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Highly Educated Foreign Professionals:
Separating Myth from Reality
Highly educated, foreign-born professionals infuse U.S. companies, medical facilities and
research institutions with needed talent, increase innovation and help to revitalize our economy.
Despite these benefits, opponents of the program raise allegations that are not based in fact and
do not reflect the realities of either the employment-based (EB) green card or H-1B visa
programs. Below, we shatter the most common of these myths with the real facts.
Myth: Foreign professionals take jobs from U.S. workers.
Reality: The EB green card and H-1B visa programs are a source of job creation and
retention in America.
There is a long history of foreign professionals coming to this country and contributing
to America’s economic success. This drives job creation and helps keep America
competitive. By helping to develop new products and services, conducting cuttingedge
research, developing new medical treatments and enabling companies to expand
their client base, foreign professionals create good-paying jobs for American workers.
In the last 15 years, immigrants have started 25 percent of U.S. venture-backed public
companies, such as Intel, Sun Microsystems, eBay, Yahoo! and Google. In 2005, these
publicly traded venture-backed companies generated more than $130 billion in revenue.
Moreover, Indian and Chinese entrepreneurs founded nearly one-third of Silicon
Valley’s technology companies that accounted for $19.5 billion in sales and generated
more than 72,000 jobs.
The EB green card and H-1B visa programs are helping to keep jobs in America. If
companies cannot get the talent they need at home, they will have to look elsewhere.
Myth: Because of high-tech sector layoffs, foreign workers are not needed.
Reality: Despite the economic downturn and layoffs that have impacted many sectors of
the U.S. economy, the brightest scientists and engineers in the world – whether
American or foreign-born – will always be in demand. The EB green card and
H-1B visa programs are important tools for hiring these professionals –
particularly after they have graduated from U.S. universities.
EB green card and H-1B visa professionals work in all sectors of the economy as
architects, teachers, lawyers, doctors, engineers, researchers and in many other
professional occupations, including information technology fields.
Highly Educated Foreign-Born Professionals:
Separating Myth from Reality
Employers adjust their use of these visa programs to adapt to changing labor market
conditions. This is best exampled by the change in H-1B visa applications from FY
2009 to FY 2010. While the FY 2009 cap was exhausted during the filing period that
began on April 1, 2008, the FY 2010 cap has yet to be reached – a reflection of the
downturn in the economy.
Moreover, the EB green card and H-1B visa programs allow U.S. employers to hire
foreign-born students who receive a degree from a U.S. higher education institute.
About half of those graduating with U.S. master’s or higher degrees in science,
technology, engineering or mathematics (STEM) fields are foreign nationals. In 2007,
foreign nationals comprised half of the master’s and 70 percent of the Ph.D.s in
electrical engineering from U.S. universities. It is counterproductive to educate these
individuals, train them in our companies and then send them home to compete against
us.
Myth: Foreign-born professionals are a source of cheap labor.
Reality: The H-1B visa program contains strong provisions to ensure U.S. workers are
protected. U.S. companies must meet strict criteria set by the U.S. Department of
Labor, U.S. Citizenship and Immigration Services and the U.S. Department of
State.
Employers must pay H-1B professionals the higher of 100 percent of the prevailing
wage set by the Department of Labor or of what they pay other similarly situated
workers. Foreign workers must receive the same benefits and working conditions as
U.S. workers.
In addition to wage requirements, it is expensive just to hire an H-1B worker. Taking
into account the recruitment and training fee (generally $1500), the anti-fraud fee
($500), the filing fee ($190), the “premium processing” fee that is often necessary
($1000) and the legal fees and costs, U.S. employers typically spend between $5000
and $6000 just to secure an initial H-1B approval. And that is on top of the
recruitment, compliance and other administrative costs.
Myth: Foreign professionals lower the wages and working conditions of U.S workers.
Reality: The H-1B program contains safeguards that protect U.S. workers’ wages and
working conditions.
Employers must guarantee that the U.S. workers will not be adversely affected upon the
hiring of an H-1B professional. The wages of U.S. workers are protected by requiring the
employer to pay H-1B professionals at least the actual wage paid to U.S. workers in a
similar position, or the prevailing wage for the position, whichever is higher. The H-1B
visa program cannot be used when there is a strike or lockout at the worksite.
Employers also must notify their U.S. workforce when hiring an H-1B professional.
This notification includes the occupation of the H-1B professional, as well as the salary
range of the professional and information on how U.S. workers may file complaints
with the government if they have concerns about the H-1B hire.
Employers who fail to comply with Department of Labor regulations may be subject to
investigation, civil and administrative penalties, payment of back wages, and debarment
from participating in key immigration programs. The H-1B program is not about cheap
labor – it is about keeping America competitive with the best talent available. Fraud
and willful misrepresentation should never be tolerated. Those who abuse our system
should face an appropriate combination of civil and/or criminal penalties.
Myth: The H-1B cap is based on economic data and empirical research and protects U.S.
jobs.
Reality: The H-1B cap bears no relation to demand for jobs by U.S. workers. Whether set
at 65,000 or 195,000 visas annually, the cap has always been a politically expedient
compromise not based on market need.
While the FY 2009 cap was exhausted during the filing period that began on April 1,
2008, the FY 2010 cap has yet to be reached – a reflection of the downturn in the
economy.
The fact that demand has historically fluctuated and will likely continue to fluctuate
with the ups and downs of our economy is proof that a market-based cap on the number
of H-1B visas allotted per year – as Compete America has advocated for many years –
is justified. The past several years of applications far exceeding the quota available
means there is pent-up demand for H-1Bs.
Despite the economic downturn and layoffs that have impacted many sectors of the
U.S. economy, the brightest scientists and engineers in the world – whether American
or foreign-born – will always be in demand.
Myth: Nothing is being done to boost the U.S. workforce.
Reality: U.S. employers make substantial contributions to promote and support technical
education and training for U.S. workers.
U.S. employers are required to pay a $1500 fee with each H-1B petition filed that goes
toward scholarships and training for U.S. workers. Since 1999, U.S. employers have
paid more than $2 billion in fees, funding more than 40,000 scholarships for U.S.
students in math and science, and have supported science programs for 80,000 middle
and high school students and training for more than 55,000 U.S. workers. In addition,
many employers oversee their own U.S. worker training programs.
Myth: H-1B workers are “indentured servants” who are trapped by an employer.
Reality: H-1B professionals are sophisticated, know their market value and can apply to
change employers, so they are not beholden to one employer.
H-1B professionals are able to change jobs as soon as another employer files a visa
petition for them. (This portability provision does not affect the length of time that H-
1B workers may remain in the United States.) Thus, if their original job is
unsatisfactory, H-1B visa holders may change jobs in a similar manner to a U.S.
worker. It is not unusual for H-1B professionals to switch employers several times
during their stay.
In addition to being required to pay H-1B employees at the prevailing wage for U.S.
workers, employers are prohibited by law from requiring H-1B professionals to work
under conditions different from their U.S. counterparts, including hours, shifts and
benefits.
Many H-1B workers are sponsored for permanent residence, a fact that points to the
need to establish a direct path for immigrants seeking permanent residence. The H-1B
program was designed for temporary workers. Those seeking green cards clog the
system, and are forced into a legal limbo created by their temporary H-1B status.
Myth: Foreign workers do not pay U.S. taxes.
Reality: Foreign workers resident in the United States pay the same taxes on worldwide
income as U.S. workers. They also pay the same social security, unemployment
and state taxes.
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