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I wish they would just set the H-1B minimum pay to $120k a year or something.


Yes, auctions will be similarly gamed.

I think one easy thing to do to ensure that small cos and rural areas still have access is to require all h1b hires to be level 4, the highest level. As it stands now more than 70% are hired at levels 1 and 2 (2018 data), which are essentially "below average" which is weird for a program aimed at bringing in those with hard to find skills.


I was browsing the H-1B data out there. Some jobs seemed like borderline first level customer service jobs when I went looking at what was at the location listed.....way way not the kind of job that is hard to find people for... provided you pay reasonably well.


It's a bimodal distribution.

H1B doesn't really have a job market test. You just need to justify it's a job that requires a bachelor's degree and pays whatever the DOL wage data says should be the prevailing wage for that classification. It's not that difficult to game the system by playing around with job level, title and location and getting away with the lowest possible pay. This is basically the business model of staffing agencies and contractors.

It's also being used by many genuine employers looking for talent and highly specialized skills. Cost isn't a concern here as their business model relies on making the best product.


How will auctions be gamed?


Unless it's specified to be 120k hard cash, it would turn into 120k total compensation including company accommodation worth 60k/year, various practically-not-claimable options, or others ways.


The law would have to specifically carve in consideration of in-kind benefits for that to happen, and I see no reason to do so. Why would it?


The current "prevailing wage determination" includes fringe benefits already. There's definitely a way to play with those to redirect it back to the company.


I'm pretty sure this is incorrect, unless you have a citation for this. The base pay has to be more than prevailing wage. You can't count any kind of bonus or stock-based compensation. This is based on personal experience.


This is just from a light research, so please correct if there are better links, but https://internationaloffice.berkeley.edu/h-1b_faqs#1

> The H 1B also requires that the H-1B employer pay the H-1B employee the prevailing wage or the actual wage, whichever is higher.

And https://www.dol.gov/whd/h1bworkers.htm

> and you must be offered fringe benefits on the same basis as offered to U.S. employees.

But now that I read it again, they may be separate things that don't sum up. Is that what you meant?


Right. I understand that as "H-1B holders can't be offered an inferior health plan/401k plan/commuter benefits/bonus plan/FSA than US employees". But none of those things count toward the prevailing wage calculation. Only base pay is considered when determining whether the employee is paid more than prevailing wage.


Oh I should have said 120k cash, healthcare with no copay or something ;)


The base pay offered i.e. hard cash already has to be >= prevailing wage under current law. Bonuses and even stock-based compensation are not counted.


So 100% of them end up in the Bay Area?


The first and second largest public companies in the world by market cap hire a lot of H-1Bs and are not in the Bay Area and pay more than this proposed floor.


Fine by me.


This is a silly idea because only a small percentage of professions enjoy such high salaries, so the only thing you would do if you implement something like that is end up with a disproportionate number of people with such jobs. Furthermore, companies in certain geographic areas (e.g. Silicon Valley) would rejoice, because they would be able to hire an even greater number of foreign workers before the quotas get filled.

There are much, much better ways to fix the issues with H-1B visas. The first and most important thing that needs to happen is no longer tying the visa to the employer. Once we make it so that people on H-1B can freely move around in the labor market during the course of their visa, they would automatically gain the ability to command higher wages, which would result in employers rely on foreign labor less (since it would be more expensive), and only hiring foreigners who are actually skilled and exceptional.


I have no problem if only a few people really earn it now. It is supposed to be a program for highly skilled people.


The problem is that skill and salary don't correlate as much as it should. As bad as we are at taxing negative externalities, we're terrible at rewarding positive externalities.


As it is we are bringing in folks on H1Bs who appear to be borderline first level customer support (this was something I ran into browsing the online DB a while back).

At least at 120k you know that the company involved really does value this employee to some extent. They're not likely to spend 120k on someone easily hired locally for far less.


If you don't bring them here, it's not like the jobs can't be moved there.


They can but clearly that isn't the case.


You've never spoken with someone in a call center who clearly wasn't in the US? Or dealt with coders or a team in a country other than the US?

I've found both experiences to be pretty common.


I'm very familiar with outsourcing.

I'm not sure where you're going with it. The existence of outsourcing isn't something I thought we were confused about.


If you restrict people from coming to the US, it's likely to drive outsourcing, because computer work is very easy to ship around the world.


You can apply for a H-1B transfer and the process usually takes about 3 weeks.


Why put a limit at all.


It is supposed to be a program for highly skilled people, but is often abused to just bring in cheaper people.

If they are really difficult spots to fill and important, them the pay should be no issue.


> It is supposed to be a program for highly skilled people

No, it's a program for employers.

> but is often abused to just bring in cheaper people.

That's what it is obviously designed for, within limits, and any contrary explanation requires hoping the person you selling it to doesn't understand the relation between supply, demand, and price.

> If they are really difficult spots to fill and important, them the pay should be no issue.

Pay is always an issue; importance just sets the exact level of pay at which it becomes not worth it to hire.


There are more than 80k skilled people in a 7billion population planet.


Probably, but I don't think the H-1B program is meant to operate as a service for those people.

It's meant for companies to bring some in if needed.


Company demand >>> 80k.




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