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unemployment rate US tech companies paying H-1B visas holders far below market wages? New report stirs debate 

Jacque Colbert by Jacque Colbert
May 8, 2020
in Tech
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unemployment rate US tech companies paying H-1B visas holders far below market wages? New report stirs debate 
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Representational picture&nbsp | &nbspPhoto Credit score:&nbspPTI

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Key Highlights

  • The report titled “H-1B visas and prevailing wage ranges” has been co-authored by Daniel Costa and Ron Hira
  • It says that for 60 per cent H-1B positions, wage ranges have been effectively beneath that occupation’s native median wage
  • Although the H-1B guidelines enable this, the US Division of Labor has the facility to vary it, however it has not apparently used that authority

Many US tech giants are paying their H-1B employers wages which are far beneath the prevailing market charges, in response to a brand new report.

“Among the many high 30 H-1B employers are main US companies together with Amazon, Microsoft, Walmart, Google, Apple and Fb. All of them make the most of program guidelines so as to legally pay lots of their H-1B employees beneath the native median wage for the roles they fill,” the report launched by the Financial Coverage Institute mentioned, as quoted by information company PTI.

The report comes at a time when there may be rising insecurity amongst Indian H-1B visa holders as a result of the lockdown triggered by the COVID-19 pandemic has despatched unemployment within the US hovering to staggering ranges.

The H-1B is a brief non-immigrant work visa. Some 500,000 migrant employees within the US have an H-1B standing.

On Thursday, in one other warning signal for the hundreds of Indians who’ve H-1B visas or are making use of for one, a gaggle of influential Republican senators urged US President Donald Trump to droop H-1B visas for at the very least one 12 months or until the time unemployment charges attain extra regular ranges

 “As you recognize, greater than 33 million Individuals have filed for unemployment protection simply since mid-March, and roughly one-fifth of the American workforce is at the moment out of labor. This can be a gorgeous distinction in contrast with the historically-low nationwide unemployment charge of simply 3.5% in February this 12 months,” says the letter to the president signed by Senators Ted Cruz, Tom Cotton, Chuck Grassley and Josh Hawley.

Decrease wages for H-1B employees?

The report titled “H-1B visas and prevailing wage ranges” has been co-authored by Daniel Costa and Ron Hira. It says that for 60 per cent H-1B positions, wage ranges have been effectively beneath that occupation’s native median wage.

Although the H-1B guidelines enable this, the US Division of Labor has the facility to vary it, however it has not apparently used that authority.

Listed here are some findings of the report:  

  • Greater than 53,000 employers used the H-1B programme final 12 months, however high 30 H-1B employers constituted over one in 4 of all 389,000 H-1B petitions that have been authorized in 2019
  • 50 per cent of high 30 H-1B employers make use of an outsourcing mannequin to workers third-party purchasers as a substitute of direct employment of H-1B employees  
  • US-based tech corporations companies which rent H-1B employees straight have a big variety of H-1B positions within the Stage 1 or Stage 2 classes, that are the 2 lowest wage ranges  
  • Microsoft assigned 77 per cent of its H-1B positions as Stage 1 or Stage 2. Amazon assigned a complete of 86 per cent of H1 B licensed positions as Stage 1 or 2. Google, which is the fifth-largest H-1B employer, assigned 54 per cent as Stage 2.  
  • The highest 30 H-1B employers are hiring H-1B employees to fill a lot of routine (Ranges 1 and a couple of) positions that require much less expertise and peculiar expertise.

— to www.timesnownews.com

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