Note: This is the second post on this topic. In the first post, I explained what the current H1B law provides for and what exactly the bill proposes to change. Please read that to get a full understanding of the situation.
The Protect and Grow American Jobs Act that was reintroduced last week by Rep Darrell Issa (R-CA) has received a large amount of attention from the Indian media due to its specific targeting of H1B visa changes. I have discussed in detail what the current law is and what the bill does previously. In this post, I will cover how the Indian media has incorrectly reported this bill.
To summarize the impacts of the bill, the following points should be sufficient:
- This bill applies only to H1B Dependent Employer (HDE) companies (those that have more than 15% of their workforce under H1B visas) and Willful Violator (WV) companies. It DOES NOT apply to ALL H1B visa seekers.
- The HDE and WV companies, unlike the rest of them, are required to recruit an American worker before applying a H1B visa for a foreign worker. They also cannot fire an American worker within 90 days before and 90 days after an H1B foreign worker is hired. They also cannot post the H1B worker at a different employer’s office. This is done to reduce visa abuse, to offer basic protection to American workers, and to ensure that only the best workers are hired under H1B.
- Under the current law, the additional requirements for HDE and WV companies, as shown in #2, can be easily bypassed in either of two ways. One is by hiring a foreign worker who has a Master’s degree in the area of the job. Second is by offering the foreign worker a minimum pay of $60,000 per annum. These two ‘exemptions’ allow the HDE and WV companies to bypass the additional requirements, thus making it very easy for them to abuse the visa system. (See the Disney H1B lawsuit for example).
- The new bill aims to change two things in the criteria that allows the HDE and WV companies to bypass the additional requirements (in #2). One, it aims to increase the minimum pay to $100,000 per annum. Second, it removes the Master’s degree exemption – meaning you cannot bypass the additional requirements just because the H1B worker the company plans to hire has a Master’s degree. This aims to close the loophole that allows visa abuses to take place.
So that was a summary of what is happening here. Now let us look at how the Indian media is reporting this news.
I will start with the most egregious falsification: The Hindu. The Hindu news article lists 6 separate items that it says the Bill aims to do. Only one of these is even partly correct. The rest are just outrageous falsifications. Let us look at them:
- The Bill prohibits companies from hiring H1-B employees if they employ more than 50 people and more than 50 per cent of their employees are H1-B and L-1 visa holders. ABSOLUTELY INCORRECT. There is no such language in the bill at all. Even the HDE company definition is incorrect going by this rule.
- The Bill encourages companies to recruit American workers. This provision would crack down on outsourcing companies that import large numbers of H-1B and L-1 workers for short training periods and then send these workers back to their home country to do the work of Americans, the Senators who introduced the Bill had said. This is a very generic statement offering no specific information on how the bill aims to do this. As a general intent of the bill, it is correct. But there is no language listing this explicitly.
- It explicitly prohibits replacement of American workers by H1-B or L-1 visa holders. ABSOLUTELY INCORRECT. The general intent to not replace American workers is indeed contained in the bill, as it is in the current law. But there is no ‘explicit’ language in the bill that talks about prohibiting replacement of American workers.
- The Bill seeks to give the Department of Labour enhanced authority to review, investigate and audit employer compliance as well as to penalise fraudulent or abusive conduct. ABSOLUTELY INCORRECT. Again, this is a very generic statement offering no information. More importantly, the bill text itself does not include any language in this regard.
- The Bill seeks to increase the minimum salary of H1-B visa holders to $1,00,000 per annum. INCORRECT AND MISLEADING. As discussed in the summary above, the minimum salary only applies to the H1B workers under the HDE companies seeking to bypass the additional requirements. This DOES NOT APPLY to all H1B visa holders, as this statement suggests.
- Currently, firms need not go through extensive paperwork if the potential H1-B employee has an equivalent of a Master’s degree or higher and he or she is paid at least $60,000 annually. The Bill aims to do away with the Master’s degree exemption (as “they are easily obtained by foreign workers”). PARTLY CORRECT. This is the only bullet point that has even a shred of correct information in it. As seen from the summary, what The Hindu lists as ‘extensive paperwork’ are essentially additional requirements that (only) the HDE and WV companies have to adhere to in order to ensure there is no visa abuse. Additionally, this statement mentions the Master’s degree exemption, but does not state what the exemption is for!
There is absolutely no excuse or justification for publishing such large amounts of wrong information on a leading national daily website (and presumably their newspaper as well). I am currently preparing an email to the Editor of The Hindu pointing out this outrageous misinformation. I do not expect a response, however.
The next biggest blunder I saw was from Zee News. Their article listed 3 separate items as part of the bill and its impacts. Here they are:
- To get H1B visa approved, you will have to fit in the salary bracket of $100,000 a year, up from $60,000 currently. ABSOLUTELY INCORRECT. This only applies for HDE companies looking to bypass additional requirements.
- One will need to have a Master’s degree, as recognized by the US. ABSOLUTELY INCORRECT!! Removing the Master’s degree exemption language is foolishly misinterpreted as a Master’s degree ‘requirement’!
- It is estimated that any change on visa law will largely impact companies who have more than 50 employees based in the US. INCORRECT. The HDE companies are those that have 15% or more of their workforce under H1B visas. Companies even under 50 employees have the HDE categorization.
It should be noted that the Master’s degree ‘requirement’ mentioned above is actually being listed in many newspapers and websites. This is completely incorrect. There is no such requirement at all! Do not confuse the removal of the Master’s degree exemption to the ‘requirement’ of a Master’s degree!
The bill among other things increase the minimum salary of H-1B visa to $100,000 per annum and eliminate the Masters Degree exemption.
And as we have seen, this is only partly correct and also does not include any information on what the actual exemption is. Additionally, the Economic Times ran a slightly different spin on this statement. This is what it said:
The new bill would require workers on the H-1B visa pay a minimum of $100,000, up from $60,000 currently. The bill also removes the Master’s degree exemption to the cap on the number of visas available.
The second line is what is total garbage. There is no impact to the ‘cap on number of visas available’ as this report states. The Master’s degree exemption is completely unrelated to the H1B visa cap of 85,000 per year. Completely false information!
I do not have access to all the local newspapers which may be carrying different incorrect versions of this information. But I do suspect most of these versions were covered by the big newspapers (not a compliment!). I do not know exactly what was discussed in all the ‘panel discussions’ on news channels, so I cannot comment on that. However, I do not expect it to be any different than what I have seen on the websites. I was also appalled at people in high positions in various big name companies provide quotes on this matter without knowing anything about it in the first place.
What did concern me though was that this false information was said to have caused a fall in the share price of these big IT companies. This should not happen. The media loves to profit from sensationalizing new developments. But in the process, it should also be made aware of its responsibilities to report correct news. This is not something that should even be pointed out. It should form the basic bedrock of their whole operation. But the fact that a regular guy like me can dig up the correct information within an hour – all on the internet – while paid journalists do not bother to do so, and in fact report falsified information, is a definite cause for concern.
The Oxford Dictionary listed ‘post-truth’ to be the word of the year 2016. Its definition is: Relating to or denoting circumstances in which objective facts are less influential in shaping public opinion than appeals to emotion and personal belief. We always counted on the news media to show us what is actual truth and what is not – to separate the facts from the claims. But not any more. It now appears that as citizens of the world, we now need to verify what the media is reporting (or not reporting) prior to believing them. It is indeed a scary realization of today’s world – that the media is, in fact, part of the ‘post-truth world’.
I am sure that makes a sensational news story.