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Cost of work visas surges, upping the ante for multitude of California's small businesses

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Cost of work visas surges, upping the ante for multitude of California's small businesses

When his entertainment industry clients want to hire foreign actors for a film shoot, Los Angeles immigration attorney Ally Bolour has to time the visa filings carefully, to secure their entry close to the production start date while meeting the tight schedules of performers. Often, there’s little wiggle room.

Now, Bolour’s clients not only must pay more for visa filings but also face a potentially longer wait. Bolour usually applies under expedited “premium processing.” That fee went up 12% to $2,805 while the new turnaround time was lengthened from two to three weeks.

This is one example of what California businesses face in the wake of the U.S. government’s sweeping visa fee increases, some of them astronomical, and other related changes that took effect April 1.

U.S. Citizenship and Immigration Services says the fee hikes are necessary to keep operating and prevent its current backlog of cases from piling even higher. But lawyers, immigrant advocates and small businesses say it’s an unfair burden. Some have sued to stop the fee increases from taking place.

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“It’s a big, extra out-of-pocket expense, and you get no extra benefit,” said Stuart Anderson, executive director of the National Foundation for American Policy, a Washington think tank that favors higher levels of immigration.

The changes come as demand for certain foreign labor, especially high-skilled workers, has surged, in part as companies expand their efforts in artificial intelligence and other emerging fields. The country also continues to grapple with labor shortages in various industries.

Although some argue that popular visa programs such as H-1B allow employers to substitute cheaper foreign engineers and computer scientists for American workers, others say being able to recruit talent from around the world is indispensable for their growth.

“It’s not necessarily about the talent available in the U.S.,” said Brian Riley, vice president of global talent acquisition at Riot Games, a leading video game company based in Los Angeles, with offices and customers in different parts of the world.

Recruiting globally, he said, enables the company to hire the best people for specific roles, and to bring in talent that understands the global audience. “It has huge impact on our ability to continue to make or to improve products that resonate with players across all regions, not just the U.S,” Riley said.

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Riot Games, which employs about 4,400 people globally, including 2,900 in its Los Angeles office, was one of the top H-1B users in Los Angeles in fiscal 2023, with 83 approvals. Led by tech companies, California employers overall accounted for more than 19,300 H-1B approvals for initial employment in 2023, or 16.3% of the nation’s total. Texas was second, with 15%.

California businesses also depend on foreign workers for temporary help at farms and to fill seasonal openings at resort hotels and tourist sites. Visa application fees for those workers more than doubled to $1,090.

Workers pick strawberries on a California farm.

(David Rodriguez/ Salinas Californian)

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As of April 1, the cost to file an H-1B application, which allows skilled foreign nationals to work in the United States for up to six years, rose 70% to $780. Tack on fees for registration and fraud prevention, attorney costs and extras such as premium processing, and the H-1B petition expense could easily come to several thousand dollars per prospective employee.

For small employers, “I think it’s a real hardship for people,” said San Francisco attorney Lisa Spiegel, whose team of 15 immigration specialists at the law firm Duane Morris handles thousands of visa petitions every year. She said they had worked round the clock in recent weeks to beat the April 1 fee increase for clients.

Among the sharpest increases, the filing fee for the L-1, which allows an employer to transfer one of its overseas-based workers to the U.S., tripled to $1,385. And employers now must pay a new, $600 fee for certain employment-based visas to offset the cost of processing asylum applications, which are free and have skyrocketed in recent years.

Katherine Belcher, spokesperson for the federal immigration agency, said the new fees are the result of a comprehensive review that found shortfalls in recovering the full cost of operations, including humanitarian programs, mandatory pay raises and additional staffing requirements. The agency receives very little funding from Congress, and it last imposed a fee hike in 2016.

Belcher said the agency’s analysis indicates that the fee hikes won’t significantly affect business development and employee expansion. The new fee rule also ensures waivers for low-income and vulnerable populations, and expands exemptions for certain humanitarian benefits.

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Democratic Rep. Zoe Lofgren of San Jose, a member of the House Subcommittee on Immigration and Citizenship, says the immigration agency has made progress in streamlining operations, but it needs more staff and to go increasingly to electronic filing rather than doing things by paper.

“Given that they’re fee-funded, they’re in a bind and have to do something,” she said.

For big employers such as Google, Apple and Meta — the top three H-1B visa getters in California — the higher fees are little more than an annoyance and won’t hinder their efforts to recruit people from abroad, though they will still add millions of dollars in expenses. Despite rising overall unemployment and layoffs in tech, the competition for skilled workers remains fierce. And tech companies aren’t likely to let hundreds or even thousands of dollars of extra fees get in the way of their global search for the best workers.

“We have also recognized that the fees have increased, but they haven’t increased in a way that we view them as prohibitive,” said Riley of Riot Games. “The value in the diverse perspectives that [global employees] bring to the organization — they put us in a position to see a return that’s much greater than what we might pay in processing fees.”

