The U.S. Citizen and Immigration Services (USCIS) released new guidance on Monday that clarifies that staffing firms are eligible to file petitions under the H-1B visa program even though they place workers at third-party sites. This comes in response to the Neufeld Memo, issued in January 2010, which cast doubt on whether staffing firms could establish the employer-employee relationship necessary to file H-1B petitions.

Under the new guidance, staffing firms can demonstrate an employer-employee relationship if they can prove whether they “will pay the beneficiary’s salary…determine the beneficiary’s location and relocation assignments…and… perform supervisory duties such as conducting performance reviews, training, and counseling for the beneficiary.” The guidance also clarifies that “end-client letters” are not required and other evidence can be used during the petition process.

In 2010, TechServe Alliance filed suit against USCIS over the Neufeld Memo. The government conceded that the Neufeld Memo was not binding on adjudicators. Monday’s guidance is a culmination of clarification efforts by TechServe Alliance leadership, the U.S. Chamber of Commerce and USCIS Director Mayorkas and his senior staff.

TechServe Alliance is a collaboration of IT staffing firms, solutions firms, clients, consultants and suppliers dedicated to advancing excellence and ethics within the IT services industry.