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The Almighty Buck Government Politics

Report Indicates Widespread H-1B Visa Fraud 397

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."
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Report Indicates Widespread H-1B Visa Fraud

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  • by Wardish ( 699865 ) on Tuesday October 14, 2008 @08:13PM (#25377183) Journal

    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

    • by clarkkent09 ( 1104833 ) on Tuesday October 14, 2008 @08:16PM (#25377201)
      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?
      • by Jah-Wren Ryel ( 80510 ) on Tuesday October 14, 2008 @08:22PM (#25377247)

        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.

        • Re: (Score:3, Insightful)

          by Wardish ( 699865 )

          Exactly, there is that enforcement thing. Give the ICE folks some work to do.

        • Comment removed (Score:5, Insightful)

          by account_deleted ( 4530225 ) on Tuesday October 14, 2008 @08:42PM (#25377397)
          Comment removed based on user account deletion
          • Comment removed (Score:5, Informative)

            by account_deleted ( 4530225 ) on Tuesday October 14, 2008 @09:18PM (#25377685)
            Comment removed based on user account deletion
            • by PacoSuarez ( 530275 ) on Wednesday October 15, 2008 @12:01AM (#25378907)

              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.

              • by Jah-Wren Ryel ( 80510 ) on Wednesday October 15, 2008 @02:06AM (#25379511)

                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.

                • Re: (Score:3, Insightful)

                  by dintech ( 998802 )

                  they are not intended as a stepping stone to citizenship, even though in practice that's the way 90%+ of applicants see them.

                  Maybe I'm in the other 10% then. I think it would be fun to live in New York for a couple of years and then come back here to London. To do that I probably need an H-1B although maybe there are alternatives.

                  • Re: (Score:3, Insightful)

                    Maybe I'm in the other 10% then. I think it would be fun to live in New York for a couple of years and then come back here to London. To do that I probably need an H-1B although maybe there are alternatives.

                    L1 visa, its not quite as flexible as the H1B but it is also a non-immigrant visa.
                    And, to be blunt, visas are for the benefit of the host nation, as a foreign citizen what you want isn't particularly relevant.

            • by Anonymous Coward on Wednesday October 15, 2008 @12:39AM (#25379115)

              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.)

          • Re: (Score:3, Funny)

            I told you guys the solution already: All IT folk should form into medieval-style guilds. Then, when any employers pull this shit, we get to dump boiling oil on the CEOs.

      • by the eric conspiracy ( 20178 ) on Tuesday October 14, 2008 @08:28PM (#25377317)

        Well, there is occasional enforcement of the prevailing wage requirement (see below). Tack on another 10% fee to fund enforcement, add a H1-B Czar and make violations a felony and I think we would be good to go.

        Labor Violation

        R Square, a company that provides IT services to large and mid-sized companies, has agreed to pay $95,711 to 12 non-immigrant workers, according to a statement by the U.S. Department of Labor.

        The Department of Labor reports that an investigation turned up the fact that R Square had underpaid computer professionals between July, 2006, and July, 2007. "This case demonstrates our commitment to enforce the H-1B provisions which guard against employers undercutting American workers by underpaying temporary foreign workers," Pat Reilly, district director of the Wage and Hour division's southern New Jersey office, said in a prepared statement.

        Officers of the company, which has its offices at 5 Independence Way, were not available for comment by press time.

        R Square, 5 Independence Way, Suite 150, , Princeton 08540; 609-520-8204; fax, 609-520-8204. Anil Kumar. Home page: www.r-square.com.

      • Re: (Score:2, Insightful)

        by elendrum ( 800687 )
        The concept is that the skills are rare and require you to bring skilled people from outside the county to fill the talent/skill void. Why then are they allowed pay less? I was told that the scarcer the resource the more valuable it will be worth. So they should be paid more to work in a job with a rare skill set.

        Plus, increased value in areas with to few people would create more interest by people looking to move up in pay scale.
        • Re: (Score:3, Insightful)

          by BVis ( 267028 )

          I was told that the scarcer the resource the more valuable it will be worth.

          Not if all the consumers of said resource (employers) decide to work the angles in the system in such a way that the value of said resource is minimized, in terms of compensation. IOW, if everyone treats them like shit, they can all get away with it. It's not like they can just quit and find another job, they get deported if they do.

