If you have followed my blog, you know that I am in favor of H1-B visas (my previous post on the topic is here). For those who are unfamiliar, they are visas provided by the US government to allow skilled workers to work in the US for between three and six years (learn more about H1-B’s here). Today Business Week is reporting on a report from the U.S. Citizenship & Immigration Services (USCIS) saying that 13% of all H1-B applications are fraudulent and another 7% have “technical violations”. This “news” should come as a surprise to no one.
Why should this not be a surprise? When you have software engineers that make an average of $700 a month in their home country, compared to an average of $5,000 in the US, basic math tells you that you can pay the guy from overseas double, let him take twice as long and still come out ahead by a large margin. Tie hands of regulators to investigate abuses and you have a system that is begging to be abused.
Now the H1-B program has rules to protect both US workers and recipients of H1-B’s. According to the law companies are required to pay the “prevailing wage” for the worker. However, the U.S. General Accounting Office has pointed out that the enforcement of these rules is difficult at best (see the report from the US GAO here). In the report, it points out that the Department of Labor (DOL) has only limited abilities to investigate abuses in the H1-B visa program. For example, the DOL can only question certain documentation for only for “completeness and obvious inaccuracies” and is unable to question anything else, regardless what it is. However, when a claim is made that starts an investigation, the likelihood of a violation being found is astronomically high (ranging from 75% to 92%).
The above is just one example of how the system is set up to fail. Fortunately, action is on it’s slow way through Congress. There is currently a bill sponsored by Sen. Richard Durbin [D, IL], Sen. Charles Grassley [R, IA] and Sen. Bernard Sanders [I, VT] in the Senate that is attempting to close the loopholes discussed above (see the full text of the bill here). This bill allows for the DOL to initiate investigations into H1-B issues as well as increases penalties for violations under the law. Unfortunately, it doesn’t seem to be high on anyone’s priority list given the election year.
I am a supporter of H1-B visas because they help fill an important talent void in the US. However, without loopholes being filled and the ability to enforce the law given the the appropriate parties, the system that was meant to keep the US competitive in the global economy and a leader in innovation will only serve as a program for companies to get cheap labor.
What are your thoughts on H1-B’s? Do you have an H1-B? Share your thoughts or experiences with H1-B’s in the comments.