Introduction
Every year, many people aspire to secure an H-1B visa, hoping for a better life in America. This visa allows them to work in the US, but with only 85,000 visas available annually, the competition is intense.
The Rigged System
Imagine applying for an H-1B visa and discovering that the system might be rigged. According to data obtained by Bloomberg, some companies have been manipulating the lottery system to gain an unfair advantage over those who follow the rules.
What is Multiple Registration?
The data reveals that a form of cheating, known as “multiple registration,” has become widespread. This tactic involves submitting more than one lottery entry for the same person to increase their chances of winning. Federal officials consider this practice to be fraudulent. Bloomberg estimates that about 15,500 visas, roughly one out of every six awarded last year, were obtained through this method.
Case Study: India’s Kandi Srinivasa Reddy
Kandi Srinivasa Reddy, an individual from India, allegedly set up 13 related companies and submitted over 3,000 registrations for around 288 employees. This meant there were more than 10 registrations per applicant, giving them a significant edge over those who submitted just one registration. The selected candidates were then leased out to tech companies in the US, with a portion of the worker’s pay collected as commission.
H-1B Visa Lottery System and Its Loopholes
In the mid-2000s, the demand for tech workers in the US surged, causing all available H-1B visas to be taken within a day or two. To manage this, the US Citizenship and Immigration Services (USCIS) created a yearly lottery to decide which applications would be considered. Over time, the odds of winning this lottery decreased.
Concerns About Outsourcing Companies
Policymakers have long been worried about the influence of outsourcing companies in the visa system. These companies often shift US jobs to India and prefer visa workers who accept lower wages and are more willing to relocate. Despite attempts to limit their access to H-1B visas, they remain the biggest users of the program.
Role of Reddy
Reddy’s companies allegedly collaborated to manipulate the H-1B lottery, securing over 300 visas since 2020. While companies playing by the rules received less than half the visas they requested, Reddy’s candidates were almost guaranteed to win. Most didn’t even complete the visa application process, yet his companies still got 54 visas, more than in any previous year.
How Did Other Staffing Firms Catch On?
By last year, many staffing firms had adopted similar tactics, flooding the system with multiple entries for the same workers. This led to companies using these strategies to secure around 40,000 H-1Bs over four years. The median salary for staffing firm workers was lower than that for employees of regular companies, highlighting the difference in the type of workers being admitted.
Were the Lottery Rules Clear?
Some argued that the lottery rules were vague, allowing companies to exploit loopholes without technically breaking rules. However, the USCIS disagreed, revoking visas obtained through multiple registrations and referring cases for criminal investigation.
What’s Happening Now?
Despite changes, some firms continue to exploit the system. Advertisements from recruiters boasting about their success in obtaining H-1Bs and offering to help enter workers’ names multiple times in the lottery have reappeared.
Action Taken by the US Government
The US government has taken measures to tighten the work visa regime. The USCIS increased the H-1B registration fee to $215 from $10 and the application fee to $780 from $460. It also added a $600 asylum fee while filing H-1B and other petitions, making the process costlier.
Conclusion
Some businesses have taken advantage of the H-1B visa lottery system by registering multiple times. While the US government has taken steps to address this issue, the challenge remains to ensure a fair and transparent process for all applicants.
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