🧵You thought the H-1B visa was bad? Wait until you hear about the largest guest worker program killing jobs for new American college grads—the Optional Practical Training (OPT):
• No caps
• Employers get payroll tax exemptions
• No wage requirements
@NumbersUSA explains:
OPT was originally a 1-year work permit for international students graduating from U.S. colleges to gain U.S. work experience to take back to their home countries. It was never meant as a permanent immigration pathway, but rather a short-term opportunity for skill development
OPT was intended as a short-term work permit, but it evolved into a tool to secure U.S. jobs and a pathway to for securing long-term work visas like the H-1B. Employers saw OPT workers as desperate, willing to do anything for H-1B sponsorship before their permit expired.
In 2008, Bill Gates lobbied Congress to expand H-1B caps, claiming a tech worker shortage. However, there was significant pushback and it was pointed out that Microsoft was laying off U.S. workers while simultaneously advocating for more foreign labor.
After Bill Gates failed to get Congress to pass an immigration bill expanding H-1B visas, he enlisted lobbyist Jack Krumholtz to devise a plan using the OPT program to bypass the H-1B caps.
At a cocktail party, lobbyist Jack Krumholtz met then-DHS Secretary Michael Chertoff under George W. Bush and pitched his proposal to expand the OPT program. He suggested extending its duration beyond 1 year, effectively creating a workaround for H-1B visa caps.
In the months after Krumholtz's meeting with Chertoff, universities and the Chamber of Commerce launched a massive lobbying push to extend OPT. Their efforts succeeded! Through administrative regulations, they effectively created a new guest worker program without needing congressional approval.
The new OPT program, called STEM-OPT, allowed international students with STEM degrees to extend their OPT from 1 year to 29 months. This extension gave them more time to work in the U.S. and provided employers with a new pipeline for cheaper compliant labor.
After STEM-OPT was introduced, the number of international students, particularly from India and China, skyrocketed. Universities actively advertised STEM-OPT to attract these students, seeing them as a lucrative source of revenue.
Some universities, like UC Berkeley, began designating degrees like Journalism as "STEM" to capitalize on the lucrative STEM-OPT wave. This allowed them to attract more international students, tapping into a profitable market while offering extended work permits as an incentive.
The number of STEM-OPT work permits skyrocketed, making it the largest guest worker program in the U.S. It now surpasses the H-1B visa program in yearly issuance.
A lawsuit was filed by @IRLILaw against the illegal creation of the STEM-OPT program. In response, the Obama administration proposed a new rule, which ultimately extended the STEM-OPT program to 36 months, further expanding the duration for foreign students to work in the U.S.
There was another lawsuit against the illegal creation of STEM-OPT, including a notable case from the Washington Alliance of Tech Workers v. DHS. However, courts consistently shut down the challenges, and an appeal to the Supreme Court ultimately went nowhere.
What makes the OPT program so sinister is its lack of wage rules—employers can pay OPT workers as little as "unpaid interns." Additionally, the government incentivizes hiring foreign grads over American ones by offering employers payroll tax exemptions through the IRS.
Remember the Boeing 737-Max crashes caused by glitchy software, and how Bloomberg revealed the work was outsourced to foreign workers at Indian IT firms for $9/hr? There's speculation those workers were on OPT based on an article by The Atlantic:
In closing, the OPT program is a guest worker scheme disguised as an internship for foreign students. Universities are selling work permits instead of education. Created illegally like DACA, Trump should end OPT to protect American college grads from unfair competition.
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Big Tech: “We can’t find qualified Americans to fill these positions.”
Also Big Tech: “We need to place these PERM job ads where no Americans will see them.”
Facebook “couldn’t find qualified Americans” — so they hid jobs from their careers site, refused to consider U.S. workers, and made applicants mail resumes by postal mail, DOJ says.
Apple “couldn’t find qualified Americans” — so they hid jobs from their careers site, refused to consider U.S. workers, and made applicants mail resumes by postal mail. Paid a fine and settled with the DOJ.
Trump admin is defending an Obama-era policy that grants work authorization to the spouses of H-1B workers from India in the Green Card queue — even though Congress never approved it — and is urging SCOTUS to toss out a case brought by former U.S. tech workers.
In 2015, Obama’s DHS unilaterally gave certain H-4 visa holders — spouses of H-1B guest workers — the right to work in the U.S., even though Congress never approved it.
This has opened the door for hundreds of thousands of additional foreign workers to compete directly with Americans for jobs, despite the original H-4 visa having no work privileges.
While H-1B workers are bound to their employers and must file a labor condition application to ensure they are paid a prevailing wage and that their presence won’t harm American workers (though it’s obviously a rigged process), H-4 EAD holders face none of those requirements — they can work ANY job at ANY wage level.
If you want to understand how the law lets employers legally pay H‑1B workers less than market wages and how that harms American workers, our latest Substack explains it.
🧵 THREAD:
At the heart of this is the Labor Condition Application (LCA), a brief form employers submit to @USDOL before hiring H‑1B workers.
It’s meant to protect local wage standards and keep Americans from being undercut. In practice, it’s a rubber‑stamp process with no real scrutiny.
The system relies on employers to truthfully select wage levels based on an H‑1B worker’s skills and experience. But because the DOL can’t verify that information, employers exploit this asymmetry, labeling skilled roles as entry‑level to pay lower wages:
1/ While American engineering graduates struggle with stagnant wages and limited job opportunities, they face an additional challenge that receives insufficient attention: intense competition from foreign guest workers who are systematically imported to fill engineering positions.
The scope of this competition is staggering. In 2023, while America graduated 137,237 citizen engineers with bachelor's or master's degrees, the federal government simultaneously approved at least 33,836 foreign guest workers with engineering backgrounds through just three major guest worker programs.
NYT: “… tariffs reduce trade by making goods more expensive; they don’t affect services or offshoring, the practice of hiring workers overseas… Indian workers are doing the kind of jobs that Americans workers envy — for American companies.”
Major American tech companies, along with leading American banks, proudly highlight their large offices in India and remain unconcerned about Trump’s tariffs. They believe his focus is mainly on the $46 billion trade deficit, rather than on the offshoring of professional jobs.
Why are American companies offshoring to India? It’s for cheap labor of course, which corporate admits saves costs. But that doesn’t stop reporter @travelli from pushing the debunked “labor shortage” propaganda. Imagine claiming this amid mass tech layoffs in the U.S. right now.