What's New In Washington
TechServe Alliance submits timely comments, letters, and testimony to the White House, Congress, and federal agencies to advocate on behalf of our industry. We may also join coalition letters and participate in issue-related coalition advocacy campaigns. Read more about our work below.
TechServe Alliance Files comments on 20% Pass-Through Deduction Proposed Regulations
TechServe Alliance on October 1, 2018 filed comments with the Internal Revenue Service on Proposed Regulations to implement the 20% Pass-Through Deduction included in the Tax Cuts & Jobs Act of 2017, P.L. 115-97.
The comments documented the association’s interpretation of the law and Proposed Regulations as making IT/Engineering staffing firms fully eligible for the deduction, which was intended to spur business development and investments for certain sole proprietorships, limited liability corporations, partnerships, or S corporations.
CEO Mark Roberts also submitted a request for TechServe’s tax counsel, Kent Mason of Davis & Harman LLP, to testify at the October 16, 2018 public hearing. Mason will primarily focus on TechServe’s recommendation to clarify Proposed Regulations examples related to the definition of “consulting.” Read more...
IT and Engineering Staffing Firms Eligible for STEM OTP Again
In an email notification, U.S. Citizenship and Immigration Services (USCIS) clarified STEM OPT participants may engage in a training experience that takes place at a site other than the employer’s principal place of business as long as all of the training obligations are met, including that the employer has and maintains a bona fide employer-employee relationship with the student. Previously, USCIS had appeared to change its policy on STEM OPT through a change to its website by requiring the practical training to take place on the staffing firm’s own premises---a requirement that is inconsistent with the staffing model. Read more...
TECHNICAL TALENT SHORTAGE: Timeline of H-1B Legislative & Regulatory Actions/Call to Action!
While Congress has not enacted legislation that would reform the H-1B program, including proposals to impede or bar our industry from accessing H-1B visas, the Administration has moved full-speed ahead to implement the Buy American/Hire American (BAHA) Executive Order (EO). BAHA directs the Secretaries of Homeland Security, State, and Labor, and the Attorney General to review regulations that allow H-1B beneficiaries to work in the United States. Over the past few months, each department has acted to carry out BAHA and other executive orders intended to limit immigration and restrict access to H-1Bs as detailed in this Timeline. Read more...
TechServe Alliance Responds to DOL Request for Information on Revised Overtime Regulations
TechServe Alliance, on behalf of its member firms, responded to the Department of Labor’s (DOL) Request for Information (RFI) intended to facilitate future rulemaking to replace the Obama Administration’s overtime regulation.
The comments, filed on September 25, 2017, stake out TechServe’s long-held position that the Fair Labor Standards Act (FLSA) does not give DOL legislative rulemaking authority to impose a salary requirement on computer professionals or narrow the scope of the exemption for those employees who satisfy the “duties” test. More than 160,000 comments were submitted in response to the RFI.