Defend the American Dream Act of 2005

Defend the American Dream Act of 2005 - Amends the Immigration and Nationality Act to require employers of H-1B (specialty occupations) nonimmigrants to use one of three specified methods (whichever results in the highest wages) to determine wages for purposes of required wage attestations. Requires such employers who previously employed one or more H-1B nonimmigrants to submit with their labor condition application (LCA) a copy of the W-2 Wage and Tax Statement filed with respect to those nonimmigrants.

Extends to 180 days the period during which certain H-1B employers must show nondisplacement of U.S. workers. Requires such employers to actively engage in recruitment efforts. Prohibits such employers from outsourcing or otherwise contracting for the placement of an H-1B nonimmigrant with another employer, regardless of whether the other employer is H-1B dependent employer.

Sets forth prior notice requirements.

Reduces the period of H-1B authorized admission to three years.

Eliminates the exemption from H-1B numerical admission limitations for certain aliens with a U.S. master's or higher degree.

Revises the H-1B definition of "specialty occupation."

Triples the H-1B petitioner fee.

Requires the Secretary of Labor to be responsible for investigations of wage complaints and allegations of fraud in the filing of LCAs.

Creates a private right of action for persons harmed by an employer's violation of labor condition requirements.

Applies the nondisplacement requirement to all H-1B employers.