H-1B visa

The H-1B is a non-immigrant visa category in the United States under the Immigration & Nationality Act, section 101(a)(15)(H). It allows U.S. employers to seek temporary help from skilled foreigners who have the equivalent U.S. Bachelor's Degree education. H-1B employees are employed temporarily in a job category that is considered by the U.S. Citizenship & Immigration Services to be a "specialty occupation". A specialty occupation is one that requires theoretical and practical application of a body of specialized knowledge along with at least a bachelor’s degree or its equivalent. For example, architecture, engineering, mathematics, physical sciences, social sciences, medicine and health, education, business specialties, accounting, law, theology, and the arts may be considered to be specialty occupations.

The actual size of the H-1B program is difficult to gauge due to exemptions from the 65,000-person quota limit. 130,497 new H-1B visas were approved in FY 2004 and 116,927 in FY 2005. It was reduced to 65,000 beginning in 2006. This cap, however, does not apply to non-profit organizations or higher-education institutions. The demand for H-1B employees is so high that American corporations have filed for H-1B applicants, six months in advance of issuing the visa in 2007. Nonetheless, previously unavailable data indicates that demand for H-1B visa was substantially higher among Indian outsourcing firms with a workforce based primary in India. 7 of the top 10, receivers of H-1B visas were Companies engaged in this practice. Among the top ten, only Microsoft, IBM, and Oracle have H-1b demand that is even remotely close to the Indian outsourcing firms. USCIS has received over 130,000 applications from U.S. corporations for the 2007-2008 year quota of 65,000. Fortunately, the H-1B visa is not the only means for U.S. employers to lawfully hire skilled foreign nationalsThe list of the top 200 receivers of H-1B visa in 2006 has recently been made available for the first time, however the number of applications that were submitted unsuccessfully for each company remains unpublished. However, data suggests that companies that engage in offshoring work to India submitted H-1B visa applications in heavy volume. For instance, it is known that Infosys and Wipro submitted approximately 20,000 applications in 2006.

The H-1B visa program is controversial Advocates say the program (and similar ones operated by other technologically-advanced countries) helps the host country maintain its technological as well as economic superiority by providing a steady flow of highly skilled professionals who may be in short supply domestically. It also provides an incentive for companies not to move their operations abroad. Recent data suggests, that this intent is not the guaranteed outcome.

The H-1B program has been criticized for displacing substantial numbers of experienced American citizen technical professionals or lowering wages enough to encourage them to abandon volatile careers in targeted fields such as computer technology. Although there are differing views on whether or not the H-1B visa is good for the U.S. economy, economist Milton Friedman has called the program a form of subsidy.. Currently the number of H-1B visas issued per year is limited to 65,000 with an additional 20,000 for those with U.S. graduate degrees and no limit for universities and non-profit and government research laboratories.

Other critics have argued that H-1B programs are distorting market forces within the U.S. by incentivising Indian nationals to flood U.S. graduate schools to earn Advanced degrees solely for the purpose of obtaining work visas, and at the same time de-incentivising U.S. citizens from earning technical degrees or continuing on to earn graduate degrees due to applicant pool flooding. For instance, at the undergraduate level, US-born engineering students constitute upwards of 90-95% of the student population, with a student pool that is larger than the number of foreign born nationals who apply to engineering graduate schools to earn advanced degrees. Yet, upwards of 50% of the advanced degrees conferred in technology are to foreign-born nationals.

Under current law, an alien can be in H-1B status for a maximum period of six years at a time. After that time an alien must remain outside the United States for one year before another H-1B petition can be approved. Certain aliens working on Defense Department projects may remain in H-1B status for 10 years. In addition, certain aliens may obtain an extension of H-1B stay beyond the 6-year maximum period, when: 365 days or more have passed since the filing of any application for Labor Certification, that is required or used by the alien to obtain status as an employment-based immigrant, or 365 days or more have passed since the filing of an employment based immigrant petition.

