The H-1B program has caused a number of criticisms.
No labor shortages
Paul Donnelly, in a 2002 article in Computerworld, cited Milton Friedman as stating that the H-1B program acts as a subsidy for corporations. Others holding this view includeDr. Norman Matloff, who testified to the U.S. House Judiciary Committee Subcommittee on Immigration on the H-1B subject. Matloff’s paper for the University of Michigan Journal of Law Reform claims that there has been no shortage of qualified American citizens to fill American computer-related jobs, and that the data offered as evidence of American corporations needing H-1B visas to address labor shortages was erroneous. The United States General
Accounting Office found in a report in 2000 that controls on the H-1B program lacked effectiveness. The GAO report’s recommendations were subsequently implemented.
High-tech companies often cite a tech-worker shortage when asking Congress to raise the annual cap on H-1B visas, and have succeeded in getting various exemptions passed. The American Immigration Lawyers Association (AILA), described the situation as a crisis, and the situation was reported on by the Wall
Street Journal, BusinessWeek andWashington Post. Employers applied pressure on Congress. Microsoft chairman Bill Gates testified in 2007 on behalf of the expanded visa program on Capitol Hill, “warning of dangers to the U.S. economy if employers can’t import skilled workers to fill job gaps”. Congress considered a bill to address the claims of shortfall but in the end did not revise the program. According to a study conducted by John Miano and the Center for Immigration Studies, there is no empirical data to support a claim of employee worker shortage. Citing studies from Duke, Alfred P. Sloan Foundation, Georgetown University and others, critics have also argued that in some years, the number of
foreign programmers and engineers imported outnumbered the number of jobs created by the industry. Organizations have also posted hundreds of first hand accounts of H-1B Visa Harm reports directly from individuals negatively impacted by the program, many of whom are willing to speak with the media.
Studies carried out from the 1990s through 2011 by researchers from Columbia U, Computing Research Association (CRA), Duke U, Georgetown U, Harvard U,
National Research Council of the NAS, RAND Corporation, Rochester Institute of Technology, Rutgers U, Alfred P. Sloan Foundation, Stanford U, SUNY Buffalo,
UC Davis, UPenn Wharton School, Urban Institute, and U.S. Dept. of Education Office of Education Research & Improvement have reported that the U.S. has been producing sufficient numbers of able and willing STEM (Science, Technology, Engineering and Mathematics) workers, while several studies from Hal Salzman, B.
Lindsay Lowell, Daniel Kuehn, Michael Teitelbaum and others have concluded that the U.S. has been employing only 30% to 50% of its newly degreed able and willing STEM workers to work in STEM fields. A 2012 IEEE announcement of a conference on STEM education funding and job markets stated “only about half of those with under-graduate STEM degrees actually work in the STEM-related fields after college, and after 10 years, only some 8% still do”.
Wage depression is a chronic complaint critics have about the H-1B program: some studies have found that H-1B workers are paid significantly less than U.S. workers. It is claimed that the H-1B program is primarily used as a source of cheap labor. A paper by Harvard Professor George J. Borjas for the National
Bureau of Economic Research found that “a 10 percent immigration-induced increase in the supply of doctorates lowers the wage of competing workers by about 3 to 4 percent.”
The Labor Condition Application (LCA) included in the H-1B petition is supposed to ensure that H-1B workers are paid the prevailing wage in the labor market, or the employer’s actual average wage (whichever is higher), but evidence exists that some employers do not abide by these provisions and avoid paying the
actual prevailing wage despite stiff penalties for abusers.
Theoretically, the LCA process appears to offer protection to both U.S. and H-1B workers. However, according to the U.S. General Accounting Office, enforcement limitations and procedural problems render these protections ineffective. Ultimately, the employer, not the Department of Labor, determines what sources determine the prevailing wage for an offered position, and it may choose among a variety of competing surveys, including its own wage surveys, provided that such surveys follow certain defined rules and regulations.
