rights, must be treated as employees (not independent contractors), and receive wages at or above the higher of the employer's actual pay or prevailing wage. Employers pay all fees (no deductions from worker pay). Workers can switch jobs after 1 year (or immediately if not initial hires), and employment is at-will. No family members allowed; workers ineligible for most federal benefits (e.g., tax credits).

• Enforcement and Monitoring: Mandates E-Verify for employment eligibility, an electronic tracking system (modeled on SEVIS for students), and biometric entry/exit. Complaints process for violations (e.g., wage theft, retaliation) with hearings, back pay, and penalties ($3,000-$25,000 per violation; criminal fines/jail for fraud). Expedited application reviews (10-45 days) with fees and premium processing.

• Study and Reporting: Requires a multi-agency study (Census Bureau, DHS, Labor, etc.) on program impacts (e.g., wages, housing, health care) 3 years after enactment, including effects on U.S. workers and potential expansion.

Significant Changes to Existing Law

• Amends the Immigration and Nationality Act (INA) Section 101(a)(15)(H)(ii) to add H-2C as a new subcategory under H-2 visas, distinct from H-2A (agricultural) and H-2B (seasonal non-agricultural). Introduces Section 219A for detailed rules on admissions, definitions, and processes.
• Modifies INA Section 214(h) to include H-2C in requirements proving no intent to abandon foreign residence (e.g., ties abroad).
• Prohibits H-2D visas (a related category mentioned but not detailed) for spouses/children unless they have their own job offer.
• Adds new employer obligations (e.g., recruitment, fees, monitoring) and worker safeguards not in prior H-2 programs, while limiting benefits access under the Internal Revenue Code.

Potential Impacts

• Government Agencies: Increases workload for DHS (processing applications, monitoring), Department of Labor (wage determinations, recruitment oversight), and State Department (visa issuance). Funds from fees support operations, but requires new electronic systems and regulations within 1 year. Multi-agency study may strain resources but inform future policy.

• Citizens and U.S. Workers: Targets tight labor markets to fill persistent vacancies without displacing U.S. workers (via recruitment mandates and layoff restrictions). Could boost local economies in low-unemployment areas but raise concerns about wage suppression or competition in low-skill sectors; study will assess effects on employment, housing, and public services.

• International Relations: Facilitates temporary migration for low-skill workers from non-terror-linked countries, potentially strengthening ties with labor-sending nations. Bars entrants from high-risk countries, aligning with security policies; no direct family migration may limit appeal to some nations.

Main Stakeholders Affected

• Employers: Non-agricultural businesses (especially small ones and those in low-sales-per-employee industries) in full employment areas benefit from easier hiring for enduring openings; face new compliance costs and risks of penalties.
• Foreign Workers: Low- to medium-skill individuals eligible for temporary U.S. jobs, gaining protections but limited stays/benefits and no family accompaniment.
• U.S. Workers: Protected by recruitment priorities and anti-layoff rules; potential indirect benefits from economic growth, but possible competition in targeted occupations.
• Government Entities: DHS, Labor, State, and Census Bureau handle implementation; state workforce agencies link to job registry.
• Communities: Residents in full employment areas may see infrastructure strain (e.g., housing, health care) offset by economic activity.

Notable Legal, Constitutional, or Political Implications

• Legal: Expands Congress's immigration authority under INA to create targeted temporary programs, emphasizing labor market tests and enforcement to prevent abuse. Strengthens worker rights (e.g., whistleblower protections, anti-retaliation) akin to Fair Labor Standards Act, with de minimis flexibility to avoid overly rigid rules. Potential for litigation over wage calculations or numerical adjustments.

• Constitutional: Aligns with plenary federal power over immigration; no apparent due process issues, as it includes hearings for denials/penalties and equal protections for U.S./foreign workers. Biometric tracking raises privacy concerns but builds on existing systems (e.g., for students).

• Political: Bipartisan sponsorship (Republican and Democratic cosponsors) reflects compromise on immigration reform amid labor shortages. Promotes economic growth without permanent residency paths, potentially appealing to business interests while addressing worker protections; the required impact study could fuel debates on program expansion or reform.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Smucker, Lloyd [R-PA-11]

Cosponsors (11)

Rep. Davis, Donald G. [D-NC-1], Rep. Salazar, Maria Elvira [R-FL-27], Rep. Ciscomani, Juan [R-AZ-6], Rep. Harris, Andy [R-MD-1], Rep. Kelly, Mike [R-PA-16], Rep. McCormick, Richard [R-GA-7], Rep. Amodei, Mark E. [R-NV-2], Rep. Cuellar, Henry [D-TX-28], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Kennedy, Mike [R-UT-3], Rep. De La Cruz, Monica [R-TX-15]

Recent Actions

• 2025-09-18: Referred to the Committee on the Judiciary, and in addition to the Committees on Ways and Means, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-09-18: Referred to the Committee on the Judiciary, and in addition to the Committees on Ways and Means, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-09-18: Referred to the Committee on the Judiciary, and in addition to the Committees on Ways and Means, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-09-18: Introduced in House
• 2025-09-18: Introduced in House

Bill Versions

• Essential Workers for Economic Advancement Act — issued 2025-09-18 — PDF (65 pages)