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Report Indicates Widespread H-1B Visa Fraud

Vrst1013 notes a Business Week account of a government report examining fraud in the H-1B program. The US Citizenship and Immigration Services just released a report to members of the Senate Judiciary Committee examining issues with fraud and technical violations within this program. Based on a sample size of 246 H-1B petitions, 13.4 percent showed fraud and 7.3 percent showed technical violations, for an overall violation rate of 20.7 percent. There was slso evidence of payment below the prevailing wage, offers of non-existent jobs, and fraudulent documentation. "'The report makes it clear that the H-1B program is rife with abuse and misuse,' says Ron Hira, [a professor] at the Rochester Institute of Technology ... However, both Presidential candidates, Senator Barack Obama and Senator John McCain, have said they support expanding the program."

17 of 397 comments (clear)

  1. It's not so blasted difficult... by Wardish · · Score: 5, Insightful

    I'm continually amazed at the H1B visa issue.

    Took me 5 min's to come up with a reasonable solution to the issues.

    Original Problem: Some companies need skilled employee's that are not available in the US.

    Created problems: Many companies like hiring folks from elsewhere because even with associated costs of the visa and transportation it's still a huge cost savings over paying US wages for the same work.

    Solution: Have a relatively unlimited pool of available H1B visa's. With the provision that anyone hired must be paid 110% of the prevailing US wage for the work.

    That way if they really need skills not available they can get them but there is a real financial incentive to use local talent.

    Ward

    --
    Ward

    . Silence! Be thankful thy species is unpalatable! .
    1. Re:It's not so blasted difficult... by Jah-Wren+Ryel · · Score: 5, Insightful

      I suspect that the root of the "prevaling wage" problem is a complete lack of enforcement. There is zero budget for oversight - even the funding for this study took over a decade of bitching by the little guys before it was included in the law. I'm surprised anything actually came of it, much less getting enough publicity to be duped on slashdot.

      --
      When information is power, privacy is freedom.
    2. Re:It's not so blasted difficult... by scamper_22 · · Score: 4, Insightful

      Your created problem: Companies wills simply build overseads campuses and employ them there. Oh wait, that's already happening.

      There is no way around this. Our societies will equalize. There is no justification for the average American earning 10X what another person doing an equivalanet job earns. Things will fix themselves. Either by devaluation of the dollar or by direct wage cuts.

    3. Re:It's not so blasted difficult... by Anonymous Coward · · Score: 4, Insightful

      I'm continually amazed at the H1B visa issue.

      Took me 5 min's to come up with a reasonable solution to the issues.

      Original Problem: Some companies need skilled employee's that are not available in the US.

      Created problems: Many companies like hiring folks from elsewhere because even with associated costs of the visa and transportation it's still a huge cost savings over paying US wages for the same work.

      Solution: Have a relatively unlimited pool of available H1B visa's. With the provision that anyone hired must be paid 110% of the prevailing US wage for the work.

      That way if they really need skills not available they can get them but there is a real financial incentive to use local talent.

      Ward

      Sorry, "prevailing wage" and "skilled" are weasel words. Your solution does not solve that.

      Better solution: stop using a lottery and start using an auction to distribute the visas.

    4. Re:It's not so blasted difficult... by mrops · · Score: 4, Insightful

      a better solution would be that the employee is not tied to the employer, once in US he/she can freely transfer his visa to any other company. this way they will be forced to play at the market wages and use the h1-b program when they truly cannot find local talent.

      sorry too late in night to worry punctuations and proper case.

    5. Re:It's not so blasted difficult... by CodeBuster · · Score: 4, Insightful

      The majority of the H-1B's that I've worked with have been bright, intelligent, and talented individuals with skillsets not easily available in my market.

      Then you have been fortunate, but a substantial portion of the 65,000+ H1B slots available in the United States do fall victim to the sort of abuses previously described. The temptation to "get their money's worth" from an employee with less recourse than a comperable American citizen is simply irresistable to many companies. I myself worked previously at a company (no longer work there) where at least two (2) of the staff, a washed up mechanical engineer and another who lied about being an algorithm developer on his H1B application (both from Pakistan...this was before 9/11), were basically being worked lots of overtime as telephone help desk support. Now granted, that was probably an pretty bad situation whereas you had a pretty good situation and the truth probably lies somewhere in the middle, but the cracks in the H1B system are well known and frequently exploited if my first hand experience and the second hand experiences of others are to be believed.

      It's the people that come over on the H1B program that we most need to encourage to immigrate, they are smart people who will raise the standard of living in the US.