H-1B visas are employer-specific, and aliens may only work for the petitioning U.S. Employer and only in the H-1B activities described in the petition. The petitioning U.S. employer may place the H-1B worker on the worksite of another employer if all applicable rules (e.g., Department of Labor rules) are followed. H-1B aliens may work for more than one U.S. Employer, but must have a Form I-129 petition approved by each employer. As Immigration Solutions Group reports, government filing fees will increase substantially on July 30, 2007 and may again increase dramatically if congress passes legislation seeking to increase filing fees for H-1Bs from 1,500 to $5,000 towards scholarships.

An alien may change H-1B employers without affecting status, but the new H-1B employer must file a new Form I-129 petition for the alien before he or she begins working for the new employer. The merger or sale of an H-1B employer’s business will not affect the alien’s status in many instances. However, if the change means that the alien is working in a capacity other than the specialty occupation for which they petitioned, it is a status violation.

As long as the employer/employee relationship exists, an H-1B alien is still in status. An H-1B alien may work in full or part-time employment and remain in status. An H-1B alien may also be on vacation, sick/maternity/paternity leave, on strike, or otherwise inactive without affecting his or her status. It was also blamed for encouraging brain drain in the source countries.

H-1B holders are allowed to bring their spouses to the USA on H-4 visas at any time, however spouses are not permited to work while under an H-4 visa.

Taxation status of H-1B workers

H-1B workers are legally required to pay the same taxes as any other U.S. resident, including Social Security and Medicare. Almost any person who spends more than 183 days in the U.S. in a calendar year is a tax resident and is required to pay U.S. taxes on their worldwide income. (The exceptions to this rule are very few in number; they include the case of students on F-1 and people who would like to leave the U.S. but are prevented from doing so by a medical problem.) From the IRS perspective, it doesn't matter if that income is paid in the U.S. or elsewhere. If an H-1B worker is given a living allowance, it is treated the same by the IRS as any other U.S. resident. However since an H-1B visa is only valid for 6 years and Social Security benefit eligibility typically requires 10 years of work, most H-1B visa holders will not be able to make use of the Social Security benefits that they are contributing to.

H-1B employment

According to the USCIS, "H-1B aliens may only work for the petitioning U.S. employer and only in the H-1B activities described in the petition. The petitioning U.S. employer may place the H-1B worker on the worksite of another employer if all applicable rules (e.g., Department of Labor rules) are followed. H-1B aliens may work for more than one U.S. employer, but must have a Form I-129 petition approved by each employer." Enforcement of these rules depends upon the employee, however. The Department of Labor has neither the authority nor the manpower to investigate violations of these rules unless and until a complaint is made.

As the rules are written, there is no requirement that an American be sought to fill a position, nor given preference in layoffs unless the company is "H-1B dependent", i.e. 15 percent or more of its global workforce consists of H-1Bs earning less than $60,000 per year, exempting those who hold masters degrees. Only about one percent of H-1B employers are deemed "H-1B dependent," and even then the employer is only required to "attest" that he was not able to find an American. (The true level of H-1B dependence is most likely higher since the current rules for measuring H-1B dependence are applied across all occupations within a company including administrative, sales, marketing, and other technical positions, rather than specifically to the technology areas within a company for which an H-1B is granted.)

U.S. policy on maximum duration

In theory, the maximum duration of the H-1B visa is six years (ten years for exceptional Defense Department project-related work). H-1B holders who want to continue to work in the U.S. after six years, but who have not obtained permanent residency status, must remain outside of the U.S. for one year before reapplying for another H-1B visa.

There are generally two exceptions to the 6 year duration of the H-1B visa:

• If a visa holder has submitted an I-140 immigrant petition or a labor certification prior to his 5th year anniversary of having the H-1B visa, he is entitled to renew his H-1B visa in 1 year increments until a decision has been rendered on his application for permanent residence.

• If the visa holder has an approved I-140 immigrant petition, but is unable to initiate the final step of the green card process due to his priority date not being current, he may be entitled to a 3 year extension of his H-1B visa. This exception originated with the American Competitiveness in the Twenty-First Century Act of 2000.

