they can endure such jobs only for 6yrs, beyond which the company that sponsored the visa has to file for a green card (if they do, then the employee can continue suffering for a few more years).If they dont file for a GC, then its a one way ticket back to their home country (or go to Canada with a PR ready).
the 70-30 split, is something I used to fume about, thinking its unfair to the employee etc. But that is how contracting companies work (not just for H1b employers). They pay the employee $.7X, and charge the client $X for every hr worked.
the benefit for the final company is that the headcount of H1b employees on paper remains low, and the cost of H1b kinda gets prorated into the hourly rate. It doesn't make sense to hire an H1b if the company knows for sure that they need her for just one/six months or a year. But a staffing consultancy can certainly justify filing for the H1b, if the same employee can work with 3 clients for 1 year each.
Though this looks like they (the companies filing for H1b visa) are doing something illegal, it is not, as long as a LCA (Labor Condition Application) is filed for the client's location and is approved, its totally kosher with USCIS, DHS and DoL.
Sadly, its hell for those on such H1bs (and I'm glad to never have worked with such consultancies)
the problem exists with those h1b consulting companies, that fudge resumes, fake phone interviews to get someone with zero knowledge into a job with a client. Those are the companies that are poisoning the well and making it tough for people like us and employers like mine, who are using the H1b option the way it is meant to be. In fact, its worse for those who who studied in US, and worked with an employer for ~2 years on Optional Practical Training (work auth while on student visa after graduation), lose out on H1b lottery because it was oversubscribed by such fraudsters. Its not just the employee losing out, even the company that invested in that employee is losing out.
Once, I interviewed a senior engineer to join my team and it was shocking for me to come across a resume that was as experienced as I was, but had zero knowledge. Later did some prodding on the candidate's past experience, realized its a fake resume with fake experience.
I can only pity those h1b employees at this scamming company. The sad H1b rules, that tie them to the sponsoring employer, is the reason such practices exist.
> They pay the employee $.7X, and charge the client $X for every hr worked.
That's a failing consulting company. A profitable consulting company needs to bill at 3x to 5x wages to support the overhead of sales and management. Even an individual, with no overhead but themselves, needs to bill at 2x what their desired wage would be if full-time.
I read original comment far above as saying that the company takes 70%, leaving 30% for the H1b employee. Or if the employee finds their own "job" (consulting gig), then the company only takes 60%. As you say, that seems more in line with typical consulting hourly mark-up.
they can endure such jobs only for 6yrs, beyond which the company that sponsored the visa has to file for a green card (if they do, then the employee can continue suffering for a few more years).If they dont file for a GC, then its a one way ticket back to their home country (or go to Canada with a PR ready).
the 70-30 split, is something I used to fume about, thinking its unfair to the employee etc. But that is how contracting companies work (not just for H1b employers). They pay the employee $.7X, and charge the client $X for every hr worked.
the benefit for the final company is that the headcount of H1b employees on paper remains low, and the cost of H1b kinda gets prorated into the hourly rate. It doesn't make sense to hire an H1b if the company knows for sure that they need her for just one/six months or a year. But a staffing consultancy can certainly justify filing for the H1b, if the same employee can work with 3 clients for 1 year each.
Though this looks like they (the companies filing for H1b visa) are doing something illegal, it is not, as long as a LCA (Labor Condition Application) is filed for the client's location and is approved, its totally kosher with USCIS, DHS and DoL.
Sadly, its hell for those on such H1bs (and I'm glad to never have worked with such consultancies)