Ted Cruz, a republican, has introduced a new bill regarding H-1B salary raise issue. He, with a purpose to seek political mileage, has asked to give a minimum of 110k salary per annum to H-1B workers. It is for the tenacity to prevent employers who give more significance to cheaper labour instead of highly skilled and hard-working Americans, said Ted Cruz to the US Senate.
Such a bill can go through various atrocities to get passed by the Congress, given the fact that Republicans are not so interested in this issue. So, if this bill gets passed by the law, it would get difficult for the companies to recruit H-1B visa holders.
Cruz is so much into passing this bill in order to make some efforts in revising the H-1B visa program so that the financial companies don’t put out of place the American workers anymore. The American Jobs First Act 2015, said that Cruz is expecting a presidential ticket for White House, so it’s just an effort to repair the H-1B visa.
Also Read: H-1B Visa 2017
Cruz said,” Revising the H-1B visa program will make it easy for the Americans, skilled in the fields like science, mathematics, technology and engineering, get jobs and opportunities which previously went to cheaper foreign labour”.
Apart from Cruz, his other Republican colleague Jeff Sessions, has joined hands with him to spread this issue broadly. H-1B employers who look for H-1B visas, have to bind by the fact that they will pay the American workers exactly the same salary what they did to foreign workers, two years before the recruiting effort.
Importantly, employers will be under a period of 730 days, almost two years and cannot bring a foreign worker on H-1B visa, if there is any strike or lockout, vacations, layoffs and any type of involuntary termination. Exceptional cases like for-cause terminations are acceptable.
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The legislation said the transparency of H-1B visa applications is quite crucial and should be there to keep the process crystal clear. Real-time updating of H-1B visa applications on the part of companies, publicizing application information and any other reporting is regulated.
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The bill says that the H-1B visa program is doing nothing for the country, but only and only destroying the opportunities of highly skilled American workers. It is not working the way it is said to be. Moreover, apart from filling labour shortage, it is hampering the existing jobs of Americans.
What this bill would do is increase the waging standards of H-1B visa, prevent it from being a cheap worker program and combat the horrible training program which is the main root cause of swapping cheap foreign workers with American workers. Diversity lottery, another road for low-wage workers will also be eliminated, added the Sessions.
Do you support or oppose this rule?
Please leave a comment or share your stories / questions.
Yes, And there are also Democrat senators who agree too
As an H1B applicant I am pissed off that my chances of gaining an H1B is the same as of a person has only an undergrad degree and less than 2 years of experience. Sometimes I have to manage some of these people and usually only 3 out of 10 are actually capable of the job.
My call:
1. Enforce $110k minimum salary
2. LCA must have defined salaries (Tata is known for putting ranges like 65k to75k, and ofcourse paying the lower end)
3. Willful Violater firms should be banned for 5 years. Banned firm can not use Layering firm to recruit or file petitions
4. Site visits – interview H1B visa holder: not just the petitioner. If they say salary is $115k, ask the H1B petitioner to show proof via paystub or W2.
5. If an H1b applicant has ben denied entry (fake resumes, fake paper). the visa needs to be awarded to a vetted applicant from an earlier petition
How does this affects the existing h1b employees working in USA.Would their LCA would be revised?
110K salary in rural areas too that is too fun, educated people acts some time funny, leaving all other illegal immigrants, and target only few h1b skilled workers, that fine, too lot of companies will be go to offshore, and other countries too develop. nice approach, but its to be 250k,,, its good. 🙂
any idea what is the status of the bill?
H1b employees also comprise of Masters students who invest in American universities, study and then work in the USA.They pay their fair share of taxes and pay off student loans. They are skilled workers who graduate and contribute to the development of the community.
Besides, there is a limit on the number of H1B employees per year which keeps the immigration legal and in check. The disadvantages of reducing incentives from the H1B provision could be
1. Less job opportunities available for these students thereby leading to
2.Reduced investment in American universities by Foreign students who are smart but pay more tuition fees than the American citizen for the same degree, leading to losses for the universities and a lowering of standards and ranking of the university in the global market.
3. Companies forced to hire less skilled labor from the market causing inefficiencies and less productivity.
4. The entry of students in America from all over the world introduces competition thereby pushing the young students to aspire higher and work harder to compete in the real world which is not restricted by the borders of a country . This same talent is welcome in other parts of the world. Any nation should invest in such talent to build and improve the quality of its workforce which eventually builds local communities.
For H1b employees who do not study in America but work here have to go back after 6 years. Also, they have the skill to do the job well. While a minimum of 110k is great for a developer coming from India to build systems for a company, it would be weird that the American manager leading the team of developers is earning less or equal to the contractor which will obviously demotivate employees and force companies to raise salaries for all others ~ agree with Alex
Also, companies often hire contractors for full time jobs because of their skill and talent and do agree to pay them more so its not the minimum salary that forces companies to out source. Instead it is generally the talent available for a certain cost that motivates them to allow contractors to work for them so that companies can grow and create more jobs for the American citizens as well.
110K in silicon valley may not be an issue. But how about companies in rural areas? What is the average salary in rural areas? Not sure how this number came to these peoples mind.
80K – 90K would be fair.
90k is fair. The Bill should be passed. The corporates like Infosys/Wipro/Cognizant must pay a minimum of 90k keeping in view the cost of living. Nothing is cheap now a days.
Thanks
A
110K/year min? Ted Cruz apparently wants to destroy H-1B instead of rehabilitate it. 80-90K min would be fair.
Sure the current min wage 60K/yr is supporting highly the abuse..
The strongest candidate seemingly as of now, Hillary Clinton, has nothing against H-1B abuse in her program, why I am not surprised? 🙂
The H1B can be reformed in an easier manner. Do not recognize non-OECD/Western final degrees. Then, no one with just an Indian degree/diploma can get an H1B.