H-1B and legal immigration

Even though the H-1B visa is a non-immigrant visa, it is one of the few visa categories recognized as dual intent, meaning an H-1B holder can have legal immigration intent (apply for and obtain the green card) while still a holder of the visa. In the past the employment-based green card process used to take only a few years, less than the duration of the H-1B visa itself. However, in recent times the legal employment-based immigration process has backlogged and retrogressed to the extent that it now takes many years for skilled professional applicants from certain countries (like India and China) to obtain their green cards. Since the duration of the H-1B visa hasn't changed, this has meant a lot more H-1B visa holders have to renew their visas in 1 year or 3 year increments to continue to be in legal status while their green card application is in process.

Quotas and changes in quotas

The number of new H-1Bs issued each year in the United States is subject to an annual congressionally-mandated quota. Each H-1B quota applies to a particular Financial Year which begins on October 1. Applications for the upcoming Financial Year are accepted beginning on the preceding April 1 (or the first working day after that date). Those beneficiaries not subject to the annual quota are those who currently hold H-1B status or have held H-1B status at some point in the past six years and have not been outside the United States for more than 365 consecutive days. This annual quota has had a significant impact on the high tech industry. It has generally been set at 65,000 visas per year, with some exceptions for workers at exempt organizations like universities and non-profits. In 2000, Congress permanently exempted H-1B visas going to Universities and Government Research Laboratories from the quota.

During the early years of this quota in the early 1990s, this quota was rarely actually reached. By the mid-1990s, however, the quota tended to be filled each year on a first come, first served basis, resulting in new H-1Bs often being denied or delayed because the annual quota was already filled. In 1998 the quota was increased first to 115,000 and then, in 2000, to 195,000 visas per year. This increase in the quota seemed to play a role in oversaturating an already softening high-tech job market. During the years the quota was 195,000, it was never reached, and the availability of high-tech jobs in the USA plummeted as there was just too much competition for positions.

In FY 2004, the quota reverted to 90,000 when the temporary increase passed by Congress in 1999 expired. Since then, the quota is again filling up rapidly every year, making H-1Bs again increasingly hard to get. More recently, the basic quota was left at 65,000 but with an additional 20,000 visas possible for foreign workers with U.S. advanced degrees. Of the 65,000 total, 6,800 are initially reserved for citizens of Chile and Singapore under free trade agreements with those countries; however, if these reserved visas are not used under the agreements, they go back to the general pool. Outside of the 65,000 quota, another 10,500 visas annually are available to Australian citizens under a similar but more flexible program, the E-3 visa program.

For FY 2007, beginning on October 1, 2006, the entire quota of visas for the year was exhausted within a span of less than 2 months on May 26, 2006, well before the beginning of the financial year concerned. The additional 20,000 Advanced Degree H-1B visas were exhausted on July 26. For FY 2008, the entire quota was exhausted before the end of the first day on which applications were accepted, April 2. Under USCIS rules, the 123,480 petitions received on April 2 and April 3 that were subject to the cap were pooled, and then 65,000 of these were selected at random for further processing. The additional 20,000 Advanced Degree H-1B visas for FY 2008 was exhausted on April 30.

In its annual report on H-1B visas released in November 2006, USCIS stated that it approved 131,000 H-1B visas in FY 2004 and 117,000 in FY 2005. The inflation in numbers is because H-1B visas granted to employees of not for profit organizations is not numerically capped.

H-1B dependent employers

Recent H-1B legislation requires certain employers, called H-1B dependent employers to advertise positions in the USA before petitioning to employ H-1B workers for those positions.

For firms of 50 employees, an H-1B dependent employer is defined as having more than 15% of their employees in H-1B status. Smaller firms are allowed to have a higher percentage of H-1B employees before becoming 'dependent'....

Criticisms of the Program

The H-1B program has caused a number of criticisms.

