Clubs are struggling with an unprecedented labor shortage. As a result, more clubs are turning to foreign nationals to fill vacancies.
It was not long ago that the only clubs that utilized foreign nationals were larger ones in traditional seasonal areas (e.g., Southeast Florida, Nantucket, Michigan’s Upper Peninsula, etc.). Now, clubs large and small, seasonal and year-round, rural, suburban, urban and everything in between are considering visa holders to fill otherwise empty roles.
Let’s Start with the Basics
There are two primary visas that clubs utilize to fill roles during their busy seasons.
J-1 visa. The J-1 visa was created as a cultural experience opportunity to allow recent foreign national university graduates to come to the United States to work in a role related to their education while learning about the U.S. culture. There are two subcategories of J-1 visas: the four-month summer work and travel J-1 (typically utilized by summer-season clubs) and the 12-18-month trainee J-1 (typically used as a management training tool by winter-season clubs).
H-2B visa. While this is a cost to the club—the club must pay all costs related to the program other than housing—the H-2B visa was created as a work visa and the workers are expected to work. A club can apply for H-2B visas for the duration of their season for a period of up to 10 months.
Outlook for the Upcoming Winter Season
Many clubs are already well into their current winter seasons. As they are seeing, things can be quite frustrating when it comes to U.S. visas.
Clubs that utilize J-1 visa holders are experiencing consulate/embassy delays and, most recently, issues surrounding the new vaccination mandate. J-1 holders seeking to enter the U.S. must obtain their visa at a U.S. consulate or embassy outside the United States. Due to COVID-19, staffing shortages and recently expired travel restrictions in some countries (e.g., South Africa), there are major delays at many consulates and embassies. Additionally, those entering the U.S. must be fully vaccinated due to the recent White House mandate and getting vaccinated can be difficult in some countries.
H-2B visas have also experienced consulate and embassy delays; although, in most cases those delays have not been as significant as those for J-1 visa holders. The biggest issue for this season has been the numerical cap for later-season start dates and recruiting struggles for in-country workers.
Regarding the cap, H-2B visas are numerically limited by law. Thirty-three thousand H-2B visas are available from October 1 to March 31 and another 33,000 are available from April 1 to September 30. The cap only applies to workers coming in from outside the country. Historically, the cap was not a problem for winter-season clubs. However, due to unprecedented demand for H-2B visas, the cap was reached in 2021 earlier than ever before and impacted clubs with December 1 start dates and later. This left some clubs scrambling to find in-country workers. Finding in-country workers can be difficult, as there are only so many available. This has unfortunately left some clubs with vacant positions heading into their busy seasons.
Outlook for the 2022 Summer Season
Summer 2022 is set to see the most applications ever filed for H-2B visa petitions. With the staffing crisis affecting seasonal industries coast-to-coast, it is not just clubs that are experiencing shortages. This is leaving more and more businesses to file H-2B visa petitions, and unfortunately, most businesses fall into the summer season. As a result, we anticipate that the odds of bringing workers into the U.S. under the summer-season cap is less than 50%. And for those turning to in-country workers, the demand is going to be at an all-time high. Clubs should be prepared to see H-2B workers asking for high wages and entertaining multiple job offers. Focused and customized recruiting is going to be more important than ever as you show the value of your club, its culture, and your commitment to your staff.
On the J-1 visa front, the same issues of consulate delays and vaccination requirements are certain to linger; though, as more time goes by, consulate and embassy delays will hopefully decrease.
Solutions
The good news is that there are solutions to help through these issues. Club organizations like the National Club Association provide you with a platform to connect with other clubs, understand advocacy efforts, and learn about pressing issues. There is also a new tool available for clubs, Seasonal Connect, to find H-2B, J-1 and American workers, and to find opposite season clubs and hospitality organizations to forge recruiting relationships.
Staffing is hard, but it can be easier with foreign workers. The key is to understand the landscape and that recruiting is still a tall task when it comes to international workers.
Keith Pabian is the Founding Partner of Pabian Law, LLC, and Seasonal Connect. He is an NCA board director. He can be reached at [email protected]. For information on Seasonal Connect, visit seasonalconnect.com.