      • by CodeBuster ( 516420 ) on Tuesday October 14, 2008 @09:48PM (#25377937)

        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.

        • by afidel ( 530433 )
          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 (Midwest). IE exactly the kind of folks the visa's are supposed to go to. I guess I'm lucky to have worked in companies that didn't suck and weren't IT sweatshops. Most of the people I have worked with I would nominate for a green card given the chance (and several have actually been sponsored on my recommendation). It's the people that come over on the H1
          • by CodeBuster ( 516420 ) on Wednesday October 15, 2008 @12:22AM (#25379019)

            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.

      • by xero314 ( 722674 )

        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.

        The problem with the idea behind prevailing wage is that there is no enforcement of duties performed based on job title. So when a company once to pay people less they hire them as an Software Engineer I and have them do Software Engineer III or IV work. This allows companies to pay considerably less than a true prevailing wage. This happens to US workers as well, but at least in those cases the employee is free to move to other jobs or just quit without fear of deportation.

    • by scamper_22 ( 1073470 ) on Tuesday October 14, 2008 @08:46PM (#25377431)

      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.

      • by c_forq ( 924234 ) <forquerc+slash@gmail.com> on Tuesday October 14, 2008 @09:34PM (#25377827)

        There is no justification for the average American earning 10X what another person doing an equivalanet job earns.

        Yes and no. It really depends on geographic supply, demand, and cost of transportation. Also, I have to ask, why does this have to be due to the dollar declining instead of lower valued currencies increasing to the value of the dollar, or wages raising to American levels? It's not like the USA is the only country with multimillionaires and high-wage jobs (the world's richest man is a Mexican for crying out loud).

        • Companies are merely exploiting this. Take away the inequality, and they will have no situation to exploit. I am not afraid to compete for jobs on a level playing field. I've asked a few H1Bs whether they were being exploited, and they all said no. But I suppose that's about the same as asking a prostitute whether she willingly chose her line of work. On the other hand, that's a kind of can't win question of the "does this dress make me look fat?" sort.

          The first inequality is the terms of H1B employm

      • There is no justification for the average American earning 10X what another person doing an equivalanet job earns.

        Yes there is: that's what it takes to attract that person in a particular market. It's the government's job to be somewhat protective of their citizens and not license the importation of cheap labor. It's not like there's a shortage of IT workers.

    • Even easier:

      Any employer must pay a 50% payroll tax (as opposed to the normal 7.5%) for all H1B employees, with a further provision that all H1B paychecks be issued through the INS, with the employer paying the agency the full amount of the paycheck, plus a handling fee.

      Any violations of prevailing wage shall be a felony, with a mandatory minimum sentence of 5-years.

      • by Kizeh ( 71312 )

        Having been on an H1B, that's not too far from what happened. My employer refused to let me take any deductions on my W2 due to my status. Also, it should be noted, that H1B workers pay full social security and FICA taxes but aren't actually eligible to any of the benefits, so they are in fact subsidizing American employees.

        • by afidel ( 530433 )
          If you get a green card and then become a naturalized citizen do the quarters worked under the H1B program count towards SS benefits?
    • It's clear from your logic that you will NEVER be elected to public office. You just don't seem to have the 'team player' attitude.

      Clearly, if politics were left out of this process and all aspects of hiring non-local talent were held up transparently for inspection by local groups representing workers there would be no abuses or problems that news stories and a lawsuit could not fix. The problem is that now politics ARE involved... not even Spiderman or Batman can fix this. Time to scrap the whole thing an

    • by Anonymous Coward on Tuesday October 14, 2008 @09:18PM (#25377683)
      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.
      • by StandardCell ( 589682 ) on Tuesday October 14, 2008 @11:42PM (#25378793)
        I also hold an H-1B, although I'm a Canadian citizen.

        Here are two other problems:

        1. No medical checks until the very end of the (optional) green card process. Presumably, an employee running around with TB could be spreading it for years without knowing who it was. Bad for US citizens and lawful aliens. A medical exam should be completed prior to entry into the country.
        2. Lack of grace period upon job loss. I'm expected to leave in 10 days flat. If you have an apartment full of stuff, it's kinda tough to pull it all together in that timeframe, lest the BCIS agents come to take you away.
        3. Lack of typical state benefits upon job loss. If I lose my job, I pay into unemployment but I'm not allowed to collect even to get back what I paid in. Furthermore, I can't collect unemployment from my home country. That means I need to stash money away for that contingency that I could've used elsewhere.