One criticism of the H-1B program has been over its role in replacing U.S. workers. The first documented cases occurred in 1994 when AIG (Livington NJ) and SeaLand (Elizabeth NJ), took advantage of a loophole in the law to replace their U.S. programming staffs with H-1B workers. These companies used contract job shops to supply the H-1B replacements. The companies could claim they did not apply for H-1B visas and the job shops could claim they had not fired any U.S. workers. Thus, the employer could openly and legally replace their U.S. workforce with H-1B workers.

The American Competitiveness Act of 1998 that temporarily expanded the H-1B program contained a provision to close this loophole in the version that passed the House Judiciary Committee. However, the House leadership had it removed before the bill came to a vote.

Another criticism of the H-1B program is its vague eligibility requirements, however specific guidelines upheld by a body of case law define the requirements. While frequently described as a program for "highly skilled" workers, the H-1B nonimmigrant visa category specifically applies to specialty occupations. However, it might be argued that any job that requires a minimum of a bachelor's degree, is "highly skilled".

Specialty occupations have been defined as positions that require theoretical or technical expertise in a specialized field and have generally been interpreted as being those that normally require the attainment of a Bachelor's degree. Typical H-1B occupations include architects, engineers, computer programmers, accountants, doctors and college professors. The H-1B visa program also includes fashion models.

Wage depression is a complaint critics have about the H-1B program: some studies have found that H-1B workers are paid significantly less than U.S. workers. It is claimed that the H-1B program is primarily used as a source of cheap labor. However the sources of these studies are normally conducted and reported by special interest groups that oppose the H-1B program. No definitive governmental study, either by the GAO or the Congressional Research Agency has proven these statistics to be true.

The Labor Condition Application (LCA) included in the H-1B petition is supposed to ensure that H-1B workers are paid the prevailing wage in the labor market, or the employer's actual average wage, whichever is higher, but some evidence exists that some employers do not abide by these provisions and therefore avoid paying the actual prevailing wage. However, studies show that the majority of employers do pay prevailing wages and the law provides stiff penalties for abusers.

DOL has split the prevailing wage into four levels, with Level One representing about the 17th percentile of wage average Americans earn - and about 80% of LCA are filed at this 17th percentile level. This four level prevailing wage can be obtained the DOL website, and is generally far lower than average wages.

The "prevailing wage" stipulation is allegedly vague and thus easy to manipulate, resulting in employers underpaying visa workers. According to Ron Hira, assistant professor of public policy at the Rochester Institute of Technology, the medium wage in 2005 for new H-1B information technology (IT) was just $50,000, which is even lower than starting wages for IT graduates with a B.S. degree. The US governments OES office's data indicates that 90% of H-1B IT wages were below the median US wage for the same occupation. [1]

Another alleged flaw identified in the same source [2] is the argument that more H-1B's are needed because fewer citizens are selecting technology fields. However, it seems that the reason may at least partly because students fear selecting a career that is under pressure of 3rd-world labor competition, seeing what it has done to agriculture and manufacturing careers. This may mean lower wages or more instability in the field.

Historically, H-1B holders have sometimes been described as indentured servants, and while the comparison is not accurate, it had some validity prior to the passage of American Competitiveness in the Twenty-First Century Act of 2000. Although immigration generally requires short & long-term visitors to disavow any ambition to seek the green card (permanent residency), H-1B visa holders are an important exception, in that the H-1B is legally acknowledged as a possible step towards a green card under what is called the doctrine of dual intent.

Some H-1B visa holders work as offshore agents. Sending and coordinating work back in their homeland (mostly China and India). These agents often work at large corporations that require someone in-house to answer questions and deal with the financial aspects here in the US. Corporations have been using this technique for a few years, with varied success. Software off shoring was very popular for a few years and still remains an attractive alternative for software development. The popularity has fallen off since the results have not always proven worthwhile. The major problem is that software specifications are usually not written to such detail as to someone outside the organization can follow. The resulting software usually falls short of satisfying the specification(s). The result can be even more costly in time and money than having the software developed on-site.