The law specifically restricts the Department of Labor’s approval process of LCAs to checking for “completeness and obvious inaccuracies”. In FY 2005, only about 800 LCAs were rejected out of over 300,000 submitted. Hire Americans First has posted several hundred first hand accounts of individuals negatively impacted by the program, many of whom are willing to speak with the media.DOL has split the prevailing wage into four levels, with Level One representing about the 17th percentile of wage average Americans earn. About 80 percent of LCAs are filed at this 17th percentile level. This four-level prevailing wage can be obtained from the DOL website, and is generally far lower than average wages.The “prevailing wage” stipulation is allegedly vague and thus easy to manipulate, resulting in employers underpaying visa workers. According to Ron Hira, assistant professor of public policy at the Rochester Institute of Technology, the median wage in 2005 for new H-1B information technology (IT) was just $50,000, which is even lower than starting wages for IT graduates with a B.S. degree. The U.S. government OES office’s data indicates that 90 percent of H-1B IT wages were below the median U.S. wage for the same occupation.In 2002, the U.S. government began an investigation into Sun Microsystems’ hiring practices after an ex-employee, Guy Santiglia, filed complaints with the U.S. Department of Justice and U.S. Department of Labor alleging that the Santa Clara firm discriminates against American citizens in favor of foreign workers on H-1B visas. Santiglia accused the company of bias against U.S. citizens when it laid off 3,900 workers in late 2001 and at the same time applied for thousands of visas. In 2002, about 5 percent of Sun’s 39,000 employees had temporary work visas, he said. In 2005, it was decided that Sun violated only minor requirements and that neither of these violations was substantial or willful. Thus, the judge only ordered Sun to change its posting practices.
Risks for employees
Historically, H-1B holders have sometimes been described as indentured servants, and while the comparison is no longer as compelling, it had more validity prior to the passage of American Competitiveness in the Twenty-First Century Act of 2000. Although immigration generally requires short- and long-term visitors to disavow any ambition to seek the green card (permanent residency), H-1B visa holders are an important exception, in that the H-1B is legally acknowledged as a possible step towards a green card under what is called the doctrine of dual intent.
H-1B visa holders may be sponsored for their green cards by their employers through an Application for Alien Labor Certification, filed with the U.S. Department of Labor. In the past, the sponsorship process has taken several years, and for much of that time the H-1B visa holder was unable to change jobs without losing their place in line for the green card. This created an element of enforced loyalty to an employer by an H-1B visa holder. Critics alleged that employers benefit from this enforced loyalty because it reduced the risk that the H-1B employee might leave the job and go work for a competitor, and that it put citizen workers at a disadvantage in the job market, since the employer has less assurance that the citizen will stay at the job for an extended
period of time, especially if the work conditions are tough, wages are lower or the work is difficult or complex. It has been argued that this makes the H-1B program extremely attractive to employers, and that labor legislation in this regard has been influenced by corporations seeking and benefiting from such advantages.Some recent news reports suggest that the recession that started in 2008 will exacerbate the H-1B visa situation, both for supporters of the program and for those who oppose it. The process to obtain the green card has become so long that during these recession years it has not been unusual that sponsoring
companies fail and disappear, thus forcing the H-1B employee to find another sponsor, and lose their place in line for the green card. An H-1B employee could be just one month from obtaining their green card, but if the employee is laid off, he or she may have to leave the country, or go to the end of the line and start over the process to get the green card, and wait as much as 10 more years, depending on the nationality and visa category.
The American Competitiveness in the Twenty-First Century Act of 2000 provides some relief for people waiting for a long time for a green card, by allowing H-1B extensions past the normal 6 years, as well as by making it easier to change the sponsoring employer.
The Out-Sourcing/Off-Shoring Visa
Further information: IT Body Shops
In his floor statement on H-1B Visa Reform, Senator Dick Durbin stated “The H-1B job visa lasts for 3 years and can be renewed for 3 years. What happens to those workers after that? Well, they could stay. It is possible. But these new companies have a much better idea for making money. They send the engineers to
America to fill spots–and get money to do it–and then after the 3 to 6 years, they bring them back to work for the companies that are competing with
American companies. They call it their outsourcing visa. They are sending their talented engineers to learn how Americans do business and then bring them back and compete with those American companies.” Critics of H-1B use for outsourcing have also noted that more H-1B visas are granted to companies headquartered in India than companies headquartered in the United States.Of all Computer Systems Analysts and programmers on H-1B visas in the U.S., 74 percent were from Asia. This large scale migration of Asian IT professionals to the United States has been cited as a central cause for the quick emergence of the offshore outsourcing industry.In FY 2009, due to the worldwide recession, applications for H-1B visas by off-shore out-sourcing firms were significantly lower than in previous years, yet 110,367 H-1B visas were issued, and 117,409 were issued in FY2010.
