San Diego Business Lawyer Blog

In many industries, the need for foreign workers and an intimate familiarity with United States immigration policy has existed for decades. Large corporations, particularly those in information technology, have in-house attorneys and human resource departments that have developed systems to handle the processing of foreign employees. For these corporations, the question whether or not to hire foreign workers is an easy one. It's a "been there, done that" scenario. When a department head decides a qualified foreign employee exists for a position they have been unable to fill domestically, the corporate wheels are set in motion to sponsor that worker for a temporary working visa or for permanent employment in the United States. These companies are familiar with the steps necessary to sponsor foreign workers for the various U.S. Visas, including obtaining labor certification for permanent employees.

The decision is much more difficult for smaller businesses interested in hiring foreign workers. Often, new and growing businesses are presented with an unexpected opportunity to hire a foreign worker. Their first impulse is to shy away from the prospect no matter how appealing. Unfamiliarity with immigration policies, fear of excessive legal expense, government red tape and uncertainty overwhelm the small business owner. Business owners should take a pragmatic approach understanding first that United States policy is to admit foreign workers only where it does not come at the expense of U.S. citizens willing and able to take the same position at the prevailing wage. Thus, cheap labor shouldn't be a consideration. Instead, businesses should weigh the need to fill a particular position with a foreign candidate against the costs associated with sponsoring that worker. Costs include attorney fees, filing fees, costs associated with advertising for qualified domestic workers to fill the position and delay in bringing the prospective employee on board. If the employer values the qualifications of the prospective employee enough (often a subjective consideration), paying an immigration attorney to start the process may be a cost effective option.

Consulting a San Diego immigration attorney is the best first step. An immigration attorney will walk the prospective employer through the process explaining the necessary steps, the time it will take to complete those steps, and the associated cost.

Credit card companies' decisions to unilaterally lower credit limits can have a severe impact on start up San Diego businesses.  During recessions, high unemployment rates drive many to consider going out on their own.  As they contemplate the decision, young entrepreneurs often factor in their credit worthiness.  Start up costs and monthly expenses loom heavy.  In addition, the young business owner worries about personal expenses.  If possible, they set aside funding to help pay personal expenses six months out or more providing breathing room while the business has an opportunity to grow.  Credit worthiness provides comfort during these initial months and impacts a business' future ability to obtain company credit.

Today, many young entrepreneurs with a history of responsible financial planning and credit management are unexpectedly finding themselves with lower credit scores despite exceptional credit histories.  Credit companies are reevaluating credit reports and lowering credit limits based on high balances on other revolving debt despite the fact that their customers have stellar records with them.  The negative impact is twofold: first, needed credit lines disappear; second, credit scores are lowered making it more difficult to look elsewhere for alternative credit lines particularly in the midst of this current credit crunch.  For the entrepreneur, this can be devastating.  

While many argue the practice is legal, there can be little doubt that there is something inherently wrong with it.  There are alternative ways for credit card companies to reduce their risk profile - namely higher standards for new applicants.  Penalizing good customers is a tough model to stand behind while maintaining even a modicum of goodwill.  More importantly, credit customers rely on the good faith of the companies they decide to pay interest to.  They had other options at the time they selected which card to apply for and use.  They cannot go backward and elect a different company (one of the many credit card companies today that are not engaged in the practice of lowering limits).  And worse, their current options are limited because of the lower credit score.  Other creditors are raising interest rates instead.  While not very pleasant for customers, it is far less impacting than reducing lines of credit and lowering credit scores.
 

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