H-1B visa holders may be sponsored for their green cards by their employers through an Application for Alien Labor Certification, filed with the U.S. Department of Labor. In the past, the sponsorship process has taken several years, and for much of that time the H-1B visa holder was unable to change jobs without losing their place in line for the green card. This created an element of enforced loyalty to an employer by an H-1B visa holder. Critics alleged that employers benefit from this enforced loyalty because it reduced the risk that the H-1B employee might leave the job and go work for a competitor and that it put citizen workers at a disadvantage in the job market, since the employer has less assurance that the citizen will stay at his job for an extended period of time, especially if the work conditions are tough, wages are lesser or the work is extensive and deadlined. It has been argued that this makes the H-1B program extremely attractive to employers and that labor legislation in this regard has been influenced by corporations seeking and benefitting from such advantages.

Employers cannot typically sue employees if they leave their employment, regardless of whether the employee is an H-1B holder, a permanent resident or a U.S. citizen. Although any employer can make this threat, the case history of employers who have attempted to sue or otherwise claim money from H-1B employees is limited. In 2001, San Mateo County Superior Court Judge Phrasel Shelton ruled in an H-1B employee's favor on the unfair competition statute and ordered the employer to drop restrictive language in its employee contracts. The H-1B employee in the case was awarded over $200,000 in fees and damages. In 2002 the employer appealed the decision and lost. In addition, Department of Labor's H-1B regulations issued in 2001 prohibit employers from making an H-1B employee pay a penalty for quitting prior to an agreed upon date.

Guy Santiglia v. Sun Microsystems

In 2002, The U.S. government began an investigation into Sun Microsystems' hiring practices after an ex-employee, Guy Santiglia, filed complaints with the U.S. Department of Justice and U.S. Department of Labor alleging that the Santa Clara firm discriminates against American citizens in favor of foreign workers on H-1B visas. Guy Santiglia, ironically a naturalized citizen who had in the past used the worker visa, accused the company of bias against U.S. citizens when it laid off 3,900 workers in late 2001 and at the same time applying for thousands of visas in 2001. In 2002, about 5 percent of Sun's 39,000 employees had temporary work visas, she said.

Current U.S. law states that employers who hire foreign workers must "attest" (though for H-1B, no formal proof of any kind is required) that there are no domestic workers who could fill their positions. H-1B Visa critics have argued that this is an entirely arbitrary and subjective measuring stick that an employer can change arbitrarily and retroactively to disqualify any U.S. applicants over H-1B applicants after the fact. For instance if a company wants to hire a particular H-1B applicant over a U.S. citizen for reason unrelated to skills, all that is necessarily is to make up an arbitrary excuse retroactively when filing the H-1B petition, and with complete disregard to whether the U.S. applicant is really qualified.

Criticisms by H-1B holders

Payment of in-state tuition

In most states, H-1B workers and their dependents do not qualify for in-state tuition regardless of the amount of time spent in the US. In the past few years, a few states such as California, New York and Texas have extended in-state tuition to H-1B workers and dependents. Typically the decision to offer in-state tuition to H-1B and H4 residents is taken as a result of an adverse state court decision that uses the precedent established for G-4 visas in the Supreme Court decision in TOLL v. MORENO, 441 U.S. 458 (1979).

Taxation

In some cases, H-1B workers pay higher taxes than a U.S. citizen because they are not entitled to certain deductions (eg. head of household deduction amongst many others). Some H-1B workers are not eligible to receive any Social Security or Medicare benefits unless they are able to adjust status to that of permanent resident. However, if their country of citizenship has a tax agreement with the United States, they are able to collect the Social Security they've earned even if they don't gain permanent residency there. Such agreements are negotiated between the United States and other countries, typically those which have comparable standards of living and public retirement systems

Worker protection and law enforcement

For every H-1B petition filed with the USCIS, there must be included a Labor Condition Application (LCA) certified by the U.S. Department of Labor. The LCA is designed to ensure that the wage offered to the non-immigrant worker must meet or exceed the "prevailing wage" in the area of employment. The LCA also contains an attestation section designed to prevent the program from being used to import foreign workers for the purpose of breaking a strike, or for the purpose of replacing U.S. citizen workers. Under the regulations, LCAs are a matter of public record. Corporations hiring H-1B workers are required to make these records available to any member of the public who requests to look at them. Copies of the relevant records are also available from various web sites, including the Department of Labor.

