H-1B Visa Reform Could Make Life Harder For Staffing Companies

Stiff new immigration laws introduced by Iowa Republican Sen. Chuck Grassley could stop staffing companies from bringing in H-1B visa holders.

Declaring that “Somewhere along the line, the H-1B program got side-tracked,” Grassley re-introduced legislation this week tightening up the entire H-1B program. Similar efforts by Sen. Grassley last year went nowhere, but with the renewed effort in Congress to enact some form of immigration reform, some of his proposals could get make it into law.

A group of four Democrats and four Republicans — the so-called Gang of Eight — have been working for weeks to come up with a bi-partisan immigration reform bill. Among the thornier problems has been the issue of guest worker visas, especially in regard to the flow of low-skilled workers for jobs in construction.

Bill would make it harder to import workers

Creating a path to citizenship, or at least removing or reducing the threat of deportation for the estimated 11 million undocumented immigrants is also part of the reform package the group says will be ready to present to Congress after it returns in April from its spring break.

While Grassley is not a member of the Gang of Eight, his bill is nearly identical to one co-sponsored by Sen. Dick Durbin, D-Ill., two years ago. Durbin, who is a member of the immigration negotiators, will “strongly support” Grassley’s bill, his staffer told the political reporting site, Politico.

The bill is squarely focused on making it more difficult to import workers. In his message introducing the bill, Grassley said, “The (H-1B) program was never meant to replace qualified American workers, but it was instead intended as a means to fill gaps in highly specialized areas of employment.  When times are tough, like they are now, it’s especially important that Americans get every consideration before an employer looks to hire from abroad.”

Among the key provisions of his legislation is a prohibition from “outsourcing visa holders to other companies.” Companies that can show they are not displacing an American worker can get a waiver, so long as it is not a “labor for hire” arrangement.

What the bill would do

Other provisions of his bill include:

  • A prohibition on advertising jobs only to H-1B visa holders;
  • A requirement that H-1B visa workers be paid the highest of 1) the local prevailing wage for the job; 2) the median average for all workers in the same job classification in the area of employment; or 3) the median wage for skill level 2 in the occupational classification found in the most recent occupational employment statistics survey.
  • Easier enforcement of the rules by allowing random audits and simplifying the requirements of launching an investigation;
  • Increasing the penalties for violations and willful misrepresentation.

Many of the provisions seem aimed at staffing firms in India that recruit tech workers overseas, and specifically include language in their job postings discouraging Americans from applying. Some of these firms pay these workers well below the prevailing wage, or make paycheck deductions for their housing and to recoup the expense of their relocation.

Article Continues Below

Offshore outsourcing firms recruiting workers for U.S. companies in the United States account for about half the H-1B visas issued annually.

Some language is “troubling to the staffing industry”

That point was driven home Monday during testimony before the Senate Judiciary Committee. Karen Panetta, a professor of electrical and computer engineering at Tufts University, and a former director of the IEEE’s Women in Engineering Committee, said over 80 percent of the visas used by offshore outsourcing firms are held by males.

“It’s hard to get promoted when you don’t get hired in the first place,” Panetta told the committee, according to Computerworld.  When the vast majority of visa workers are male, “this does not make for a diverse workforce or work environment.”

Mark Roberts, CEO of TechServe Alliance, told Staffing Industry Analysts that the industry group has expressed its opposition to the bill.

“There is language there that is very troubling to the staffing industry,” Roberts told Staffing Industry Analysts. “If it passes as is that would mean no staffing firm could use H-1Bs. That would be a devastating result particularly in the IT and engineering sectors.”

The Alliance’s 2013 legislative agenda declares:

TechServe Alliance supports legislative efforts to amend the H-1B or other visa programs to permit access to a sufficient number of IT and engineering professionals to meet business needs, any such legislation should not discriminate against U.S. IT & engineering staffing and solutions companies.”

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.


3 Comments on “H-1B Visa Reform Could Make Life Harder For Staffing Companies

  1. awesome, no more cheap pimping for blood-sucking middel-men agencies. Guess the days of importing cheap scab replacement workers at the drop of a hat are over…
    too bad/so sad…

  2. I am so tired of getting recruiting calls from people (a) who’s accents are so thick that they’re barely understandable (and that’s not racist, it’s just a fact) and (b) implying that I am somehow asking for two much money just because it’s more than what tech workers from poverty stricken companies would demand. As long as staffing agencies are able to import H1-Bs at below prevailing wages, we’re going to see higher unemployment in this country and less incentive for developing countries to develop their own economies. This has got to stop.

Leave a Comment

Your email address will not be published. Required fields are marked *