      That is true in theory, but the present H1B system leaks like a sieve and too many of the existing slots are being taken up by opportunistic foreigners who overstate their qualifications (they will do or say anything to get into the United States even if they have to lie through their teeth, they don't care) and the employers who bring them in (they don't care if they waste a spot that some other company, perhaps their competitor, really needs for a REAL qualified engineer). This is part of the reason why there is so much pressure every year to raise the H1B cap, because many of the slots are wasted and those companies who actually want to use the H1B program for the intended purpose find themselves unable to because other less scrupulous companies have wasted some of the slots by bringing in under qualified foreign personel to work low level IT jobs that could easily be filled by even half way competent Americans.

      The reality is that for the programmer type jobs that so many rail against the employer will outsource the project if they can't find or import enough talent at the right price to complete the project on time and on budget.

      Then perhaps that is what they should do, since an American isn't going to get the job anyway and the existing H1B program has shown itself to be rife with abuses. I understand what the H1B program is supposed to accomplish, but one of the great mistakes is to judge a program or policy based upon its intentions rather than its actual results. The H1B system should either be fixed so that only qualified personel are admitted after an American could not be found to do the job or the job should be outsourced. Right now companies place fake job postings on job boards with impossibly long lists of qualifications that almost no human being could meet, just to meet the statutory requirement that no American fit the bill (of course, the H1B they eventually import doesn't match those qualifications either, but nobody actually checks up on that once the application has been approved). They make sure that their job posting fails to find an American candidate because they have already made up their minds, before even posting that they don't want to hire an American for the job. That is just one further example of the perverse sorts of incentives created by the present H1B program.

    6. Re:It's not so blasted difficult... by Jah-Wren+Ryel · · Score: 4, Insightful

      The root cause of the problem you describe is that H1B visas are in the family of "non-immigrant" visas which means they are not intended as a stepping stone to citizenship, even though in practice that's the way 90%+ of applicants see them.

      My personal opinion is that not only should they be switched to being an official immigrant visa, but immigration should be mandatory. If H1B holders really are so smart and so rare as their employers attest when hiring them, then obviously we need them in this country more than almost any other group of aliens. So bring them in, maybe even make them post a bond of like $10K that is forfeited if they don't get a green card in 5 years.

      I'm not sure about that last point without thinking it through some more, I don't want it to become a club which unscrupulous employers can use to hold back the immigrant or otherwise hold down wages. But I do want to make it less desirable for people to come to the USA for 5-10 years and then move back to their country of origin, taking their money and their skills with them. Historically the USA has been the beneficiary of a world-wide brain-drain and I think we ought to do everything we can maintain that phenomenon.

      --
      When information is power, privacy is freedom.
  2. Wow. by fuzzyfuzzyfungus · · Score: 4, Insightful

    I'm shocked, just shocked. In fact, I'm so shocked that a team of immigrants will be needed to pick my lower jaw up from the floor(no americans are available, I checked, really.).

    Seriously though. I'm not opposed to immigration in itself, after all, one of the things that America has consistently gained from is being able to attract skilled and/or motivated people from all over(and, I can't ethically get behind the "America is the land of opportunity for anybody who immigrated before date X, after date X, all immigrants are damn dirty foreigners" type arguments). What I am opposed to is horrid compromise structures that don't work all that well, and provide huge incentives for fraud. If we want immigration, let's reform the process by which people can apply for and obtain legal residency and, ideally, eventually citizenship. If we don't, then let's be straightforward about forbidding it. A bullshit half measure where corporations get to import quasi-indentured labor who are on a sorta-kinda-not-really track to naturalization is the worst of both worlds. All the stuff about immigration that makes nativist labor types nervous, without the benefits of attracting and naturalizing the best, brightest, and most motivated.

  3. Comment removed by account_deleted · · Score: 5, Insightful

    Comment removed based on user account deletion

  4. This is a problem with no solution by suman28 · · Score: 4, Insightful

    People say there aren't enough skilled workers, but from what I can, there are too many people in the IT field. We posted for an opening and we had 40+ candidates in under a couple of hours. Many had little to no skills, but who's to say that I would get a better candidate from another country? Besides, if u keep hiring candidates from outside, then how will the non-experienced people that are in the US get the experience they need? We can't support the whole world by saying, come on down. I will get you a job because I don't want to pay the American worker so much money. Well, guess what, you can pay me 15K/yr, or 100K/yr. I still have to pay the same price for everday items that I NEED, forget what I WANT. So, how do I live on the poverty scale, when I went to school in hopes of making more money in the first place?

