Quartz India and Harvard Professor’s Insufficiently Researched Proposal on “Fixing the H-1B program”
Quartz India recently published an insufficiently researched proposal by Harvard Professor on “Fixing the H-1B program” in which the Professor erroneously relies on last year’s debunked fake news story claiming the “H-1B minimum wage” is “$60,000“.
To complement wage ranking and to preserve scarce visas for the best uses, America should also raise the H-1B minimum wage from $60,000 to a higher figure like $100,000, perhaps with a few lower thresholds for occupations like social work or entrepreneurship. This minimum level can be designed with automatic adjustments for future years that are based on inflation or changes in average US wages. If a higher minimum wage causes demand to fall short of supply at times, unused visas can be saved and reintroduced when supply becomes again constrained, with visas that sit too long simply expiring. There are downsides to wage floors, such as their mismatch to innovative jobs that may be better served with heavy equity incentives, but minimum wages can provide strong assurances to the public that visas are being put toward best uses.
The Professor appears to have based his magical $60,000 figure on incorrect news articles reporting on U.S. Rep. Zoe Lofgren’s (D-Calif.) proposed legislation last year entitled, the “High-Skilled Integrity and Fairness Act of 2017”. As I had noted on January 31, 2017, there is no $60,000 minimum H-1B wage, and that Lofgren’s legislation was only attempting to increase the level at which an H-1B petitioner could avoid H-1B Dependent status.
And in any case, even if you hypothetically assume that $60,000 was a true figure, there are already simple mechanisms in place increase this level at any time, which in fact have already largely been implemented:
- the Dept of Labor sets prevailing wage levels for H-1B professions EVERY YEAR IN JULY. The DOL can and generally does increase these wage levels every year.
- at the end of March 2017, the USCIS issued a surprise policy change effectively holding Level 1 Prevailing Wages to be insufficient in establishing eligibility for H-1B approval, particularly for IT workers.
On the topic of wages, I wish to note that this Administration seems intent on reducing H-1B approvals, especially to Indian IT workers and their Petitioners, and the wage issue is, in my opinion, already addressed and now just an excuse. Otherwise qualified Level 4 (top) wage earning IT H-1B workers are not automatically spared a denial. The H-1B program, as set out by Congress, has been modified repeatedly by several “pop goes the weasel” style policy changes and multiple “reinterpretations” of existing H-1B laws and guidance at the behest of of this Administration, the latter driven by motives that obviously go beyond simple or logical issues like DOL issued wage rates.