At a high level, the LCA process appears to offer protection to both U.S. and H-1B workers. According to the U.S. General Accounting Office the details of law render these protections ineffective. The employer ultimately, not the Department of Labor, however, determines what source it will use to determine the prevailing wage for an offered position, and it may choose among a variety of competing surveys, including its own wage surveys, provided that such surveys follow certain defined rules and regulations.

The law specifically restricts the Department of Labor's approval process of LCAs to checking for "completeness and obvious inaccuracies".. In FY 2005, only about 800 LCAs were rejected out of over 300,000 submitted.

Recent changes to U.S. law

The American Competitiveness in the Twenty-First Century Act of 2000 (AC21) and the U.S. Department of Labor's PERM system for labor certification erased most of the earlier claimed arguments for H-1B's as indentured servants during the green card process. With PERM, labor certification processing times have been reduced to less than 90 days.

Because of AC21, the H-1B employee is free to change jobs if they have an I-485 application pending for six months and an approved I-140, if the position to which they are moving is substantially comparable to their current position. In some cases, if those labor certifications are withdrawn and replaced with PERM applications, processing times will improve, but the person will also lose their favorable priority date. In those cases, employers' incentive to attempt to lock in H-1B employees to a job by offering a green card is reduced, because the employer bears the high legal costs and fees associated with labor certification and I-140 processing, but the H-1B employee is still free to change jobs.

However, many people are ineligible to file I-485 at the current time due to the wide-spread retrogression in priority dates. Thus, they may well still be stuck with their sponsoring employer for many years. There are also many old labor certification cases pending under pre-PERM rules.

On May 25, 2006 the U.S. Senate passed immigration bill 2611 which contained several increases in the number of H-1B visas, including: 1) raising the base quota from 65,000 to 115,000, 2) Automatically increasing the base quota by 20% whenever it is reached with no provision for lowering it, 3) Adding 6,800 visas for trade agreements separate from the base quota, 4) Adding 20,000 visas for those with foreign graduate degrees, 5) Raising from 20,000 to unlimited the number of visas for those with U.S. graduate degrees, and 6) Making visas to non-profit organizations exempt from the quota. [3] [4] [5] However, as the House refused to consider the measure, it died in conference and no H-1B increase was approved in time for the elections.

On May 24, 2007, the Senate considered amendments to the Comprehensive Immigration Reform bill (S. 1348) [6] including the Sanders Amendment to increase the H-1B Scholarship & Training Fee from $1500 to $8,500 (for H-1B employers with more than 25 full time employees). The additional fee was to be used for training and scholarship programs and in addition to other existing fees. Senator Sanders listed the Teamsters Union and the AFL-CIO among supporters of his amendment. Without this amendment, Senator Sanders (I-VT) said, "skilled middle class and upper middle class Americans" would be hurt, and their wages would continue to be suppressed. Just prior to the vote, Senator Sanders announced that he had made changes to his amendment, dropping the fee for H-1B visas from the $8,500 he proposed earlier, down to $5,000. Following Senator Sanders’ announcement, Senators Kennedy and Specter expressed their support for the bill and the amendment passed by a vote of 59-35 [7]. Compete America, a coalition of U.S. tech companies, reported the passage of the Sanders amendment will "accelerate outsourcing and undermine U.S. economic growth."

Similar programs

In addition to H-1B visas, there are a variety of other visa categories which allow foreign workers to come into the U.S. to work for some period of time.

L-1 visas are issued to foreign employees of a corporation. Under recent rules, the foreign worker must have worked for the corporation for at least one year in the preceding three years prior to getting the visa. An L-1B visa is appropriate for nonimmigrant workers who are being temporarily transferred to the United States based on their specialized knowledge of the company's techniques and methodologies. An L-1A visa is for managers or executives who will either manage people or an essential function of the company. There is no requirement to pay prevailing wages for the L-1 visa holders. For Canadian residents, a special L visa category is available.

