Not gun related; Cruz related
Posted: Tue Dec 15, 2015 1:37 am
Ok this is really weird. Ted Cruz, the guy we all love to hate, has apparently put forth a bill that is ... well ... it has a LOT of good stuff in it. Powerfully good stuff.
http://www.cruz.senate.gov/files/docume ... rstAct.pdf
Here are some excerpts:
1) Sets a minimum salary on H1B of $110,000 per year. Keeps the prevailing wage statement, but sets a minimum as well; i.e. whichever is higher is the one used.
2) There is a 2 year "cool off" period after any layoff, furlough, employee strike, lockout, etc. during which the employer may not hire so much as 1 single H1B worker. This one is worded real strictly. If even 1 single worker is terminated without cause, the company goes into that 2 year cool off period.
3) Employers can't force an H1B holder to pay a penalty if they leave before their agreed upon date.
4) Employers can't deduct any fees associated with H1B from the H1B recipient's pay
5) Employers can't charge H1B recipients for vehicle, lodging, etc. If lodging and transportation is provided by the employer, they have to do so free of any charge.
For those unfamiliar with H1B, it is a type of work visa for workers with skillsets are that in "high demand" and "cannot be found in the United States".
H1B requirements state that workers must be paid above the prevailing wage for that position so as to prevent using H1B as a means to import foreign workers for skilled jobs and thereby suppress wages. In this function, it has failed. It is also supposedly not granted unless you can demonstrate that you cannot find enough US workers with that skillset. It is EXTREMELY easy to get around both requirements. Create a job with a unique title and a skillset requirement that is physically impossible. For example, 15 years of Android SDK experience. Any US worker who has this on their resume is lying so you can exclude them and say they were lying on their resume as your reason for excluding them. The unique title allows you to define the prevailing wage since no one else has that title. Either that or you can give them a title for a job that has a much lower wage than the one you are REALLY hiring for.
At many companies H1B is not abused in this manner. The big names like Google, Amazon, etc. all pay their H1B holders well. However, the largest holders of H1B and the average salary of those on H1B at those companies:
Infosys - 23,816 visas - $76,794
Tata Consultancy Services - 14,096 visas - $67,673
Wipro - 8,365 visas - $69,936
Those 3 companies are scumbag pieces of shit who fuck over workers. There's no mincing words. Please keep in mind that the jobs these companies contract for are replacing workers that are paid well into 6 figures.
The "2 year cool off" thing is pretty harsh, but I didn't see anything in there about hiring contractors. Remember that contractors who are working for you through a contracting company are employees of the contracting company and NOT your employees. Any H1B they might be here on is back by their employer which is the contracting company. So, for example, I don't think what Disney did would have been prevented by this.
However, the only reason companies layoff a ton of people and replace them with contractors is because the contractors are cheaper. Please note, in the list above of H1B and their average salaries that these are averages, not minimums. They are offset by a number of H1B holders in high positions at those firms. There are H1B holders in Director and senior management positions at those companies who do not typically go out on contracting gigs. They make hundreds of thousands of dollars. The wage of a typical software engineer from Infosys is closer to 50k than 76k. If you fire a bunch of workers who made, let's say, 120k. The hourly rate would have to be less than 60 an hour to make your money back. Your typical contractor at one of the top 3 mentioned above is likely paid by his employer around $25 per hour. That's a lot of wiggle room for profit for both the contracting company and the employer who just laid off their workers.
What happens then if those software engineer grunts go from 50k all the way to 110k? It means in order to have enough profit to stay in business, the contracting company's rates jump way above $60 an hour. At that price, it's no longer worth it for the employer to layoff their American workers.
Btw, for these types of jobs, most companies have now realized that attempting to offshore as a means of replacement results in disaster. Offshoring for skilled jobs mostly happens for 2 reasons:
1) Need for rapid expansion with low cost (i.e. new jobs)
2) Need to cover night shift with more people
Anyway, this is shocking coming from Ted Cruz. Not just because I think it's a pretty good bill. That in and of itself is shocking coming from Ted Cruz. What's even crazier is that Ted Cruz just like 1 or 2 years ago was practically Mr. H1B trying to double or triple the number of visas issued.
http://www.cruz.senate.gov/files/docume ... rstAct.pdf
Here are some excerpts:
1) Sets a minimum salary on H1B of $110,000 per year. Keeps the prevailing wage statement, but sets a minimum as well; i.e. whichever is higher is the one used.