The workers straight from India- especially Southern India- cannot assimilate culturally or professionally. They do not have the abilities and attitudes that American/OECD eduation and experience give. If straight-from-India cant be hired, then the cheating and scamming will go down. As will the racism against non-Indians. Corporate India has very poor ethics or belief in integrity.
BTW, I am Indian.
VJ,
What do you MEAN by the phrase "especially Southern India ?"
Well thought out comment, goes to show the infinite wisdom and great educational background you may have received; most likely paid by your dad, earned by your grandfather.
I don't have a degree from the US despite being admitted into the top 5 business school programs here. Im from south India and know a number of others with similar background who created successful businesses here and employed many more.
Please respect others and refrain from such insults.
Guys,
Let it pass first. Infosys / Wipro / Cognizent etc have their lobbying as well. They will surely pull some strings to discard it. 😀
You need to understand that every company is built on making profit and they will do anything to keep it to themselves.
I would like for this rule to be passed! This would create a lot of paying jobs in other BRIC nations as employers move the jobs offshore and not keep the jobs here anymore.
The jobs would stay in the US. Outsourcing has not worked. If it did there would be no need of H1B's, it would go overseas
The statement 'H-1B visa program is doing nothing for the country, but only and only destroying the opportunities of highly skilled American workers' is totally absurd.
What do you guys do with the tax amount from these H1 workers. Giving it back to them?
This is something good to hear on
A bill should also be passed to increase the minimum wage of outsourced manufacturing labourers in China, Vietnam, Bangladesh. Since the year 2000, billions of dollars and milions of jobs have been lost to outsourced manufacturing jobs. Apple for instance manufacture products for dirt cheap labour, they sit on a cash reserve of 100 billion dollars and are doing little to reinvest and create more jobs in US. Government should focus on the laws which are being exploited in order to curb Corporate greed. High net worth poeple pay less then 15 % to no taxes at all and the brunt of the taxes are paid by middle class whose average wage, by the way has declined or stayed the same, over the last 50 years.
H1B has its fair share of abuse like any other policy. But there is also a legitimate need for skilled workers in the US. Unless the wealth gap and corporate greed is curbed, loopholes will always be exploited.
This is just political statement and no brain In it. It needs to be think thoroughly with the input from group of industries who actually going to have impact. It's just can't be one sided for sake of election.
Hi, Do not under estimate H1-B Technology workers as Cruz said. They're not cheap labors they're highly skilled and highly paid than so called skilled Americans. I used to have a managers in america who never gone to college but managing H1-B workers, but do not know how to create reports. Do you think they're highly skilled americans ?
Common wake up and talk which is true.
Alex has made very Valid Concerns.
This bill has pro's and cons. It's good because since the H-1B cap is fixed, higher skilled individuals will increase in the US. But there could be some serious repercussions:
1. The 110k figure is out of air. There should a treshold H1-B salary chart based on regional cost of living. People in silicon valley command higher salaries due to higher cost of living, whereas people in other areas do not.
2. (Possibility of decrease in jobs from new companies) Not all H1-Bs eat jobs. Such a rule would make it harder for foregin individuals to start comapanies and raise investments. Usually investors allow founders to draw a low salary because of higher stake of founders in the company. Just imposing 110k threshold on salary is not fair in these cases. Infact it would discourage founders from starting companies which could be detrimental to job creation in our country.
3. Possibility of inflation. Say an H1B Product Manager makes 110k whereas an American Product Manager makes 100k at the same company. This could lead to jealousy between employees and companies might have to raise salary of american worker having the same job title because H1-B salary adjustment will no longer be an optjn. Other option will be to fire the "skilled" H1-B employee or not hire him in first place (even though he/she was skilled). This is indirectly causing problems even for skilled H1-B workers.
Agree!
Great Job Ted Cruz. This will actually increase the need for true offshore based operations in every corporate structure rather than keeping the talent in the country who would normally pay their social security and all the other expenses for them to boost American economy.
I would love to see such change. However there are too many flaws, minimum wage cannot be fixed without considering location(like CA vs GA/AL/FL etc and demand for such job (like technology, experience and field). DOL's job is to do that, help them by providing good changes not some stupid immature talk. I do agree SOME h1bs are misused as cheap labor but not all.
This is totally Absurd. H1b is not helping united states is one of the most stupidest thing I have heard in The recent times after Donald Trumps statement about muslims. Come down to silicon valley, you will get to know how H1b is helping create jobs.
POLITICAL HIPOCRITE
I understand your genuine concern for the American people but is IT the only industry which is keeping this country alive and running. H1B program has become a easy target for all the individuals who wants to make big in politics. Why nobody is showing any interest towards other industries and related job opportunities? Why is nobody proposing high wages for other industries? Why is your citizens not getting necessary benefits from their tax money? Where do you all get finances from for running your cash rich election campaigns? What have you done for your supporters? Whats your contribution towards climatic change? There are lot of questions which you all need to address than worrying about H1B and US needs labour work force to fulfill positions which locals cannot meet at this point of time.
There is an never was a labor shortage nor a skills issue. If so why would companies before firing theie US employees force them to train their replacements? Why did they pay their replacements less. If there was a skill shortage would be expected to pay more for that skill. In fact wages in STEM fields have been flat for years and in some cases dropped. Why have companies contributed hundreds of million of dollars to Congressman that support H1B's? What does climate change have to do with H1B's? Why should the the US import workers that are sub par in education ( thay are not the best or brightest) and will work cheap? They offer nothing long term to the US
This is idiotic ..This will create International students with arts major to not be hired at all…students with creativity will be excluded from being hired.