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Job brokers steal wages and entrap Indian tech workers in US

theguardian.com

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Re: Job brokers steal wages and entrap Indian tech workers in US

#81

Post by klipt »

induscreep wrote: post #42
saurabhnanda wrote: post #29

Is penalising early exit through contractual terms illegal? If not, then isn't this just a case of who has more leverage when negotiating the employment contract? That, and the fact that Indians are so desperate to go to the US that they're willing to sign any contract. PS: I'm an Indian working in India.

Penalizing early exit with loss of immigration status could be illegal...penalizing with money is probably not.

Having an employee pay visa fees for an H1-B is illegal: http://www.hackinglawpractice.com/video/h1b-employees-cannot...

Therefore if the penalty for "early exit" is there to cover the visa and legal fees, that penalty is illegal.

http://blog.laborlawcenter.com/news/virginia-company-pays-17...

> A firm specializing in information technology has been ordered to pay nearly $1.7 million in back wages to H-1B non-immigrant workers following an investigation by the U.S. Department of Labor in a case that should sound a warning for every employer.

> Investigators also found that the Virginia company charged new H-1 B workers fees for training ranging from $1.000 to $2,500. Such fees are in violation of the law.

Re: Job brokers steal wages and entrap Indian tech workers in US

#82

Post by klipt »

gleenn wrote: post #28

I think it is terrible that companies are taking advantage of foreigners, but I also keep seeing this $20,000 number thrown around a lot. That's how much it costs for a company to apply for an H1B. The companies should not be using that to prevent people from quitting, but it is a very real, large expense to getting workers from out of the US. The flip side of the argument isn't great either. If Softcorp or whatever…

> It's just really sad that this means Softcorp, etc know they can use that as a leash and treat the worker like crap.

Legally they can't hold employees liable for H1-B legal fees. Companies have been sued for millions for doing this, even when they framed the fees as 'training': http://blog.laborlawcenter.com/news/virginia-company-pays-17...

"Investigators also found that the Virginia company charged new H-1 B workers fees for training ranging from $1.000 to $2,500. Such fees are in violation of the law."

> If Softcorp or whatever pays a small fortune to get someone an H1B, that person shouldn't turn around and leave immediately either.

Then Softcorp should make their compensation competitive.

Re: Job brokers steal wages and entrap Indian tech workers in US

#83

Post by keerthiko »

winter_blue wrote: post #74
induscreep wrote: post #45

Earlier quoted context omitted.

H1B portability is a misnomer. All that happens is that the new employer applies for a new H1B for you, which is not subject to the cap. So you are just tied to the new employer. Portability here just means that you can choose which employer to be tied to. http://www.immihelp.com/visas/h1b/h1-transfer.html

You do realize that "tied to" implies that you can't change jobs? But that's not the case with H-1B workers. You can switch jobs at will, and even work multiple jobs (with concurrent petitions) at the same time. Furthermore, AC21 enables you to begin working as soon as your next/future employer has filed a petition – so you don't have to wait until USCIS makes a decision. With a good employer and attorney, USCIS will…

I'm 99% certain actually being on the payroll of multiple companies while on H1B is a felony. You can still be working for your original employer while your petition with the new one is underway, or start working with the new one once you receive your petition receipt, but definitely not both at the same time.

I'm not sure what industry you're in, but 20k out of a software dev's 60k-100k salary is a very very big drop, especially for a junior/fresh grad hire. And of course, 20k lump sum is out of the question for many startups.

Re: Job brokers steal wages and entrap Indian tech workers in US

#84

Post by klipt »

enraged_camel wrote: post #31
gleenn wrote: post #28

I think it is terrible that companies are taking advantage of foreigners, but I also keep seeing this $20,000 number thrown around a lot. That's how much it costs for a company to apply for an H1B. The companies should not be using that to prevent people from quitting, but it is a very real, large expense to getting workers from out of the US. The flip side of the argument isn't great either. If Softcorp or whatever…

>>but I also keep seeing this $20,000 number thrown around a lot. That's how much it costs for a company to apply for an H1B. To clarify, the actual application cost varies between $2500 and $5000[1]. The problem is that on most years, the visas are given only to a percentage of the applicants. For example, if someone is switching from OPT to H1B and they don't win the RNG game, the cost to the company can be enormou…

> For example, if someone is switching from OPT to H1B and they don't win the RNG game, the cost to the company can be enormous.

No, the fees are returned if the petition isn't selected.

Re: Job brokers steal wages and entrap Indian tech workers in US

#85

Post by freshflowers »

This is neither unique for tech workers nor unique for the US. It has been happening in many professions for decades.

Tech is just specifically vulnerable, because despite all evidence to the contrary (wage suppression, the huge discrepancy between reported talent shortage and actual salaries) we drank the industry kool-aid and believe we don't need no stinkin' unions and government regulation, and that we techies are part of the lucky middle class that will remain. Most of this complacency is caused by the fact that we still have pretty decent salaries compared to most other workers, but of course that is also what makes us a nice big juicy target for dubious practices.

Re: Job brokers steal wages and entrap Indian tech workers in US

#86

Post by ameen »

Sven7 wrote: post #71
fadzlan wrote: post #37

Worked with one big Indian company here in Malaysia last time and I see intimidation as common means of dealing with employees. Unfortunately, it doesn't really work well here, since most of people have a lot of choices moving around. I've been pushed to accept work that has a minimum wage in a different country, despite my experience and the fact I can't possibly survive with my family there. I've had my resume jack…

How do they get them to pay a years worth of salary if they quit? I doubt this ever happens. Though I don't doubt fresh grads believing them and sticking it out.

Ha, this isn't even as severe as what goes on. Some companies ask to pay upto 75% of their annual salary as a security deposit (refundable on quitting with some T&C).

Re: Job brokers steal wages and entrap Indian tech workers in US

#87

Post by thewarrior »

Sven7 wrote: post #78
thewarrior wrote: post #70

I'm working at a company in India and our bond period is upto 3 years long. Imagine that.

What happens if you break it?

You have to deposit money initially in a joint escrow account which they can then seize or make very difficult for you to get in case you leave.

Re: Job brokers steal wages and entrap Indian tech workers in US

#89

Post by danmaz74 »

> Contracting with labor brokers also benefits US employers. They can staff up swiftly for temporary jobs and slim down just as fast, with workers paid below-market rates.

I really don't understand why H1B visas aren't tied to the worker's pay. Considering that they're intended for difficult to find specialists, it should be easy enough to weed out fake applications by tying the visa to an at least average salary for the sector.

Re: Job brokers steal wages and entrap Indian tech workers in US

#90

Post by reduce »

fadzlan wrote: post #37

Worked with one big Indian company here in Malaysia last time and I see intimidation as common means of dealing with employees. Unfortunately, it doesn't really work well here, since most of people have a lot of choices moving around. I've been pushed to accept work that has a minimum wage in a different country, despite my experience and the fact I can't possibly survive with my family there. I've had my resume jack…

"For fresh grad though, if they quit earlier than 18 months, they have to pay almost a year of their salary, which seems reasonable when there are trainings when they joined the company."

No, that is not ever reasonable anywhere in any situation. May be typical, but not reasonable.

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