The Policy memorandum on H-1B that came out on March 23, 2018, and a lot of you might have heard about yesterday, does NOT affect all Consulting Companies. It affects the case of Multiple filings by related companies for the SAME employee.
The case it is based on: Matter of S, there were two companies: One was names S and the other was names C-LLC. They both filed a petition for beneficiary X for the same end client.
Although Company S and C-LLC had different ownership, different Federal Employer Identification Number, different locations, both were filing the same petition for the same employee ie X for the same end client. What happened here was that S had a contract with end client. S filed for X with end client. Then S did a sub agreement with C-LLC. C-LLC then filed for X as well, to increase X chance of getting in. Both petitions got in: ie S and C-LLC. So C-LLC withdrew their petition. The AAO still ruled that this violated multiple filing rule for H-1B and denied the petition of S.
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