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The H-1B Swindle

Posted by Zonk on from the not-fair-use dept.

An anonymous reader writes "A new study shows that companies hire foreign workers for cheap labor, not skill." From the article:"When you look at computer job titles by state, California has one of the biggest differentials between OES salaries and H-1B salaries. The average salary for a programmer in California is $73,960, according to the OES. The average salary paid to an H-1B visa worker for the same job is $53,387; a difference of $20,573 ... H-1B visa workers were also concentrated at the bottom end of the wage scale, with the majority of H-1B visa workers in the 10-24 percentile range. 'That means the largest concentration of H-1B workers make less than [the] highest 75 percent of the U.S. wage earners,' the report notes. "

7 of 719 comments (clear)

  1. This is news? by Bob+McCown · · Score: 5, Insightful

    Anyone who has been in the computer industry for more than a few months knows this. Its prevalent everywhere. Don't let them say "there aren't enough engineers to go around", thats pure horse hockey. HIB workers arre cheaper, plain and simple.

    1. Re:This is news? by vsprintf · · Score: 5, Insightful

      Moreover, INS (now USCIS) has a prevalent wage requirement for H-1B workers. I believe that wage is about $75K for software engineers currently. Thus, any employer offering a salary below this rate to a software engineers should/would be denied the H-1B visa.

      There is a big difference between should and would. First, there is no active enforcement of H-1B program regulations. That has never been funded by Clinton or Bush, so the DOL simply doesn't do it - they don't have the people. The only way to get enforcement of the regulations is via lawsuit against a company. Second, any company hiring H-1Bs is allowed to use its own method to determine prevailing wage if they want, and the last time I checked, nearly 70% did so. They are also allowed to set the worker's title of course, so it's easy to hire an experienced programmer as an associate. The government's own study (as well as independent ones) have shown H-1Bs are paid 15% to 30% less than resident workers for the same job. (And I gave links to all this stuff the last time this subject came up, so it's pointless to do it again - it doesn't do any good.) Just because your company doesn't abuse the program doesn't mean that other companies are as ethical.

  2. OK, that's obvious on the surface... by ackthpt · · Score: 5, Interesting

    What's beneath it is probably some hideous unethical, if not illegal, practice of hiring only H-1B people into jobs.

    --

    A feeling of having made the same mistake before: Deja Foobar
  3. This is common by Anonymous Coward · · Score: 5, Interesting

    Is anyone suprised by this?
    My employeer scours the fourth world for masters degrees, sponsors thier visa, then pays them $10/hour and forces them into unpaid overtime. After all, if they complain, the company can just stop sponsoring thier work visa ..

    Unethical? Yes.
    Illigal? Not in this state.

    -Annonymousguywhodoesntwanttogetfired

    1. Re:This is common by h4x0r-3l337 · · Score: 5, Funny

      'employeer'?
      'thier'?
      'illigal'?

      And you wonder why companies hire foreign workers?

    2. Re:This is common by timeOday · · Score: 5, Insightful
      Why should IT bear the brunt? Let's just open our borders completely and see how much cops, nurses, and mailmen make after we open up their position to everybody on earth.

      Do you really think Americans should receive no preference in getting American jobs? If your vision is realized, then countries are just meta-corporations with no alleigence to their own citizens. In that case, do you think anybody will be dumb enough to join the military in their defense?

  4. Re:Also doesn't account for conversion by a1englishman · · Score: 5, Informative
    Most H1B's are folks who've been in the workforce for a relatively shorter period of time. Most H1Bs are actually dual-status, which means they are applying for a Green Card while working as an H1B. Green Card processing typically takes 4-5 years. They are not classified as H1Bs once they get their Green Cards - which coincides with them acquiring additional experience and raises.

    This argument overlooks the fact that the H1-B program is designed to allow employers to aquire talent that isn't available within the US. That would mean that these people are valuable. They shouldn't be grunts, they should be people who poses detailed and specific information which wasn't avaible in an American candidate. That being the case, the H1-Bs should be appearing near the top of the pay curve, not the bottom.