The H-1B visa, intended to attract top global talent to the US, has been exploited by outsourcing and staffing companies. These firms secure visas for relatively lesser-skilled workers, pay them less, and undercut American labor. Their approach harms US workers, the economy, and talented immigrants while benefiting visa middlemen.
We examined H-1B lotteries – annual drawings that award a limited number of new visas amid overwhelming demand. Federal data, obtained through a Freedom of Information Act lawsuit, revealed that IT staffing companies exploited the lottery, sometimes fraudulently, to obtain H-1B visas. Their gaming, which included filing multiple entries for the same individuals, disadvantaged other US businesses. Our analysis showed nearly half of all visas went to outsourcing or staffing companies.
Widespread use of H-1B workers in lower-level positions triggered discrimination lawsuits. Reporters used data released through discovery in a class-action lawsuit to show how one firm’s US workers were affected.