        The solution is an indexed and independently audited visa system whereby visa holders get a provisional permanent green card pending medical, educational and experience qualifications at a rate that doesn't exceed the displacement of professionals already in the country above NAIRU, applicant-funded with additional funds set aside automatically for otherwise standard benefits of a citizen. This is the problem that Canada has in dumping a bunch of people from other countries into the workforce where there are already too few tech jobs (although Canada's bigger problem is where professionals can't be credentialed and end up having a worse standard of living than back in their home country driving a taxi).
      • Re: (Score:3, Funny)

        by rossz ( 67331 )

        Of course I don't blame the workers for the fraud. You are simply looking for the best opportunity possible for yourself and your family. Immigrants are what makes this country great. We attract the best and the brightest. Most end up staying permanently (if possible).

        A side benefit is the large number of Indian immigrants in my area has made it very easy to get excellent curry!

    • by Anonymous Coward on Tuesday October 14, 2008 @09:26PM (#25377739)

      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.

    • by mrops ( 927562 ) on Tuesday October 14, 2008 @09:36PM (#25377843)

      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.

    • It's "visas", "mins" and "employees". It really is a shame that you don't know your native language. People would probably take you seriously if you did.

  • Wow. (Score:5, Insightful)

    by fuzzyfuzzyfungus ( 1223518 ) on Tuesday October 14, 2008 @08:24PM (#25377275) Journal
    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.
    • by Anonymous Coward on Tuesday October 14, 2008 @08:43PM (#25377407)

      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.

      • by hibiki_r ( 649814 ) on Tuesday October 14, 2008 @09:37PM (#25377849)

        The H1-B system works just fine as a transition for entry level employees that studies in the US. Practical training visas don't cover enough time to handle the long initial green card period, so they get extended into H1-Bs, which will let them continue to work for you.

        Picking a random, experienced H1-B straight from India, China or Europe is no different than trying to hire an experienced programmer: It's very difficult to find a good programmer, no matter what. You really need to use references, have very good interviewing skills, or just luck out.

      • by Tablizer ( 95088 )

        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...

        I've worked with H-1B's from and in different companies also. However, I have to disagree with this assessment. They were a wide mix of skills and abilities, just like citizens. Some were pretty darn good, some barely passable. Some were also l

  • by Manip ( 656104 ) on Tuesday October 14, 2008 @08:29PM (#25377321)

    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.

    • Re: (Score:2, Interesting)

      I don't think technical violations are the main problem. The big issue is companies flooding the system with bogus requests for supposedly needed employees that will later be transplanted to less lucky companies with real needs. Outsourcing and consulting companies should be denied any immigrant visas.
    • by Kizeh ( 71312 )

      Worse than that. Both my school's international student & scholar department and several law professionals said it's so complicated, you must have it done by an actively practicing specialized immigration attorney. A general attorney or someone who hasn't done a case in a year or two is almost guaranteed to get something wrong.

  • by walterbyrd ( 182728 ) on Tuesday October 14, 2008 @08:41PM (#25377391)

    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/ [projectcensored.org]

    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 [americanreformation.org]

    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 [rense.com]

    • Most of those articles are outdated as these days h-1b workers can change jobs (for another job of the same type) and still keep their status, so an employer doesn't have the power to mistreat someone just because they don't have any options but stick with that particular employer. Yes, if they get fired and cannot find another job they will be deported, as their employment is the whole basis for their status in the USA. This is a temporary work visa, and if you're not working guess what happens. The same t
      • An employer still has a lot more power over the H1-B employee than over an American. Most H1-Bs want to be sponsored for a Green Card, and that's expensive, takes a long while, and the process gets longer with badly timed job switches mid stream. Many companies won't even bother with an H1-B transfer, so their job options are also much more limited.

        Want to lower abuse? Lower fees for the applications for H1-Bs that already have a valid H1-B for another company, and make Green Cards more available. As it is,

  • 13.4 percent showed fraud and 7.3 percent showed technical violations, for an overall violation rate of 20.7 percent.

    That's only accurate if there's NO overlap between fraud and technical violations. I'd expect the overall rate to be significantly lower.

    That said, however, ... that's still a large percentage.