TN-1 visas are part of the NAFTA treaty, and are issued to Canadian and Mexican citizens. Formerly, they were also issued to third country citizens who had obtained permanent residency in Canada. This procedure is called "touching base". TN visas are only available to workers who fall into one of a pre-set list of occupations determined by the NAFTA treaty. There are specific eligibility requirements for the TN Visa.

E-3 visas are issued to citizens of Australia under the Australia free-trade treaty.

H-1B1 visas are issued to residents of Chile and Singapore under the amended NAFTA treaty.

One recent trend in work visas is that various countries attempt to get special preference for their nationals as part of treaty negotiations. Another trend is for changes in immigration law to be embedded in large Authorization or Omnibus bills to avoid the controversy that might accompany a separate vote.

H-2B: The H-2B nonimmigrant program permits employers to hire foreign workers to come to the U.S. and perform temporary nonagricultural work, which may be one-time, seasonal, peak load or intermittent. There is a 66,000 per year limit on the number of foreign workers who may receive H-2B status

Alternatives to H-1B Visa:

• Green Card for medical doctors and physicians.
  • Pre-requisite: National Interest Waiver.
  • Alternatively, a Medical Doctor or Physican may enter the U.S. for a temporary period through a temporary visa.
• Green Cards for Nurses and Physical Therapists
• Employment Visa for Professors and Researchers.

Dependents of H-1B visa holders

H-1B visa holders are allowed to bring their immediate family members (spouse and children under 21) to the United States under H4 Visa category as dependents. An H4 Visa holder may remain in the U.S. as long as the H-1B visa holder remains in legal status. An H4 visa holder is not eligible to work in the U.S. and is not eligible for a Social Security number (SSN). An H4 Visa holder may attend school, obtain a driver's license and open a bank account while in the US. Some recent state regulations prohibit H-4 visa holders from obtaining a driver's license in cases where driver's licenses are no longer being issued on Individual Taxpayer Identification Numbers alone and an SSN is required.

The privilege extended to H-1B visa holders which allows them to bring their spouse and children to the United States is generally considered to be highly discriminatory against gays and lesbians since gay and lesbian marriages are not recognized by the United States.

H-1B demographics

	File:H1b demographics india.jpg
File:H1b demographics.jpg	File:Us overall top 10 countries of origin 1850 to 1990.jpg

Of all Computer Systems Analysts and programmers on H-1B visas in the USA, 74 percent were born in India. This large scale migration of Indian IT professionals from India to the United States has been cited as a central cause of the quick emergence of the Indian offshore outsourcing industry. (See, IT Body Shops)

Usage of H-1B by Indian outsourcing firms

In 2006, nine Indian firms collectively were issued 19,512 of the 65,000 H-1B visas granted, with 5 Indian outsourcing firms among the top 5 receivers of H-1B visas. Among the top of the list were some of the most well known Indian outsourcing firms: Infosys, Satyam, Tata Consultancy Services, and Wipro. Critic have argued that granting H-1B visas to Indian outsourcing firms to facilitate offshoring is an abuse of the real intent of the H-1B Visa program.

In 2006, Wipro applied for 20,000 H-1B visas and 160 Green Cards; and Infosys applied for 20,000 H-1B visas and only 50 Green Cards. Of the Applied H-1B visas, Infosys and Wipro were granted, 4,002, and 4,908 visa respectively, an acceptance rate of 20% and 24%. Given that both companies have a work force of approximately 70,000 employees, and a U.S. employment base of roughly 20,000 H1b holders, this indicates that roughly 1/3 of the Indian workforce of Infosys & Wipro applied for a visa in 2006.

