Dear {name}:

These last two weeks have provided an embarrassment of topics to discuss, ranging from the Supreme Court ruling on birthright citizenship, to continued hostilities with Iran, to the fight to pass the Save Act, to the uncovering of egregious fraud, to election shenanigans in Maine, to name just a few. In this week’s sermon I will focus on just one.

Long overdue and with much fanfare, the Department of Labor’s (DOL) Office of Inspector General announced it would be launching an investigation into H-1B visa fraud and human trafficking. Specifically, they will be targeting wage and labor violations that include various dubious practices which bilk workers of pay, involve kickbacks, and hide H-1Bs being on the bench. They will also investigate fraudulent applications that cover fabricated job offers, misrepresentation of job roles, and salaries.

It is not hyperbole to say that this is an unprecedented action on the part of the Secretary of Labor (SOL). Investigations such as this require the explicit approval of the SOL and, to my knowledge, this is the first time this has happened. It is bold and it is encouraging to see but....

Fraud is a smaller consequence when compared to other aspects of the H-1B program. The most flagrant harm to Americans that occurs, through displacement, wage deflation, and outright discrimination, is legal. These are sanctioned in the Immigration and Nationality Act. And this is where DOL can enact policy that would in practice curb corporate America’s appetite for H-1B visa holders. For instance, it is within the purview of DOL to:

•    Create a national electronic jobs registry for PERM recruitment. When a company opts to sponsor an H-1B for a green card the process is referred to as PERM (Program Electronic Review Management), in which the sponsor must certify they could not find a qualified American for that specific job. For decades corporations and their shady consultants have found ways to undermine this process by ensuring Americans never see the job postings. A registry would rectify that.

•    Raise and reform the prevailing wage for H-1Bs. Companies have been able to game the system and pay H-1Bs less than Americans by being allowed to use their own wage surveys when arriving at a prevailing wage. The federal government has extensive wage data, and it is this data which should be used when devising a prevailing wage.

There are of course other needed reforms and DOL appears to be eyeing rule changes that would reform the PERM process and ensure wages paid to foreigners do not undermine opportunities for Americans. Shining a light on the games corporations play, and frustrating them, creates friction. Create enough friction, and employers will simply opt out of these employment visa programs.

We are in the end, dear readers, making progress as slow and long in coming as it may be.

Onward,

Kevin Lynn

Executive Director, Institute for Sound Public Policy

Founder, U.S. Tech Workers