December 4, 2023
On November 14, 2023, Temple Law School hosted a Live Online Continuing Legal Education (CLE) Program, “The Economics of Immigration: How Current Law Does Not Meet the Reality of Modern Business in the U.S.,” led by Jonathan Grode (LAW ’08), U.S. Practice Director of Green and Spiegel, LLP and adjunct professor at Temple. The program’s purpose was two-fold: 1) to highlight the disconnect between modern US immigration law, which has been largely static since the 80’s, and America’s evolving economic needs and 2) to discuss potential solutions for building a more rational, effective legal framework for business immigration.
Professor Grode opened the session by highlighting the disparity between current U.S. immigration laws and the ever-evolving demands of the global economy. US immigration laws have seen minimal updates since 1986, and businesses find themselves navigating an outdated system that does not cater to recent business environment developments, for example the rise of e-commerce, remote work, or the “gig economy.” Such developments have revolutionized business models and labor needs but find no parallel in immigration statutes. This mismatch places unnecessary constraints on US businesses competing in the global marketplace.
Professor Grode underscored the immense economic contributions of immigrants, particularly in entrepreneurship and innovation. Immigrants are more likely to start businesses than native-born citizens, and many US Fortune 500 companies, including behemoths like Google or Tesla, were founded by immigrants or first-generation Americans. “But,” noted Grode, “our laws don’t necessarily reflect that.” Non-citizen entrepreneurs, he explained, grapple with a rigid visa system that can stifle the very entrepreneurial spirit we should be encouraging, limiting economic growth.
Professor Grode provided examples of how diverse industries are affected by the disconnect between current law and current business needs. Start-ups face difficulties obtaining visas for founders and essential employees, with tech start-ups especially struggling to bring in essential talent from abroad. For large multinational corporations, there are unnecessary complexities in transferring employees between international branches. And a capped lottery system restricts access to skilled workers for many IT companies unable to secure enough H-1B visas for their workforce. The current system also does not provide an adequate legal channel for low-skilled workers. In the agricultural sector, this stark disconnect between labor demand and available visas leads to an undocumented workforce. “There is no year-round, low-skilled visa category… There is no visa for dishwashers. There’s no visa for home and healthcare workers. There’s absolutely no legal mechanism.”
At the same time, the US immigration system and the departments overseeing compliance present uniquely onerous legal and regulatory hurdles. The Department of Labor Compliance requires a highly rigorous process for labor certification (the first step in most green card processes), which impacts hiring timelines, while increasing scrutiny by the Department of Homeland Security leads to both delays and, in some cases, visa denials.
Finally, Professor Grode shared insights into the trajectory of U.S. immigration law, predicting coming demographic changes, an aging population, population peaking, and a shrinking domestic workforce will eventually steer the country towards a more flexible immigration framework to sustain economic growth. He proposes, for example, a dynamic quota system that adjusts to labor market demands, which would be more equitable and efficient, matching the supply of foreign talent to actual US business needs. But challenges remain, seeing as how the “gang of eight” senators proved hopelessly unable to pass comprehensive immigration reform in 2013, despite having a promising proposal to allow founders who had received enough VC investment to stay and develop their enterprises. More recently, the Biden administration also tried to revive an entrepreneurial parole program—”a fancy way of saying a way for founders to get status”—through an executive order. But acceptance of this plan has been slow.
Professor Grode finished by emphasizing the importance of a forward-looking approach to US immigration law. To support modern business and anticipate future trends, we need to utilize micro- and macro-economic perspectives. Immigration law, though not always viewed in this light, has wide-ranging implications for businesses. Professor Grode’s session provided a valuable roadmap for businesses and legal professionals to understand and hopefully influence the evolution of US immigration law.
For more information and future events, the CLE homepage can be found here.
Jonathan Grode (’08) is the U.S. Practice Director and Managing Partner at Green and Spiegel, specializing in U.S. business immigration law. His expertise encompasses obtaining visas for professionals and dealing with Department of Labor and Homeland Security enforcement actions and the immigration aspects of M&A. He is also an award-winning adjunct faculty member at Temple Law, teaching Business Immigration Law, Advising Global Corporations, and Law Practice Management.