New Report Finds Mass Wage Theft in the H-1B Visa Program, Demonstrates the Need for Reform

FOR IMMEDIATE RELEASE

Katie Barrows
Communications Director
P: 202-549-5991
kbarrows@dpeaflcio.org

WASHINGTON, Dec. 9, 2021 - Today, the Economic Policy Institute (EPI) released a report on an analysis of an internal document of HCL Technologies, an Indian outsourcing company and a top user of the H-1B visa program, that finds HCL workers on H-1B visas were underpaid by at least $95 million. The report also reveals that widespread underpayment of H-1B workers is part of HCL’s competitive strategy. 

The H-1B visa is a non-immigrant visa that allows an employer to hire guest workers who will be employed temporarily in “specialty occupations,” or occupations that typically require at least a bachelor’s degree or equivalent. The program’s wage standards are so low and the labor protections so weak that employers can and do often displace U.S. professionals with lower paid guest workers. The findings in EPI’s report provide further proof that employers use the H-1B program to cut costs by paying workers less. 

“EPI’s report reinforces what we already know - the H-1B visa program is too easily misused by employers to lower wage standards for both H-1B guest workers and U.S. professionals,” said Department for Professional Employees, AFL-CIO President Jennifer Dorning. “HCL is just one of a number of companies that use the H-1B program to facilitate an outsourcing and offshoring business model, and EPI’s analysis offers a rare look into how this low-road approach comes at the expense of lost wages for workers. The report’s findings further demonstrate the urgent need to reform the H-1B visa program, including raising the wage requirements and updating the process for allocating visas. These administrative actions will curb abuse of the H-1B visa program, ensuring it works for U.S. professionals and the people employed on H-1B visas, not just employers.”

About DPE

The Department for Professional Employees, AFL-CIO (DPE) is a coalition of 24 unions representing over four million professional and technical union members. DPE affiliate unions represent professionals in over 300 occupations in education and healthcare; science, engineering, and technology; legal, business, and management; media, entertainment, and the arts; and public administration.