The Guardian and
NBCNews Bay Area are reporting the results of a year-long investigation conducted by
The Center for Investigative Reporting, into the use of highly-skilled immigrant workers employed by big tech companies under the H-1B Visa program:
A yearlong probe by The Center for Investigative Reporting found that porous federal oversight allows these labor brokers to financially exploit workers with little fear of detection.
It turns out that those that are caught can continue to survive and thrive – including on the taxpayers’ dime.
The federal government has awarded contracts and other benefits worth nearly half a billion dollars since 2000 to technology labor brokers and tech firms cited for violating laws related to the temporary visa program known as H-1B.
Many tech company leaders have been fighting to either end or completely open up the
H-1B program.
While outsourcing has become an accepted form of doing business for American companies, H-1Bs have gained more political attention in recent years as tech-backed groups including Mark Zuckerberg’s FWD.us have lobbied for changes to the H-1B cap as part of comprehensive immigration reform. Microsoft, Intel and Facebook were among the top five clients that filed lobbying reports regarding immigration in 2013, according to data from the Center for Responsive Politics.
The H-1B program gives out a set amount of Visas to companies every year, in order to hire/attract the best and brightest around the world. The argument for it is that it allows the U.S. to keep jobs on our soil, it brings in more talent–making the U.S. more competitive, and proponents of the program say that, when working correctly, it boosts the market for American jobs.
The problem is the kinda slavery thing. And the lack of meaningful punishments. And the lack of general oversight. How bad is it?
Since 2000, nearly 20 percent of the brokers and firms cited for violating the visa program have nevertheless received federal contracts, payments or other government support for their businesses. The Department of Homeland Security and the Department of Defense are among major agencies that have looked past these violations or did not check the record.
Even brokerages facing the ultimate penalty for breaking labor laws – debarment from the temporary visa program – found ways back in.
The investigation is a harrowing read. It details the bullying, the terrorizing, and general shady tactics that these companies employ to exploit their workforce. In the end these practices hurt the immigrants searching for better opportunities as well as the American worker. The fact that these companies fail to really employ immigrants at a prevailing wage means less jobs for Americans with similar skill sets–
unless you want to work for pennies on the dollar.
“We’re seeing companies that say that they’re paying someone $50,000 or whatever, but they’re actually making the employees pay for themselves to come to the U.S., travel expenses, living expenses,” Hutchinson said.
IBM settled allegations with the DOJ last year that the company had posted jobs with a preference for H-1B and F-1 visa holders, agreeing to pay the government $44,000 in civil penalties.
“The idea behind the H-1B visa is you’re supposed to protect American workers by setting a prevailing wage and not letting it be undercut,” Hutchinson said. “But what I’m seeing is the prevailing wage is undercut.”
While the system clearly needs reform, the cynic in me wonders if those wanting reform are motivated by the desire to stay competitive by exploiting the same loopholes for cheap labor.