Critics have argued that usage of H-1B's by indian outsourcing firms is being misused by Indian companies as a conduit to move jobs and technology from the United States offshore to their homeland. First, Indian firms place Indian H-1B contracters on a clients site, to get them fully 'trained' to understand how the client's technology works or operates, a task that would be difficult from India without working on-site to study the client's work, then the on-site Indian H-1B help to move everything offshore completely to India: files, databases, and in many cases entire design databases that have taken years to develop in the US.

Top ten H-1B rankings

Top Ten Companies Receiving H-1B's

Rank	Company	Headquarters	Primary Employment Base	H-1Bs received 2006	6 year projection
1	Infosys	Bangalore, India	India	4,908	29,448
2	Wipro	Bangalore, India	India	4,002	24,012
3	Microsoft	Redmond, Washington	USA	3,117	18,702
4	Tata	Mumbai, India	India	3,046	18,276
5	Satyam	Hyderabad, India	India	2,880	17,280
6	Cognizant Technology Solutions	Teaneck, New Jersey	India	2,226	13,356
7	Patni Computer Systems	Mumbai, India	India	1,391	8,346
8	IBM	Armonk, New York	USA	1,130	6,780
9	Oracle Corporation	Redwood Shores, California	USA	1,022	6,132
10	Larsen & Toubro Infotech	Mumbai, India	India	947	5,682
				TOP TEN TOTAL	148,014

Top 10 universities and schools receiving H-1Bs

school	H-1Bs Received 2006
University of Michigan	437
University of Illinois	434
University of Pennsylvania	432
Johns Hopkins University School of Medicine	432
University of Maryland	404
Columbia University	355
Yale University	316
Harvard University	308
Stanford University	279
University of Pittsburgh	275

Top ten U.S. technology companies receiving H-1B's

Company	H-1Bs Received 2006
Microsoft	3117
IBM	1130
Oracle Corporation	1022
Cisco	828
Intel	828
Motorola	760
Qualcomm	533
Yahoo	347
Hewlett Packard	333
Google	328

References

1. United States Citizenship and Immigration Service, "Characteristics of Specialty Occupation Workers (H-1B)", for FY 2004 and FY 2005, November 2006.
2. Dr. Norman Matloff, Debunking the Myth of a Desperate Software Labor Shortage,Testimony to the U.S. House Judiciary Committee
3. Tech-Bubble: 20% or more of U.S. computer programmers unemployed or displaced.
4. Silicon Valley Tech Employment. 2000-2004
5. Chart of High Tech Visa Glut

Notes

• [H1B Visa and their dependents http://www.t3visas.com/UsaVisaGuide.asp#WorkVisaandDependentonWork]

See also

• SKIL Bill
• Free trade debate
• Labor shortage
• Immigration voice

External links for H-1B information

• H-1B FAQ from USCIS site
• Search 2006 H-1B sponsorship and salary range by title and company
• 2005 H-1B Visa Reports including top sponsors, salary statistics, job distribution and immigration attorney
• U.S. Department of Labor Foreign Labor Database
• U.S. Department of State information on H-1B visa
• U.S. GAO Report on H-1B Problems, PDF format
• USA Visa Wiki - H visa information
• Crackdown on Indian Outsourcing Firms using H1b & L1 visas
• Matloff's H-1B and Offshoring Web Page

Anti-H-1B websites

• One Computer Scientist's perspective
• ZaZona
• The Bottom of the Pay Scale: Wages for H-1B Computer Programmers by John M. Miano. An analysis comparing wages on Labor Condition Applications for H-1B workers to actual U.S. Wages.
• Rescue American Jobs
• H-1B Info
• Norman Matloff
• Gone With The World - Author claims to have witnessed H-1B abuses firsthand
• Programmers Guild See website for press releases and appearances on Lou Dobbs
• Center for Immigration Studies
• No More H-1B Visa

Abuse of the H-1B Program

http://www.youtube.com/watch?v=TCbFEgFajGU

Advocacy efforts

• Compete America A pro- H-1B coalition.
• www.ImmigrationVoice.org Issues facing H-1B holders during the transition to Legal Permanent Residency
• "America's New Immigrant Entrepreneurs" - A Duke University Study