Sorry to cut the celebrations short. After reviewing the details of the proclamation:
• The proclamation DOES NOT apply to individuals already in the U.S. on H-1B status, or to student visa holders on OPT seeking to change their status to H-1B.
• It applies only to individuals outside the United States who are being sponsored for H-1B visas and seeking entry. This is specifically aimed at the Indian IT outsourcing companies whose business model is to sponsor large numbers of foreign workers abroad and bring them into the U.S. on H-1B visas. They may shift to sourcing workers who arrived on student visas or to heavily utilizing L-1 visas.
• H-1B workers could also be affected if they ever travel abroad and require visa stamping in order to return to the United States, even if they are otherwise in valid status.
The proclamation isn’t terrible, but it falls short of truly helping American workers and STEM graduates. Companies like Google and Microsoft won’t be affected, because they source their foreign workers through L-1 visas or from those who arrived on student visas. So when @howardlutnick said tech companies support it, now we know why.
If the Trump administration truly wants to help American tech workers and STEM graduates, it needs to end the OPT program, which was created entirely through regulation. Otherwise, it isn’t serious about fixing this issue.
The administration realized some employers might game the rule by bringing workers on tourist visas (B visas) and then convert them to H-1B to dodge the $100k fee, so they added a clause to deter that tactic. But this means other visas, like student visas, are exempt.
One positive in the proclamation: it forces @USDOL to raise prevailing wage levels and directs @DHSgov to prioritize visas for the highest-paid foreign workers while closing loopholes that let employers favor them over Americans.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
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.