    • I'm not sure that is such a large percentage. As someone pointed out this is indeed a complex procedure that changed several times in recent years and even immigration officials have trouble with it. It wouldn't surprise me if those 7.3% were mostly honest mistakes. I guess whether 13.4% indicates a "widespread fraud" depends on your definition of widespread.
    • Your comment is a decent guess based only on the summary, but if you actually read the article, you'll find a PDF link to the government report. The report specifically says that all cases of overlap are included in the fraud count, and not the technical violation count, and also gives the exact numbers. So yes, the total is correct. (The summary set off my "I don't think so"-dar the same way, but I went to check the article before I commented.)
    • There is no overlap; check out their methodology section here: http://grassley.senate.gov/private/upload/100820081-3.pdf [senate.gov]

      OMG 20% fraud is a nice headline grabber, but the actual results of the study mean that the H1-B program is working rather well:

      - Only in 15 out of 246 cases the employee is paid less than the actual prevailing wage. ( i.e. 94% are paid at or above)
      - Only 10 out of 246 applicants lied about their degrees or experience ( 96% )

      • - Only in 15 out of 246 cases the employee is paid less than the actual prevailing wage. ( i.e. 94% are paid at or above)
        - Only 10 out of 246 applicants lied about their degrees or experience ( 96% )

        # of applications submitted for 2009:
        65,000 work H1-Bs
        20,000 "advanced degrees" H1-Bs

        13.4% * 85,000 = 11,390
        7.3% * 85,000 = 6,205

        If you still want to pooh-pooh the #s involved, go ahead, but at least lets be honest with what's being talked about.
        Does the IRS sit still for a 20% rate of fraud & technical violations?

        • That would depend on what they mean by "fraud," wouldn't you say? The devil's in the details, my friend. The real fraud (such as undercutting the prevailing wage) was pretty low.

          Most of their "fraud" was things like giving the wrong address for the LCA (corporate vs workplace), or making the immigrant personally pay for the visa when the law says the companies should pay for it... See the PDF I linked to in the GPP, starting page 9 if you care.

          Sure, this fraud is unpleasant, but it's just not that big of a

        • by afidel ( 530433 )
          20% is probably low for technical violation since the US tax code is the most complex instruction manual ever invented by man. Also those violation and fraud totals are probably equivalent to the monthly numbers that cross from Mexico and most of the H1B's have at least some marketable skill beyond manual labor.
  • by jlarocco ( 851450 ) on Tuesday October 14, 2008 @08:53PM (#25377493) Homepage

    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.

  • by suman28 ( 558822 ) <suman28 AT hotmail DOT com> on Tuesday October 14, 2008 @08:58PM (#25377535)
    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?
    • My company spent A YEAR looking for quality Java programmers in Missouri. All the experienced candidates we interviewed were little better than someone fresh out of school, and, for the position, that didn't cut it. In the end, we started to look at H1-Bs, and hired one that was unhappy with his former employer. He asked for pretty good money and got it.

      At certain positions, the problem is qualifications, not salary. If you need someone to be a lead developer, limiting yourself to Americans is a great way

      • Re: (Score:3, Insightful)

        by Stiletto ( 12066 )

        If you are taking a year to look for one programmer, either:

        1. Your expectations are too high
        or
        2. Your HR person or hiring manager is overworked and doesn't have time to do a proper search.

        This country is simply overflowing with average-and-above programmers. You probably think you need THE BEST PROGRAMMER IN THE WHOLE WORLD and are trying to attract them with a salary of less than $150k/yr.

        Not all companies need a top-1%er.

      • I can give you an advice: Fire your HR or whoever does interviews.

        My company has been looking for great candidates for a long period of time. Eventually we found some people with, to put it politely, modest skills. I am sure that there are more people out there who could fill the jobs, but due to the extremely fubared interview process and lack of people with enough balls to say "no" we ended up with the folks closer to the left end of the bell curve in terms of IT skills.

        Things were pretty good when o

    • 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?

      I'd say part of that is that we're in an economic downturn and people need to look like they're looking for work to continue receiving welfare. Personally, I welcome the return of the WPA to replace the welfare syst

  • by pkbarbiedoll ( 851110 ) on Tuesday October 14, 2008 @09:08PM (#25377605)
    This video illustrates the problem perfectly: http://www.youtube.com/watch?v=TCbFEgFajGU [youtube.com]
  • by tuttle ( 973 ) on Tuesday October 14, 2008 @09:21PM (#25377705)

    Perhaps they should manage this like the auto CAFE standard. They could call it Corporate Average Salary of H1B or C.A.S.H for short. I figure they can set an average salary of say $120,000 as these are supposed to be high demand positions. Put say a 5% or so increase a year for inflation as well. Any company not meeting the average will be fined.

