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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."

33 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 clarkkent09 · · Score: 4, Interesting

      With the provision that anyone hired must be paid 110% of the prevailing US wage for the work.

      Currently, the provision is that they must be paid the prevailing wage, i.e. 100% of US worker. The problem is that the "prevailing wage" is a vague term given the variety of skills and experience candidate might have for a given position. Why do you think that extra 10% would make a difference?

      --
      Negative moral value of force outweighs the positive value of good intentions.
    2. 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.
    3. 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.

    4. Re:It's not so blasted difficult... by Anonymous Coward · · Score: 5, Interesting

      As a current H1B holder, one from India to boot, I concur with you. As for me, I have a Masters degree in Computer Science from a fairly reputed State school here and I am paid much more than "prevailing wages". Usually the firms that take advantage of the myriad loop holes in this process are small consulting firms who are unscrupulous enough to bend any rule and abuse any person (emotional, financial etc., abuse) for making a quick buck. In the 2 corporations that I have worked for, the norm is that the employees of the corporations who are on H1B usually tend to be people who are good technically, communications wise etc., and these people lead generally decent lives. In the same said corporations, there are usually contractors to do a lot of supposedly low level work (QA, low level web app dev, software maintenance etc.,). These are the people who tend to be from the said small consulting and I really feel bad for them. Trust me, the actual H1B holder in most cases is only partly to blame for this blight. The institution that sponsored him is to get the most blame, in my opinion.

      As far as how to fix this situation, as somebody suggested below, mandating 100% of pay is of no use without a decent enforcement in place. Increasing legal immigration there by reducing the wage pressures is one way to go. Increasing the scrutiny at the point of origination where this H1B was granted is another better way to go. Mostly it comes down to better enforcement. But USCIS is so busy chasing orange pickers from Florida and Chicken slaughterers from Iowa, the unscrupulous H1B shell companies keep getting away most of the time.

      Note: If you think H1B is "fraud", then you really don't know about L1 "fraud". It's even more worse and there are no limits to L1 visas.

      Note to Note: To all those people who think I am here not paying taxes and sending all my earnings to India/China/Philippines wherever, we all pay FULL taxes including Social Security and Medicare, even though I am not eligible to use those services until I get a green card.

    5. 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.

    6. 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.

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

      The problem is that the "prevailing wage" is a vague term given the variety of skills and experience candidate might have for a given position.

      Not only that, but what the employer says that the H1B employee is paid officially on the pay stub and what they are actually paid, usually due to mandatory unpaid overtime, are often two different things entirely. What is an H1B going to do, complain? If they say anything then the company will fire them and jerk their sponsorship so fast that their heads will still be spinning when their butts get kicked all the way back to their countries of origin. The H1Bs are lucky to be here, they know it and the company knows it, and thus they will put up with a lot more abuse, much more than most US Citizens would put up with, just to keep their jobs and remain here in the United States.

    8. Re:It's not so blasted difficult... by PacoSuarez · · Score: 5, Interesting

      Everything in that video is true, but you are not interpreting it correctly. The real problem is that this bizarre process is the only way to get permanent residence for a skilled worker, other than marrying an American.

      After working for my employer for 5 years on an H-1B visa, they started processing my green card. They know I am qualified, I have experience in this position, I get along with my coworkers and I am familiar with some of their trade secrets. Of course, at this point they are not interested in hiring anyone else, American or otherwise, for my position.

      The law ends up having the effect that my company now needs to hire lawyers to go through this ridiculous process. This doesn't prove that they don't have legitimate reasons to want to keep me around. If they find a good candidate in the process, they will probably try to hire him for another position. They would still have to come up with a reason why he is not a good replacement for my position specifically (my company was hiring programmers at the time).

      You probably don't fully appreciate how absurd this game can get. The lawyers try to post a list of requirements that is very specific, but not too specific because otherwise the Department of Labor may reject the application. Over the years, the lawyers get a sense for what they can ask for. For instance, I have a masters, but they couldn't require this in the ads because I don't have managerial responsibilities (you need to use lawyer logic to understand what I just said).

