A new House bill could fundamentally reshape the H-1B visa program and bar the staffing industry’s ability to sponsor foreign workers.

H.R. 8443, the End H-1B Visa Abuse Act of 2026, was recently introduced by Rep. Eli Crane (R-AZ) and has been referred to the House Committee on the Judiciary. Among other things, the bill would

• temporarily suspend H-1B visa issuance for three years
• permanently overhaul the program by dramatically reducing visa caps, mandating stringent wage and fee requirements, and barring family dependents
• bar H-1B workers from working for more than one employer at a time and prohibit third-party staffing agencies from employing H-1B workers
• eliminate any pathways to permanent residency from within the U.S.

ASA, working with its federal lobbyist Jack Kingston from Squire Patton Boggs, is reaching out to Rep. Crane’s office to schedule a meeting to discuss the negative effects the ban would have on the U.S. economy. ASA also is scheduling meetings with members of the congressional judiciary committee to share its concerns.

While it is highly unlikely that this bill will be enacted this year, the language banning staffing firms from sponsoring H1-B visas is unacceptable and ASA will make that very clear to members of congress.

ASA will keep members updated on developments as they occur.

Nebraska Gov. Jim Pillen recently signed into law LB 921, the Nebraska Health Care Staffing Agency Registration Act. The new requirements, which include annual registration with the state department of labor, take effect July 1, 2027, and apply to all health care staffing agencies operating in Nebraska, including app- and platform-based companies.

The original bill, which was introduced in 2022, contained several onerous provisions, including a ban on conversion fees and a requirement for quarterly reporting to the department of labor. ASA, along with its Nebraska lobbyist Sean Kelley, met several times with the bill’s sponsors to discuss the staffing industry’s concerns.

After three years of negotiations, which included meetings with the governor’s office, ASA was able to obtain two major concessions: First, the outright ban on conversion fees was replaced with language that allows agencies to charge conversion fees to facilities, subject to a prorated reduction reaching zero following 720 hours of service. Second, the requirement for firms to submit operation and billing reports to the state department of labor quarterly was removed.

The law grants the state department of labor authority to investigate complaints, conduct random audits, and impose civil penalties of up to $500 for a first violation and $5,000 for each subsequent offense—a public registry of registered agencies will be maintained on the department’s website.

ASA will continue to monitor implementation rule making by the Nebraska Department of Labor, and members with questions about compliance should contact the ASA legal department.

California Senate Bill 1032, introduced by Sen. Eloise Gómez Reyes (D–Colton) would establish mandatory registration for temporary staffing agencies operating in California, administered by the state labor commissioner. The bill would require staffing agencies to register annually before conducting business, submit proof of workers’ compensation coverage, disclose ownership interests, undergo background checks, and demonstrate financial capacity. The bill would create a public registry of compliant agencies and would grant registered agencies a private right to sue unregistered agencies and clients that fail to verify registration.

Note: The correct date that the law takes effect—Jan. 1, 2029—is reflected in this article, originally published earlier this week.

On March 30, legislation in Washington that would eventually repeal the state’s retail sales tax treatment of temporary staffing services was signed into law by Gov. Bob Ferguson. The legislature passed the bill shortly before adjourning for the year March 12.

Last year, Washington lawmakers enacted new tax provisions that reclassified temporary staffing services as retail sales, part of a broader effort to raise state revenue by expanding the sales tax base to certain services. ASA and other industry representatives raised concerns that applying retail sales tax to staffing services would effectively increase the cost of labor by 6.5%, plus local taxes, particularly affecting industries that rely heavily on contingent labor. Health care providers, manufacturers, logistics companies, and other employers warned that the change could make it more expensive to address workforce shortages.

The bill, SSB 6346, was one of several technical correction bills considered this session. Among other provisions, the bill creates targeted exemptions for certain sectors, including hospital-based clinical staffing arrangements and certain services purchased by schools and educational entities, and includes a provision repealing the broader service tax expansion beginning Jan. 1, 2029.

On March 30, legislation in Washington that would eventually repeal the state’s retail sales tax treatment of temporary staffing services was signed into law by Gov. Bob Ferguson. The legislature passed the bill shortly before adjourning for the year March 12.

Last year, Washington lawmakers enacted new tax provisions that reclassified temporary staffing services as retail sales, part of a broader effort to raise state revenue by expanding the sales tax base to certain services. ASA and other industry representatives raised concerns that applying retail sales tax to staffing services would effectively increase the cost of labor by 6.5%, plus local taxes, particularly affecting industries that rely heavily on contingent labor. Health care providers, manufacturers, logistics companies, and other employers warned that the change could make it more expensive to address workforce shortages.

The bill, SSB 6346, was one of several technical correction bills considered this session. Among other provisions, the bill creates targeted exemptions for certain sectors, including hospital-based clinical staffing arrangements and certain services purchased by schools and educational entities, and includes a provision repealing the broader service tax expansion beginning Jan. 1, 2030.

Legislation in Virginia that would have prohibited employers in the state from requiring workers to repay money or incur financial penalties if they leave a job within a certain period of time has been defeated. The bill sought to ban the use of “stay-or-pay” contracts, defined as employment agreements requiring employees to repay certain costs if they leave a job. As drafted, the legislation would have rendered certain agreements between international recruitment agencies and foreign-educated health care professionals unenforceable. Because these agreements are foundational to the international recruitment model, the bill threatened to effectively eliminate this pathway for bringing qualified health care professionals into Virginia.

Legislation that would eventually repeal Washington’s retail sales tax treatment of temporary staffing services has passed in the state legislature and been sent to Gov. Bob Ferguson for consideration. The bill would sunset the tax treatment beginning Jan. 1, 2030.

Last year, lawmakers enacted ESSB 5814, which, among other provisions, reclassified temporary staffing services as retail sales. Effective Oct. 1, 2025, staffing firms were required to collect retail sales tax from customers. Previously, most staffing services were not subject to sales tax and were taxed only under the business and occupation tax classification for service industry businesses.

Washington’s decision to tax temporary staffing services as retail sales was part of a broader effort to raise state revenue by expanding the sales tax base to certain services. ASA and other industry representatives raised concerns that applying retail sales tax to staffing services would effectively increase the cost of labor by 6.5% plus local taxes, particularly affecting industries that rely heavily on contingent labor. Health care providers, manufacturers, logistics companies, and other employers warned that the change could make it more expensive to address workforce shortages.

The newly passed bill, SSB 6346, was one of several technical correction bills considered during the recently completed session. Among other provisions, the bill creates targeted exemptions for certain sectors—including hospital-based clinical staffing arrangements and certain services purchased by schools and educational entities—and includes a provision repealing the broader service tax expansion beginning Jan. 1, 2030.

Gov. Ferguson has up to 20 days after the legislature adjourns to sign or veto the bill. The legislature adjourned March 12.

In an unusual legislative twist, a Florida bill that that would have barred day labor firms from charging clients conversion fees will not pass this year due to lack of support in the Florida House. When the state legislature adjourns for the year later today, it will mark one of the more improbable legislative journeys for a bill that was unanimously approved earlier this month by the Florida Senate.