EPI: H-1B visas and prevailing wage levels

Costa and Hira

Daniel Costa and Ron Hira have released a new report for the Economic Policy Institute: H-1B visas and prevailing wage levels.

Here are key takeaways the two authors identify:

• DOL lets H-1B employers undercut local wages. Sixty percent of H-1B positions certified by the U.S. Department of Labor are assigned wage levels well below the local median wage for the occupation. While H-1B program rules allow this, DOL has the authority to change it—but hasn’t.
• A small number of employers dominate the program. While over 53,000 employers used the H-1B program in 2019, the top 30 H-1B employers accounted for more than one in four of all 389,000 H-1B petitions approved by U.S. Citizenship and Immigration Services in 2019.
• Outsourcing firms make heavy use of the H-1B program. Half of the top 30 H-1B employers use an outsourcing business model to provide staff for third-party clients, rather than employing H-1B workers directly to fill a special need at the company that applies for the visa.
• Major U.S. firms use the H-1B program to pay low wages. Among the top 30 H-1B employers are major U.S. firms including Amazon, Microsoft, Walmart, Google, Apple, and Facebook. All of them take advantage of program rules in order to legally pay many of their H-1B workers below the local median wage for the jobs they fill.

This report would’ve been great to have on hand when I wrote my article Beauty and the Beast: Disney’s Use of the Q and H-1B Visas.

-KitJ