      If the result of all this is not the desired one, my company loses a worker that will be very hard to replace and I get to sell my house, break up with my American fiancee and move back to Europe. Well, that or I could marry in a hurry just to get the green card; but you probably wouldn't approve of that either. I guess the "upside" is that some mediocre American programmer would have an improved chance of being hired by my company because good programmers just got a little harder to find.

      The report says that 13.4% of the applications show fraud, and I don't know what to make of the 7.3% with "technical violations" (Did they spell their name inconsistently? Did they not hand in some documentation in time?). In any case, most of us are legit. I can see why you would have issues with the fraudsters, not with all of us.

    9. 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.

    10. Re:It's not so blasted difficult... by Anonymous Coward · · Score: 5, Informative

      It's extremely, EXTREMELY, unfortunate that you were modded informative for bringing up a YouTube video which has nothing to do with the H1-B process...

      You want to be up in arms about something? How about the following:

      Step 1. Get hired by a company as an H1-B because you're the best qualified person for this job.
      Step 2. Work for six years for this company. Perform well. Get promoted once or twice. Eventually take a leadership position.
      Step 3. The company, wanting to keep you because by now you've become invaluable to them, wants to help you get your green card.
      Step 4. Advertise your position as if they were willing to get rid of you the next day and replace you by a new hire.
      Step 5. Continue with the green card process.

      Can you spot some retarded-ness somewhere in this process? If so, join the ranks of the people who are outraged about the sheer fucking stupidity of the U.S. immigration process. You'll be in the company of H1-Bs like me and of companies who are trying to retain their top talent.

      (And in case you're not getting it: the PERM process decried in that video? That's Step 4.)

    11. 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.
    12. Re:It's not so blasted difficult... by Alex+Belits · · Score: 4, Funny

      You don't understand.

      In C a union of boiling oil and CEOs means that in some place you might have a bunch of CEOs, but it also may be a vat of boiling oil, and there is no way to check.

      --
      Contrary to the popular belief, there indeed is no God.
  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. 7.3% Technical Violations... by Manip · · Score: 4, Interesting

    Frankly I'm surprised ONLY 7.3% have technical violations. It is an extremely long, complex, and needless process that makes it easy to make mistakes at every step.

    There have been books dedicated JUST to the process of US visa application forms, it really is that bad and can take up to or over six months.

    I'm sure a lot of fraud goes on... But technical violations is more than likely just people struggling with the system.

  4. Re:dupe by davester666 · · Score: 5, Funny

    So, you were going for a meta-dupe, by posting two messages about this article being a dupe? Dupe-squared? Or is it a super-dupe? A dupeé?

    --
    Sleep your way to a whiter smile...date a dentist!
  5. H1B abuses have been well know for many years by walterbyrd · · Score: 5, Informative

    So many articles are coming out about the newly discovered h1b abuses, that you might think that, because everybody finally knows about the abuses, the problems will be fixed.

    Sorry folks, but the abuses have been well know for nearly a decade.

    September 2000
    Silicon Valley Uses Immigrant Engineers to Keep Salaries

    High-skilled immigrant workers in Silicon Valley are being exploited by employers. Existing immigration law sets a cap on the number the H1-B visas the industry can use to hire immigrant engineers, so this year Silicon Valley electronics giants have been pushing for more Hl-B workers. While H1-B status laborers boost corporate bottom lines, there is a devastating effect on the workers themselves.

    http://www.projectcensored.org/top-stories/articles/10-silicon-valley-uses-immigrant-engineers-to-keep-salaries/

    2002
    Enron and the H-1B American Worker Replacement Program

    H-1B visa holders are often compared to indentured servants for U.S. corporations.

    http://www.americanreformation.org/Articles/GlennJackson/EnronandH1BVisas.htm

    February 2003
    Is Anybody Out There? Is Anyone Listening?