The West Los Angeles campus of Riot Games.

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(Brian van der Brug / Los Angeles Times)

It’s another story for some small employers. There are dozens in Los Angeles alone that received just three or four H-1B visa approvals last year; they include tech companies, banks, law firms and engineering and healthcare enterprises.

For them, it’s about both the cost and the timeliness of approvals. Yet it remains to be seen whether the $1.1 billion in additional annual revenue that the agency expects to generate will mean faster and better processing of visa petitions.

“It’s the million-dollar question,” said Spiegel, the San Francisco attorney.

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The increases probably will cause companies to pull back on some immigration benefits they support, said Lynden Melmed, who was chief counsel for the immigration agency from 2007 to 2009 and now oversees government strategies for the law firm BAL. That includes paying employees’ spouses’ application fees, certain travel benefits or premium processing for speedier responses.

For those who say companies undercut American workers by hiring immigrants, Melmed said the fee increases prove otherwise: “Once you get into those size numbers they’re more expensive than a non-foreign worker — it’s because they have particular skills.”

Absent congressional support, he said, the agency will eventually have to confront whether to meet humanitarian needs or drive fees even higher.

“It’s almost like you’ve bled out the source of your fees,” he said. “Businesses have been very supportive, but at a certain point that might cause a conflict between businesses and humanitarian programs.”

For immigrant workers, the higher fees are stoking both anger and worry.

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Anuj Christian, 38, a development operations engineer at a company in Washington, D.C., came to the U.S. from India in 2009 on a student visa and got his first H-1B in 2013. Since then, his firm has paid to renew the visa a handful of times. Christian requested that The Times not identify his company for privacy reasons.

His most recent visa extension is pending. But Christian, who is in touch with many other Indian nationals with work visas, said they were angry when they learned the fees would go up.

Workers such as Christian are eligible for permanent residency through sponsorship from their employer. But backlogs have become extremely lengthy for people from certain countries including India, because only 7% of green cards granted each year can go to people of any given nationality. They must continually renew their temporary employment visas until they reach the front of the line, which can take decades.

The way Christian sees it, money that could otherwise go into an employee’s pocket is spent on visa processing.

“Technically we are not paying the fees, the employer has to pay, but it trickles down to us,” he said.

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Bolour, the L.A. attorney, says the extra visa expenses have made some clients delay planned expansions to the U.S. He said one business owner, an accountant with operations in Mexico City who wants to set up in Los Angeles, had less than $60,000 in capital. With filing fees costing $3,000, every dollar saved mattered.

“In their mind, they are coming to create jobs,” Bolour said. “They see [the extra fees] as a tax, as a surcharge, as something that’s not fair.”

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U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders

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U.S. Space Force awards .6 billion in contracts to South Bay satellite builders

The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.

The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.

Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.

The contract announced Friday is valued at $764 million, and the company is now set to deliver a total of 150 satellites for the network.

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The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.

Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.

“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.

The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.

Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion.

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Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.

Northrop Grumman said the missiles are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.

Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.

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California-based company recalls thousands of cases of salad dressing over ‘foreign objects’

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California-based company recalls thousands of cases of salad dressing over ‘foreign objects’

A California food manufacturer is recalling thousands of cases of salad dressing distributed to major retailers over potential contamination from “foreign objects.”

The company, Irvine-based Ventura Foods, recalled 3,556 cases of the dressing that could be contaminated by “black plastic planting material” in the granulated onion used, according to an alert issued by the U.S. Food and Drug Administration.

Ventura Foods voluntarily initiated the recall of the product, which was sold at Costco, Publix and several other retailers across 27 states, according to the FDA.

None of the 42 locations where the product was sold were in California.

Ventura Foods said it issued the recall after one of its ingredient suppliers recalled a batch of onion granules that the company had used n some of its dressings.

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“Upon receiving notice of the supplier’s recall, we acted with urgency to remove all potentially impacted product from the marketplace. This includes urging our customers, their distributors and retailers to review their inventory, segregate and stop the further sale and distribution of any products subject to the recall,” said company spokesperson Eniko Bolivar-Murphy in an emailed statement. “The safety of our products is and will always be our top priority.”

The FDA issued its initial recall alert in early November. Costco also alerted customers at that time, noting that customers could return the products to stores for a full refund. The affected products had sell-by dates between Oct. 17 and Nov. 9.

The company recalled the following types of salad dressing:

  • Creamy Poblano Avocado Ranch Dressing and Dip
  • Ventura Caesar Dressing
  • Pepper Mill Regal Caesar Dressing
  • Pepper Mill Creamy Caesar Dressing
  • Caesar Dressing served at Costco Service Deli
  • Caesar Dressing served at Costco Food Court
  • Hidden Valley, Buttermilk Ranch
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They graduated from Stanford. Due to AI, they can’t find a job

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They graduated from Stanford. Due to AI, they can’t find a job

A Stanford software engineering degree used to be a golden ticket. Artificial intelligence has devalued it to bronze, recent graduates say.

