Slashdot Mirror


Issa Bill Would Kill A Big H-1B Loophole (computerworld.com)

ErichTheRed writes: This isn't perfect, but it is the first attempt I've seen at removing the "body shop" loophole in the H-1B visa system. A bill has been introduced in Congress that would raise the minimum wage for an H-1B holder from $60K to $100K, and place limits on the body shop companies that employ mostly H-1B holders in a pass-through arrangement. Whether it's enough to stop the direct replacement of workers, or whether it will just accelerate offshoring, remains to be seen. But, I think removing the most blatant and most abused loopholes in the rules is a good start. "The high-skilled visa program is critical to ensuring American companies can attract and retain the world's best talent," said Issa in a statement. "Unfortunately, in recent years, this important program has become abused and exploited as a loophole for companies to replace American workers with cheaper labor from overseas."

10 of 248 comments (clear)

  1. as someone who is suffering from this... by TheGratefulNet · · Score: 4, Insightful

    I can only hope that our voices are STARTING to be heard and taken seriously.

    I can't compete with an h1b. I have more experience, I know silicon valley quite well, I have good contacts and can get things done; but I'm 'an expensive american' because I have US healthcare to pay and US rents to pay, etc. and I'm not willing to have 5 other room mates and live-for-work just to stay employed.

    we need a break from this heat wave. many of us who need work cannot get it. companies stopped caring about us and refuse to even consider us. we badly need relief from this or we'll find more of us slipping into the poorest underclass and that's just an absurdity. intelligent and capable thinkers and builders unable to get work because our corp overlords sold us all out.

    I'll believe in the relief when I see it. so far, though, its killing many of us. in some ways, almost literally (I may lose my home soon, that's how bad it can get).

    --

    --
    "It is now safe to switch off your computer."
    1. Re: as someone who is suffering from this... by Anonymous Coward · · Score: 2, Insightful

      If h1-b's are supposed to be the best and brightest, why is the Indian government fighting H1-B reform in the WTO?

      Wouldn't they want to retain them?

    2. Re: as someone who is suffering from this... by undefinedreference · · Score: 2, Insightful

      H-1Bs are supposed to be the cream of the crop, not entry level people. Local recent grads in the US often find it hard to get their foot in the door in the job market because there are no entry level jobs left.

      On the other hand, the program has always needed an extremely high minimum wage limit because 60k isn't even a realistic starting salary straight out of school these days. Here in Seattle, 125k is what a fresh-out-of-school CS grad can expect to make in their first programming job. I know a community college dropout that just turned 21 that is making over 6 figures. These numbers are much lower than those seen in SV/SF.

  2. Goverment already does cost-of-living adjustments by Anonymous Coward · · Score: 3, Insightful

    The government already does cost-of-living adjustments for government employees. How hard is that to apply to H1-B? Here in Detroit, $60K probably isn't a bad minimum for H1-B workers, but it's crazy low in the San Francisco Bay. Why not tie the minimum to the region?

  3. Simple Reforms Needed by crow · · Score: 5, Insightful

    Just make two simple reforms:

    *) H1B visas convert to Green Cards after two years.

    *) Limit them to no more than 5% of the workforce for any work site.

    1. Re:Simple Reforms Needed by barc0001 · · Score: 3, Insightful

      I had a suggestion for simple reforms to Canada's Temporary Foreign Worker program that was being similarly abused, except it wasn't limited to tech workers. Specifically the TFW program was set to for companies that couldn't find Canadian talent to fill roles. It was meant to be used for things like say a high end Indian restaurant needed to bring in a chef from India with 30+ years of experience, but instead was used to replace teenage cashiers at McDonalds franchises.

      My suggestion was very simple: If you cannot find a worker for a particular job, you apply to the TFW program for a permit to hire a foreign worker to fill the slot. The government does market studies and knows what an average wage for that position is and to fill it with a TFW, the company will pay 150% of the average wage for that position to get that worker into Canada and employed. The company pays the ministry the worker's 150% wage and then the worker receives a cheque from the government at the average wage for that position as per the market study. The excess monies are used to pay for operation of the TFW program and also to set aside grants to train Canadians to fill these worker deficiencies.