    The H-1B recipients are often put in an exploitable position because if they lose their job, they are then deported back to their country of origin.

    http://www.rense.com/general35/wakeupNHwakeup.htm

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

    Comment removed based on user account deletion

  7. It's not just the corporations who abuse it. by Anonymous Coward · · Score: 5, Interesting

    It's not just the corporations who abuse H-1B visas. Virtually all, save a few, of the people brought over on them are useless.

    I was at one company who employed fifteen of these people at one point. All of them were very misleading when describing their abilities and experience, and thus were virtually useless to us. If anything, they actually caused us more problems that they ever solved by the mere fact that the code they wrote was pure shit.

    They were all from different universities and other academic institutions in India, so it's not like they were from a particularly bad school. Likewise, they were of different ages.

    Our main problem was that many of them claimed to be familiar with Java development on Solaris, but the closest experience they actually had was VB.NET on Windows. Some of those fellows even had a cheat sheet translating common VB.NET constructs to Java (albeit incorrectly, in many cases). The others just pestered our North American and European developers with questions and problems that even an intern would be able to quickly solve on their own.

    It's a great idea to bring the best and the brightest to America. It'll be great for our economy. The problem is, the existing programs bring over complete shit, who in turn harm our productivity terribly.

  8. Unbelievable!! by jlarocco · · Score: 4, Funny

    You mean to tell me that a government program meant to keep wages artificially inflated is being abused? I'm shocked! Corruption in government? Impossible!

    Next you'll try to tell me that big companies influence government officials to get favorable copyright legislation.

  9. 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?

  10. Abuse documented on Youtube by pkbarbiedoll · · Score: 4, Informative

    This video illustrates the problem perfectly: http://www.youtube.com/watch?v=TCbFEgFajGU

  11. Re:dupe by ChadAmberg · · Score: 5, Interesting

    Anyone else having the issue where the H1B candidates that are interviewed (over the phone, natch) are not the same people that show up on the first day at work?
    That's the new scam. The staffing companies specializing in the H1B candidates are using shills for the interviews.

  12. 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.
  13. Comment removed by account_deleted · · Score: 5, Informative

    Comment removed based on user account deletion

  14. 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?
  15. 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.

  16. 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.
  17. Re:dupe by Anonymous Coward · · Score: 5, Informative

    Since June of this year, I've seen this several times. Back in June of this year my company had three extremely talented full-time developers do a phone interview on an H1B candidate; the guy passed with flying colors... Once the guy started I didn't see him getting much work done and was always really quiet; I sat right next to him. I find this guy was given simpler and simpler tasks that he couldn't complete and the final straw was that he was asked to write a stored procedure and couldn't do it. He was even called out on the fact that he wasn't the same person in the phone interview; of course he denied it. He was terminated shortly thereafter. He was a subcontractor via another company; the company that placed him there was duped into thinking he had skills when in fact he didn't. I've also had the pleasure (if you want to call it that) of reviewing some of these "skilled candidates" resumes only to find out when it comes down to the technical (in-person) interview they don't know sh*t when they passed a phone skills-test with flying colors.

    To be honest I go to work and am in IT because I love what I do. It pisses me off to see people try to fake their way into it for either a green-card or because there is "money" here. These posers who actually make it through the screening process get into companies and cause a big mess for people like me to clean up. Even worse are some who get into management without the slightest inclining of how some of the technology is supposed to work and in return what do they do is bring in more H1B's who don't get IT.

    The government should impose some sort of punishment on companies and/or the individuals that take advantage of the system and really the entire H1B process needs to be overhauled. Maybe I should start calling Immigration and reporting these people and companies who are trying to screw over the rest of us who are legitimately trying to make a living in this economy.

  18. 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.

  19. 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.

  20. 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.
  21. Re:dupe by saider · · Score: 4, Informative

    Actually, I'd rather let them come here and get a green card instead of a visa. That way they can move about and not be tied to a company. They would be free to leave if they did not feel they were getting a fair deal.

    I find it ironic that the companies complain about a shortage and then support a program that eventually ships all this talent back out of the country. It goes to show that they are not concerned about the "talent". Their definition of a shortage is "we can't find any experienced programmers to work in San Jose for $15 an hour".

    --


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