Social Security and Medicare taxes
H-1B employees have to pay Social Security and Medicare taxes as part of their payroll. Like U.S. citizens, they are eligible to receive Social Security benefits even if they leave the United States, provided they have paid Social Security payroll taxes for at least 10 years. Further, the U.S. has bilateral agreements with several countries to ensure that the time paid into the U.S. Social Security system, even if it is less than 10 years, is taken into account in the foreign country’s comparable system and vice versa.
Departure Requirement on Job Loss
If an employer lays off an H-1B worker, the employer is required to pay for the laid-off worker’s transportation outside the United States.If an H-1B worker is laid off for any reason, the H-1B program technically does not specify a time allowance or grace period to round up one’s affairs irrespective of how long the H-1B worker might have lived in the United States. To round up one’s affairs, filing an application to change to another non-immigrant status may therefore become a necessity.If an H-1B worker is laid off and attempts to find a new H-1B employer to file a petition for him, the individual is considered out of status if there is even a one-day gap between the last day of employment and the date that the new H-1B petition is filed. While some attorneys claim that there is a grace period of 30 days, 60 days, or sometimes 10 days, that is not true according to the law. In practice, USCIS has accepted H-1B transfer applications even with a gap in employment up to 60 days, but that is by no means guaranteed. Some of the confusion regarding the alleged grace period arose because there is a 10-day grace period for an H-1B worker to depart the United States at the end of hisauthorized period of stay (does not apply for laid-off workers). This grace period only applies if the worker works until the H-1B expiration date listed on his I-797 approval notice, or I-94 card. 8 CFR 214.2(h)(13)(i)(A).
The United States Citizenship and Immigration Services “H-1B Benefit Fraud & Compliance Assessment” of September 2008 concluded 21% of H-1B visas granted originate from fraudulent applications or applications with technical violations. Fraud was defined as a willful misrepresentation, falsification, or omission of a material fact. Technical violations, errors, omissions, and failures to comply that are not within the fraud definition were included in the 21% rate. Subsequently, USCIS has made procedural changes to reduce the number of fraud and technical violations on H-1B applications.In 2009, federal authorities busted a nationwide H-1B Visa Scam.
In addition to H-1B visas, there are a variety of other visa categories that allow foreign workers to come into the U.S. to work for some period of time.
L-1 visas are issued to foreign employees of a corporation. Under recent rules, the foreign worker must have worked for the corporation for at least one year in the preceding three years prior to getting the visa. An L-1B visa is appropriate for non-immigrant workers who are being temporarily transferred to the United States based on their specialized knowledge of the company’s techniques and methodologies. An L-1A visa is for managers or executives who either manage people or an essential function of the company. There is no requirement to pay prevailing wages for the L-1 visa holders. For Canadian residents, a special L visa category is available.
TN-1 visas are part of the North American Free Trade Agreement (NAFTA), and are issued to Canadian and Mexican citizens. TN visas are only available to workers who fall into one of a pre-set list of occupations determined by the NAFTA treaty. There are specific eligibility requirements for the TN Visa.
E-3 visas are issued to citizens of Australia under the Australia free-trade treaty.
H-1B1 visas are a sub-set of H-1B issued to residents of Chile and Singapore under the United States-Chile Free Trade Agreement of 2003; PL108-77 § 402(a)(2)(B), 117 Stat. 909, 940; S1416, HR2738; passed in House 2003-07-24 and the United States-Singapore Free Trade Agreement of 2003; PL108-78 § 402(2), 117 Stat. 948, 970-971; S1417, HR2739; passed in House 2003-07-24, passed in senate 2003-07-31, signed by executive (GWBush) 2003-05-06. According to USCIS, unused H-1B1 visas are added into the next year’s H-1B base quota of 58,200.