  5. Re:I know the perfect solution by tompaulco · · Score: 4, Insightful

    What reasonable justification does the US government have for denying foreigners the same opportunities that American citizens have?
    Other countries also deny or restrict foreigners working within their borders. Why should the U.S. be any different? Even to work in Mexico, a U.S. worker has to obtain a work visa, even if only to work in the Mexican office of a U.S. owned company that happens to be a few hundred yards over the border for one day.

    --
    If you are not allowed to question your government then the government has answered your question.
  6. Re:I know the perfect solution by j0nb0y · · Score: 4, Insightful

    I was going to mod you up, but I'll comment instead so people understand.

    A big part of the problem with the H1B program is that the visas are tied to one employer. A foreigner comes over to work, finds out the job is crappy, and is stuck in the job. She can't find a better job with better pay or better hours. She either works to the end of the visa, or goes back to her country early.

    A big improvement to the program would be to cut this tie. Employers would have to compete for H1B workers, just like they have to compete for American workers. This will raise the wages of H1B workers, which will make H1B workers *less* desirable over American workers.

    There would be less H1Bs, and the ones that remained would be skilled workers whose skills are genuinely needed.

    In summary, better treatment for H1B workers will lead to better wages and more jobs for American workers.

    --
    If you had super powers, would you use them for good, or for awesome?
  7. Re:dupe by NeverVotedBush · · Score: 4, Insightful

    Good. It's nice to hear there is a fly in that ointment.

    If this country is to build up the number of technical people, it needs to pay them. Companies like Microsoft complain there aren't enough skilled people but by abusing the H1B program, they depress the pay scale, they take jobs away from qualified (but more expensive) Americans, etc.

    And with a 20% fraud rate, the H1B program needs an overhaul.

  8. Re:How to beat the system. by tompaulco · · Score: 5, Insightful

    If you do a good job, communicate well, and are well rounded you should never have to worry about a job.
    Ah, yes, I was once naive like that too and said much the same thing about others who were losing their jobs. I thought that there would always be jobs for the top 10% of their engineering class, the ones whose managers praised them. The ones who were so adaptable they could learn a new language or environment over a weekend. But I was naive and I, too, was replaced by cheap H1B labor.
    Take my advice. Learn to live on a third of your income. Then it will not hurt so bad when it happens to you.

    --
    If you are not allowed to question your government then the government has answered your question.
  9. Re:dupe by erroneus · · Score: 4, Insightful

    A degree in engineering is good. Engineering as a practice doesn't change a great deal -- technologies and techniques change and improve, but the basics will always apply. The same cannot be said of IT, however. It is a very moving target and closely linked to the technology and even vendor of choice. The basics of computer systems and principles are arguably the same, but people aren't taught that and aren't learning that... even in degree programs.

    There is more to being a doctor or a lawyer or even an engineer than merely getting a degree. There are also professional associations and boards regulating their practices and credentials. So far, IT has managed without such professional structure, but the abuses we see are just screaming for it. The workplace is still teeming with people who responded to TV commercials promising "hot careers in technology."

    Ultimately, aptitude, skill and talent need to become more measurable. There are too many people out there trying to make IT workers into assembly-line workers... but then again, I just called the classification "IT workers" and not "IT professionals" didn't I? Perhaps it could all start with names/titles.

  10. Re:MOD PARENT UP by rhsanborn · · Score: 5, Insightful

    Why are you upset about the difficult H-1B to immigrant policy? H-1B is not an immigration visa nor is it a path to citizenship. There are other programs for that. You enrolled in a non-immigrant program that wasn't designed to be a foothold for citizenship and now are complaining that the path to citizenship is difficult?

    If the skilled worker program needs to be changed, then so be it. But at the moment, it was designed as a time-limited work visa and isn't advertised by the government as a way to attain citizenship. If your employer indicated otherwise, then you were duped. If you hoped otherwise, then it's unfortunate for you. It doesn't mean you should be indignant about it.

  11. Re:dupe by SnapShot · · Score: 5, Insightful

    That's actually the opposite of what many of us want. How about: just stop letting people immigrate into the U.S. as glorified indentured servants.

    I've said it before: I'd love to have open borders for technical talent. I'm willing to compete with anyone in the world on technical ability. And, if they're better than me I guess I'll just have a chance to work for them when they start their own companies.

    However, I don't want to take part in a race to the bottom of wages and benefits. And, that's what H1-B and similar programs are designed to do.

    --
    Waltz, nymph, for quick jigs vex Bud.