The elite students are shocked by the lack of job offers as they finish studies at what is often ranked as the top university in America.

When they were freshmen, ChatGPT hadn’t yet been released upon the world. Today, AI can code better than most humans.

Top tech companies just don’t need as many fresh graduates.

“Stanford computer science graduates are struggling to find entry-level jobs” with the most prominent tech brands, said Jan Liphardt, associate professor of bioengineering at Stanford University. “I think that’s crazy.”

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While the rapidly advancing coding capabilities of generative AI have made experienced engineers more productive, they have also hobbled the job prospects of early-career software engineers.

Stanford students describe a suddenly skewed job market, where just a small slice of graduates — those considered “cracked engineers” who already have thick resumes building products and doing research — are getting the few good jobs, leaving everyone else to fight for scraps.

“There’s definitely a very dreary mood on campus,” said a recent computer science graduate who asked not to be named so they could speak freely. “People [who are] job hunting are very stressed out, and it’s very hard for them to actually secure jobs.”

The shake-up is being felt across California colleges, including UC Berkeley, USC and others. The job search has been even tougher for those with less prestigious degrees.

Eylul Akgul graduated last year with a degree in computer science from Loyola Marymount University. She wasn’t getting offers, so she went home to Turkey and got some experience at a startup. In May, she returned to the U.S., and still, she was “ghosted” by hundreds of employers.

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“The industry for programmers is getting very oversaturated,” Akgul said.

The engineers’ most significant competitor is getting stronger by the day. When ChatGPT launched in 2022, it could only code for 30 seconds at a time. Today’s AI agents can code for hours, and do basic programming faster with fewer mistakes.

Data suggests that even though AI startups like OpenAI and Anthropic are hiring many people, it is not offsetting the decline in hiring elsewhere. Employment for specific groups, such as early-career software developers between the ages of 22 and 25 has declined by nearly 20% from its peak in late 2022, according to a Stanford study.

It wasn’t just software engineers, but also customer service and accounting jobs that were highly exposed to competition from AI. The Stanford study estimated that entry-level hiring for AI-exposed jobs declined 13% relative to less-exposed jobs such as nursing.

In the Los Angeles region, another study estimated that close to 200,000 jobs are exposed. Around 40% of tasks done by call center workers, editors and personal finance experts could be automated and done by AI, according to an AI Exposure Index curated by resume builder MyPerfectResume.

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Many tech startups and titans have not been shy about broadcasting that they are cutting back on hiring plans as AI allows them to do more programming with fewer people.

Anthropic Chief Executive Dario Amodei said that 70% to 90% of the code for some products at his company is written by his company’s AI, called Claude. In May, he predicted that AI’s capabilities will increase until close to 50% of all entry-level white-collar jobs might be wiped out in five years.

A common sentiment from hiring managers is that where they previously needed ten engineers, they now only need “two skilled engineers and one of these LLM-based agents,” which can be just as productive, said Nenad Medvidović, a computer science professor at the University of Southern California.

“We don’t need the junior developers anymore,” said Amr Awadallah, CEO of Vectara, a Palo Alto-based AI startup. “The AI now can code better than the average junior developer that comes out of the best schools out there.”

To be sure, AI is still a long way from causing the extinction of software engineers. As AI handles structured, repetitive tasks, human engineers’ jobs are shifting toward oversight.

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Today’s AIs are powerful but “jagged,” meaning they can excel at certain math problems yet still fail basic logic tests and aren’t consistent. One study found that AI tools made experienced developers 19% slower at work, as they spent more time reviewing code and fixing errors.

Students should focus on learning how to manage and check the work of AI as well as getting experience working with it, said John David N. Dionisio, a computer science professor at LMU.

Stanford students say they are arriving at the job market and finding a split in the road; capable AI engineers can find jobs, but basic, old-school computer science jobs are disappearing.

As they hit this surprise speed bump, some students are lowering their standards and joining companies they wouldn’t have considered before. Some are creating their own startups. A large group of frustrated grads are deciding to continue their studies to beef up their resumes and add more skills needed to compete with AI.

“If you look at the enrollment numbers in the past two years, they’ve skyrocketed for people wanting to do a fifth-year master’s,” the Stanford graduate said. “It’s a whole other year, a whole other cycle to do recruiting. I would say, half of my friends are still on campus doing their fifth-year master’s.”

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After four months of searching, LMU graduate Akgul finally landed a technical lead job at a software consultancy in Los Angeles. At her new job, she uses AI coding tools, but she feels like she has to do the work of three developers.

Universities and students will have to rethink their curricula and majors to ensure that their four years of study prepare them for a world with AI.

“That’s been a dramatic reversal from three years ago, when all of my undergraduate mentees found great jobs at the companies around us,” Stanford’s Liphardt said. “That has changed.”

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