One recent trend in work visas is that various countries attempt to get special preference for their nationals as part of treaty negotiations. Another trend is for changes in immigration law to be embedded in large Authorization or Omnibus bills to avoid the controversy that might accompany a separate vote.
H-2B visa: The H-2B non-immigrant program permits employers to hire foreign workers to come to the U.S. and perform temporary nonagricultural work, which may be one-time, seasonal, peak load or intermittent. There is a 66,000 per year limit on the number of foreign workers who may receive H-2B status.
H1B tactics for Green Card:
Sometimes you are interviewed for a 100% matching job, you perform greatly in the interview expecting an offer but you never hear a feedback from them – That’s an interview intended to sponsor Green Card for their employee. It was not to disqualify you but prove they interview many in that area but could not select anyone, so must process GC to their person to keep him permanently since none nearby that were interviewed are a fit
Watch this Video: Permanent Fake Job Ads defraud Americans to secure GC:
Voice of People:
i) Average salary for a programmer in the Philippines is about $7,000/year, a programmer in India makes about $14,000/year while average salary for a programmer in the US is about $90,000/year. Obviously a US company can import a programmer from one of the above mentioned countries and save a shit ton of money, nothing wrong with that logic, it has nothing to do with qualifications and for your information most universities in America are much better than that of the Philippines and India.
ii) As an unemployed IT Specialist I can tell you if it gets much worse, I’m gonna hunting. And it won’t be for wildlife.
“H1B Holders have sometimes been described as indentured servants”
Pushing American Middle class to NO CLASS?
Dragging Indian Middle Class into modern bonded cheap labor force?
There is lot of noise on this in India.
Kumar Sreenivas Pandruvada American Corporates, Government and Indian Employers and Indian and other unethical illegal layers are enemies but not H1Bs. Of, course some pay and enter are also enemies. A day will come Indians may need to leave USA.
Virgil Bierschwale sad thing is, for everybody hired because of this, an American will be forced out of a job simply because the jobs are full and we’ve only created 400,000 jobs since 1999
Lisa Garcia ·
It sure looks like India has better job opportunities than the United States does.
Those companies showing layoffs that i posted links to are all companies that bribed our corrupt government to bring in H-1B visa workers and other types of visa workers…they of course lied about a shortage of American workers…one only has to look at the layoffs to see one cannot have a shortage of workers while letting so many workers go. Layoffs are different than being fired of course. A layoff means the person doing his/her job was let go through no fault of their own. While being fired means the employee was not doing a good job……as you can see these people being let go were through layoffs, NOT firing….meaning they were NOT lazy or unskilled, as has been told to the citizens of India and elsewhere about U.S. citizens.
There are many more companies doing the exact same thing. If I posted links to all of them it would probably take me all day, and I still would not have been able to list them all. This situation of course hurts American citizens who were born here, but it also hurts immigrants who decided to stay and got their green card as well. Make no mistake… I have nothing against immigrants, unless they lied or shared in illegal activity. Many U.S. citizens are indeed now homeless and poor….they couldn’t find another job…people now outnumber the jobs available by a large margin…it is sad…but what is sadder is the lies being told, which is why I showed so many links to show the truth.
We are just pawns to our corrupt governments and corrupt corporations. I would not be surprised that if the government of India and corporations there one day decide it’s own citizens should be replaced with cheaper workers from the United States or elsewhere. One day the corporations in India may decide they want more money for themselves and less for their workers…as has been done here. Then they may start LIES about the workers of India and call them dumb or lazy as a means to replace them….this is what happened here….why should it not happen there?? People of India need to ask themselves this question. After all, the corruption is not limited to the United States…the corruption is already Global…some refer to it as the New World Order…and having read much I see much truth in it. The HONEST and non greedy citizens of the world have to Unite to stop this…it seems to be the only way…but how to do this when so many fell for the lies, or would rather fight with each other than to see their true enemy?
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