    With this I could foresee companies trying to sabotage their competitors by wooing their top salaried H1B's and ruining their average. Win for H1B's. Not sure if a limit on how many H1B's would be required with this in place.

    • I'd say $120,000 is way too much.

      To improve America, an immigrant must over better than an average American. So how about we use this "better than average" as a threshold and hand out green cards to anyone above it?

      1) IQ over 100 pts
      2) Speaks and reads English above average
      3) Can earn over $44,000 (annual household income)
      4) Less than $90,000 debt (per household)
      5) Younger than 37

  • by jchawk ( 127686 ) on Tuesday October 14, 2008 @09:31PM (#25377781) Homepage Journal

    As an American IT worker, I've never worried about the H-1B worker. Why? Because I'm a well rounded IT worker who has done most if not all of it. I'm not a 10 out 10 on every technology but I have a lot of 7's and 8's and I know more then most about networking, the internet and enterprise computing. I read, I study and I work hard, plus I can communicate effectively and I can lead a team. I'm no better then any other geek or nerd, I just try harder and recognize that what I do for a living is looked at as a cost center in most organizations.

    There's no magic here. If you do a good job, communicate well, and are well rounded you should never have to worry about a job. H-1B visa workers are not a threat, they just raise the bar a little bit on native American workers. Ultimately if you are the most valuable choice for a company they will pick you. It's not always about the cheapest laborer.

    • by tompaulco ( 629533 ) on Tuesday October 14, 2008 @09:59PM (#25378031) Homepage Journal
      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.
      • by afidel ( 530433 ) on Tuesday October 14, 2008 @10:53PM (#25378475)
        The tip I was told by a headhunter years ago is to expect to be out of work 1 month for every $10K in salary if the economy is bad (and it's still true, especially so if you adjust for inflation, it was in 1995 dollars originally). So you better have enough in liquid assets to cover that many months without a wage if you don't want to be slinging burgers while you look.
  • I used to advocate outsourcing as the proper alternative to H-1b visas because outsourcing doesn't violate freedom of association -- the foundation of all other human rights. However, I've recently learned that the L1 visa circumvents the H-1b visa by using outsourcing as a foot-in-the-door to get into a company which then transfers the employee to the US via the L1 visa.

    The solution: Bring down the Federal government so we can defend out land from invasion.

  • Truly I am, that foreigners would come to America to 'take our jobs'. How long has this been an issue with everyone in technical fields? It's not that employers can't find qualified citizen candidates, it's just that they don't want to pay a fair and honest wage for Americans to work for them when they can exploit desperate immigrants. You know what that's called? Indentured servitude. It's been happening in this country since the Pilgrims landed at Plymouth Rock. However, in this case, it's government sanc
  • The concept of skills, pay and visas will be largely irrelevant in the distant future. The United States was a good gig for many, but its time is up. The trend of reverse migration is slowly staring to happen and I will give it another 5-10 years before things will settle down where U.S. imports of qualified IT workers equal the exports of the same.

    There is nothing to do in the U.S. nowadays. If you are qualified, you have a great chance of getting a job in India or somewhere in Asia that pays you way

  • 'However, both Presidential candidates, Senator Barack Obama and Senator John McCain, have said they support expanding the program.'

    Along with every other significant abuse.

  • by VEGETA_GT ( 255721 ) on Wednesday October 15, 2008 @09:09AM (#25382003)

    I was in the Us for about 2 years on TN visas but would have liked to get the H1-B and would have been willing to stay longer (I am Canadian), I was working as a ldap expert doing contract work and worked with Apple and EDS on the GM contract yet when my contract company applied for my H1-B that year 3 times as many applications hit the office in the morning as there where H1-B visas for. Mine was one of them yet I never got one. Then turn around and find a guy working at a McDonnalds as I believe assistant manager who got one of the H1-B's that year. Kind of puts a sour taste in ones mouth that a skilled worker in demand can't get one but a bugger flipper can.

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