H-1B Season Is Here – But So Is Increased Scrutiny
It’s H-1B season, and while thousands of Indian international students in the U.S. are gearing up for the lottery, a new wave of government scrutiny is raising concerns about the program's future.
Recently, the U.S. Equal Employment Opportunity Commission (EEOC) has intensified its efforts to investigate what it calls illegal hiring preferences for foreign workers. At the center of this controversy is the H-1B visa and big tech companies like Meta, which are facing lawsuits for allegedly prioritizing visa holders over American workers.
This crackdown is already reshaping the conversation around H-1B hiring practices, sparking debates about wage levels, labor rights, and the role of skilled foreign workers in the U.S. economy.
The Meta Lawsuit: Why It Matters
Meta, the parent company of Facebook, is facing a lawsuit alleging that it systematically preferred visa holders over American candidates to cut labor costs. The EEOC has warned companies that prioritizing foreign workers—whether to save money or based on perceptions of stronger work ethic—could be considered national origin discrimination.
But this issue extends far beyond Meta. The lawsuit has triggered a broader discussion on how companies use the H-1B program and whether foreign hires are truly paid less than their American counterparts.
The EEOC’s message is clear: It will crack down on staffing agencies, tech firms, and other employers that are found to be prioritizing H-1B candidates in a way that violates U.S. labor laws.
Do H-1B Holders Get Paid Less Than U.S. Workers?
One of the biggest arguments against the H-1B program is that foreign workers are hired at lower wages, making them unfair competitors in the U.S. job market. But what does the data actually say?
Some sources suggest that H-1B workers earn competitive wages. The American Immigration Council refutes claims that H-1B hiring hurts American workers, citing research showing that in 2021, the median salary for H-1B workers was $108,000, compared to $45,760 for all U.S. workers. Additionally, between 2003 and 2021, H-1B wages grew by 52%, outpacing the 39% growth of the general workforce.
However, this comparison is not entirely fair. H-1B holders are typically highly educated professionals working in white-collar jobs at large companies, while the broader U.S. workforce includes jobs across all industries and education levels.
When comparing H-1B workers to U.S. nationals in the same field, the wage gap becomes more apparent.
The Reality: H-1B Workers Are Often Paid Less for the Same Job
📉 A 2020 report by the Economic Policy Institute (EPI) found that 60% of all H-1B positions were assigned wage levels below the local median wage. In the tech industry, this translated to salaries 17% to 34% lower than those of comparable U.S. workers.
📉 Major tech firms have been found to pay H-1B workers less than the industry average.
For example:
- Tata Consultancy Services: Median H-1B salary = $67,766
- Accenture: Median H-1B salary = $94,400
- Industry-wide average tech salary at the time = $93,244
📉 A 2020 EPI report also highlighted that major U.S. tech firms, including Amazon, Google, and Microsoft, legally use the H-1B program to pay many of their foreign workers below the local median wage.
According to recent reports, H-1B visa holders constitute approximately 0.5% of the overall U.S. workforce. In contrast, 15% of Meta's U.S. employees are H-1B visa holders, indicating a higher reliance on foreign workers compared to the national average.
Who Is Really to Blame? The Problem Lies with Employers, Not H-1B Workers
While critics argue that H-1B workers are undercutting American wages, the reality is that H-1B workers are often the ones being exploited.
Many international workers are:
✅ Paid less than their American counterparts despite doing the same job
✅ Tied to a single employer due to visa sponsorship restrictions, making it harder to negotiate for better pay
✅ Subject to wage loopholes and outsourcing contracts that result in artificially low salaries
Rather than punishing H-1B applicants, the focus should be on holding employers accountable for unfair wage practices. Instead of shutting down the only legal pathway for skilled professionals, the U.S. should enforce stricter employer compliance to ensure fair pay across the industry and attract global talent.
What Should Indian Students Do to Stay Competitive?
With H-1B policies under scrutiny, Indian students applying this year should be proactive in securing strong job offers and preparing for possible policy changes.
✅ 1. Target Employers That Are Committed to H-1B Sponsorship
- Look for companies with a history of fair pay and long-term visa sponsorship.
- Avoid firms known for outsourcing contracts that pay below-market wages.
✅ 2. Aim for Higher Wage Levels (Level 2 and Above)
- With potential lottery selection changes favoring higher wages, negotiating for Level 2 or above can increase both your salary and H-1B approval chances.
*Determining specific salary ranges for each H-1B wage level requires consideration of the job title, geographic location, and industry. The U.S. Department of Labor (DOL) sets prevailing wages based on these factors, and they can vary significantly across different regions and positions. However, here is a general framework for understanding how these wage levels correspond to experience and job complexity:
H-1B Wage Levels Overview:
| Wage Level | Experience Required | Description |
|---|---|---|
| Level 1 | Entry-level (0–2 years) | Positions requiring a basic understanding of duties, typically for workers with limited experience. |
| Level 2 | Qualified (2–5 years) | Roles necessitating relevant education and experience: workers perform tasks with limited judgment. |
| Level 3 | Experienced (5–8 years) | Jobs demanding a deeper understanding and substantial experience may include supervisory duties. |
| Level 4 | Advanced (8+ years) | Senior positions requiring expertise and advanced skills often involve complex tasks and management responsibilities. |
Example Salary Ranges:
To illustrate how wage levels might translate into salary ranges, consider the occupation of Software Developers, Applications in the San Francisco, CA area for the 2024–2025 period:
- Level 1: Approximately $102,000 per year
- Level 2: Approximately $127,000 per year
- Level 3: Approximately $152,000 per year
- Level 4: Approximately $177,000 per year
✅ 3. Be Flexible with Locations & Job Titles
- Wages vary significantly based on location—consider moving to regions with lower competition and higher H-1B approval rates.
✅ 4. Keep Backup Options Open (Day 1 CPT, Canada, UK, etc.)
- If H-1B restrictions tighten, alternative options like Day 1 CPT or Canada PR programs can serve as a backup plan.
Final Thoughts: The Fight for Fair Pay in the H-1B System
With lawsuits like the Meta case bringing H-1B wages under scrutiny, it’s important to separate fact from fiction.
💡 Yes, many H-1B workers are paid less than U.S. nationals for the same roles.
💡 No, this is not the fault of the workers—it’s the employers exploiting the system.
However, regardless of whose fault it is, if Meta loses the case, Indian students will likely face:
✅ More scrutiny on employers hiring H-1B workers
✅ Potential delays or rejections in hiring processes
✅ Stricter enforcement of wage levels and compliance
If you’re applying for H-1B this year, now is the time to:
✅ Choose employers wisely
✅ Negotiate for higher salaries
✅ Stay flexible with job locations & titles
✅ Have a backup plan (Day 1 CPT, Canada, etc.)
The H-1B process is evolving, but with the right strategy, Indian professionals can still build a successful career in the U.S. 🚀
👉 Are you applying for H-1B this year? What’s your biggest concern? Drop a comment below!
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