Congress set up the H-1B program to help American companies hire foreigners with exceptional skills, to fill open jobs and to help their businesses grow.
But the program has been failing many American employers who cannot get visas for foreigners with the special skills they need.
Instead, the outsourcing firms are increasingly dominating the program, federal records show. In recent years, they have obtained many thousands of the visas — which are limited to 85,000 a year — by learning to game the H-1B system without breaking the rules, researchers and lawyers said.
In some years, an American employer could snag one of these coveted visas almost anytime. But recently, with the economy picking up, the outsourcing companies have sent in tens of thousands of visa requests right after the application window opens on April 1. Employers who apply after a week are out of luck.
“The H-1B program is critical as a way for employers to fill skill gaps and for really talented people to come to the United States,” said Ronil Hira, a professor at Howard University who studies visa programs. “But the outsourcing companies are squeezing out legitimate users of the program,” he said. “The H-1Bs are actually pushing jobs offshore.”
Those firms have used the visas to bring their employees, mostly from India, for large contracts to take over work at American businesses. And as the share of H-1B visas obtained by outsourcing firms has grown, more Americans say they are being put out of work, or are seeing their jobs moved overseas.
Of the 20 companies that received the most H-1B visas in 2014, 13 were global outsourcing operations, according to an analysis of federal records by Professor Hira. The top 20 companies took about 40 percent of the visas available — about 32,000 — while more than 10,000 other employers received far fewer visas each. And about half of the applications in 2014 were rejected entirely because the quota had been met.
Two of those applications came from Mark Merkelbach and his small engineering firm in Seattle. For water projects in China, he needed engineers and landscapers who speak Mandarin, and he could not find them in the local market. With his H-1B visas denied, Mr. Merkelbach had to move the jobs to Taiwan. Another denial went to Atulya Pandey, an entrepreneur from Nepal who founded an Internet company in the United States and now can no longer work legally in this country for his own business.
This is just more evidence that we need legal crackdowns on outsourcing if we want to preserve any sort of American jobs. The H1-B Visa program should be a good thing that helps build the nation through bringing in workers that can help companies while diversifying the nation. But this level of abuse by corporations who want to outsource as many employees as possible is actually forcing work abroad. The system needs serious reform if it doesn’t contribute to income inequality and joblessness rather than promoting the needs of innovative companies.