USCIS Associate Director for Domestic Operations, Mike Aytes, issued a memorandum, dated June 6, 2006, providing guidance on eligibility for exemptions to the H-1B cap based on employment or an offer of employment at an institution of higher education, a related or affiliated nonprofit entity, a nonprofit research organization or a governmental research organization as provided by Section 103 of AC21.

With respect to the interpretation of the statutory language "employed (or has received an offer of employment) at," the memorandum clarifies that USCIS will allow third-party petitioners -- petitioners on behalf of an H-1B worker who will work at a qualifying institution but is or will be employed by the third-party petitioner -- to claim exemption on behalf of a beneficiary, provided the petitioner establishes a logical nexus between the work performed predominantly by the beneficiary and the normal, primary or essential work performed by the qualifying institution (higher education or nonprofit or governmental research). The memorandum also provides guidance on the meaning of the statutory phrases "institution of higher education or related or affiliated nonprofit entity" and "nonprofit research organization or a governmental research organization."