2) There is a 2 year "cool off" period after any layoff, furlough, employee strike, lockout, etc. during which the employer may not hire so much as 1 single H1B worker. This one is worded real strictly. If even 1 single worker is terminated without cause, the company goes into that 2 year cool off period.
3) Employers can't force an H1B holder to pay a penalty if they leave before their agreed upon date.
4) Employers can't deduct any fees associated with H1B from the H1B recipient's pay
5) Employers can't charge H1B recipients for vehicle, lodging, etc. If lodging and transportation is provided by the employer, they have to do so free of any charge.
For those unfamiliar with H1B, it is a type of work visa for workers with skillsets are that in "high demand" and "cannot be found in the United States".
H1B requirements state that workers must be paid above the prevailing wage for that position so as to prevent using H1B as a means to import foreign workers for skilled jobs and thereby suppress wages. In this function, it has failed. It is also supposedly not granted unless you can demonstrate that you cannot find enough US workers with that skillset. It is EXTREMELY easy to get around both requirements. Create a job with a unique title and a skillset requirement that is physically impossible. For example, 15 years of Android SDK experience. Any US worker who has this on their resume is lying so you can exclude them and say they were lying on their resume as your reason for excluding them. The unique title allows you to define the prevailing wage since no one else has that title. Either that or you can give them a title for a job that has a much lower wage than the one you are REALLY hiring for.
At many companies H1B is not abused in this manner. The big names like Google, Amazon, etc. all pay their H1B holders well. However, the largest holders of H1B and the average salary of those on H1B at those companies:
Infosys - 23,816 visas - $76,794
Tata Consultancy Services - 14,096 visas - $67,673
Wipro - 8,365 visas - $69,936
Those 3 companies are scumbag pieces of shit who fuck over workers. There's no mincing words. Please keep in mind that the jobs these companies contract for are replacing workers that are paid well into 6 figures.
The "2 year cool off" thing is pretty harsh, but I didn't see anything in there about hiring contractors. Remember that contractors who are working for you through a contracting company are employees of the contracting company and NOT your employees. Any H1B they might be here on is back by their employer which is the contracting company. So, for example, I don't think what Disney did would have been prevented by this.
However, the only reason companies layoff a ton of people and replace them with contractors is because the contractors are cheaper. Please note, in the list above of H1B and their average salaries that these are averages, not minimums. They are offset by a number of H1B holders in high positions at those firms. There are H1B holders in Director and senior management positions at those companies who do not typically go out on contracting gigs. They make hundreds of thousands of dollars. The wage of a typical software engineer from Infosys is closer to 50k than 76k. If you fire a bunch of workers who made, let's say, 120k. The hourly rate would have to be less than 60 an hour to make your money back. Your typical contractor at one of the top 3 mentioned above is likely paid by his employer around $25 per hour. That's a lot of wiggle room for profit for both the contracting company and the employer who just laid off their workers.
What happens then if those software engineer grunts go from 50k all the way to 110k? It means in order to have enough profit to stay in business, the contracting company's rates jump way above $60 an hour. At that price, it's no longer worth it for the employer to layoff their American workers.
Btw, for these types of jobs, most companies have now realized that attempting to offshore as a means of replacement results in disaster. Offshoring for skilled jobs mostly happens for 2 reasons:
1) Need for rapid expansion with low cost (i.e. new jobs)
2) Need to cover night shift with more people
Anyway, this is shocking coming from Ted Cruz. Not just because I think it's a pretty good bill. That in and of itself is shocking coming from Ted Cruz. What's even crazier is that Ted Cruz just like 1 or 2 years ago was practically Mr. H1B trying to double or triple the number of visas issued.