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GAO, DOJ seek H-1B visa reforms

Patrick Thibodeau | Jan. 14, 2011
Feds want employers to post to Web plans to hire H-1B workers; DOJ seeks labor market test prior to H-1B hires

Among the findings is that H-1B workers are "often not paid wages associated with the highest skills in their fields." The report found that 54% of the workers from June 2009 to July 2010 "were categorized as entry-level positions and were paid at the lowest pay grades allowed under prevailing wage levels."

A comparison of median annual salaries reveals that for systems analysts, programmers and other computer-related workers, H-1B workers tend to earn less than U.S. workers, but some of this salary gap appears explained by differences in ages and experience, the GAO noted.

The widest wage differential is for H-1B workers aged 40 to 50. They had median reported earnings that were significantly lower than the median earnings of U.S. workers in those IT occupations, the GAO reported.

But the GAO wasn't able to determine, definitively, the impact of H-1B visa use on the wages of other workers.

An often argued claim is that H-1B use is regulated by the economy, but the GAO said such a relationship to wages can't be inferred. [The] number of H-1B petitions tends to rise when wages and employment for U.S. workers are rising (although the number of approvals is limited by the H-1B cap), and to fall when wages and employment for U.S. workers are falling. However, this relationship does not reveal what the wage rates and employment rates of U.S. workers would have been in the absence of H-1B workers."

The GAO also found that over the past decade, less than 1% of all employers with approved petitions were approved to hire almost 30% of all H-1B workers. At least 10 of the top 85 H-1B-hiring employers in 2009 were outsourcing companies, of which six have headquarters or operations in India.

The GAO report also mapped the frustration of the business community in hiring H-1B workers. It includes criticism directed at the government lottery to pick H-1B visa recipients once the cap is exceeded.

Businesses are unable to prioritize their candidates for the lottery, the GAO pointed out. The report also describes how some businesses, unable to get an H-1B visa for a job candidate, have employed the worker overseas and then transferred that person to the U.S. on an L-1 visa.

Visa-related paperwork was also a complaint, especially involving a government's "Request for Evidence," which is a formal request by the government for supporting documentation in a visa application.

"An immigration lawyer at a multinational pharmaceutical company said that agency requests for evidence do not always appear to be 'thoughtful,' and cited a Request for Evidence that demanded a review of the qualifications of an applicant who had received a science degree from Oxford University," the GAO reported.


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