      Another reason the pay goes through the TFW office was that there were several cases of the workers being underpaid once they arrived here, or in one particularly egregious instance, a McD's franchisee was also acting as the landlord for his TFWs in a house he owned and would "helpfully" pre-deduct rent and utilities from their paycheques.

      I'd be willing to bet that if the TFW and H1-B programs enacted this simple reform, the demand for foreign workers would plummet like a stone and it would still leave the door open for those businesses that actually cannot find someone in-country for a particular job.

  4. Re:It's obvious it won't accelerate offshoring by lgw · · Score: 3, Insightful

    Yeah.... But half of my department are h1b or some sort of opt/ept graduates, so this would fuckin kill my startup. No way can I pay 100K to someone with next to no experience.

    There's a whole country full of people with "next to no experience" - the country you're living in in fact, which should be quite convenient.

    --
    Socialism: a lie told by totalitarians and believed by fools.
  5. Re:Sounds good on paper... by srichard25 · · Score: 4, Insightful

    Offshore has always been cheaper than H1B onshore. If it were possible to make it work with 100% offshore, then it would have been done already.

  6. Current laws not enforced by l0n3s0m3phr34k · · Score: 5, Insightful

    Our government doesn't even enforce our current laws on H1B, what good would new ones do? A few months ago I got a "form letter" denial for a support job I applied for, didn't even get an interview. I had worked with this team for about three years, I knew their applications, escalation lists, support teams, ticketing system; in some ways I probably was more qualified than some of their current staff members. I was told by their management that they had zero actual control over HR's initial acceptance / cut system as all of the HR people are in another state thousands of miles away; HR (by unofficial policy) wouldn't take any local suggestions for who would be interviewed...the "process" didn't work like that. "The process" had HR giving them a list of pre-approved candidates, then HR would allow the local staff to interview them, and then HR would take it from there. After I got my form letter of rejection, I found an LCA for my job had been filed within a few days of my application. Using various H1B "job sites" in conjunction with the Department of Labor's LCA system, I found dozens of jobs in my area that never had any advertising on any job board, nor had any recruiters been contacted. These jobs went straight to H1B, they didn't even bother looking for a US citizen.

    Most frustratingly, there is no one to really complain to, no regulatory agency that will listen. Even when the law is broken...until it gets to the level of a Congressional hearing nothing is done. Even then, nothing happened to Disney, or SEC, or any of the other giant corps. A few donations to re-election campaigns via shadowy 501s and the issue is dropped every time. Sometimes I think the only solution is to destroy the staffing corps pushing this, and by that I mean literally set fire to the US locations of companies like Tata and Infosys.

  7. Re:It's obvious it won't accelerate offshoring by wierd_w · · Score: 5, Insightful

    I hate to sound crude or callous, but--

    The government, nor the labor force are beholden to your vision of a successful startup. The labor you seek costs money. Even if it does not cost you, it still costs that money. Preventing abuse of h1b labor prevents the sideloading of that cost onto the rest of society. If your startup requires impossible wages (wages only possible via h1b or other wage shenanigans) then your startup is not really viable as a business venture. Hard thing to swallow, but that is the way it is.

    As an employer, the sooner you understand that you too have to negotiate at the hiring table, and that you can't get AAA+ talent for D- wages, the better. You are beholden to the economy, the same as the rest of us. We only succeed when we both benefit.

    My suggestion to you: hire new grads at new grad pay. Hire a small number of AAA+ people, and use them to improve the quality of your new grad workers. Set company goals that are attainable with that arrangement, and reward employees that exceed those expected goals.

    The age of getting the best while paying next to nothing are nearly gone forever. Plan for that future. Hire the lackluster, at lackluster pay, then improve them. Contrary to what you have been trained in MBA school, employees are a valuable asset that you invest in. If you are good to your people, they will be good to you. Treat them like disposable trash, and they will dump you in a minute, the soonest they can, and spit on your memory.