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Yes, auctions will be similarly gamed.

I think one easy thing to do to ensure that small cos and rural areas still have access is to require all h1b hires to be level 4, the highest level. As it stands now more than 70% are hired at levels 1 and 2 (2018 data), which are essentially "below average" which is weird for a program aimed at bringing in those with hard to find skills.



I was browsing the H-1B data out there. Some jobs seemed like borderline first level customer service jobs when I went looking at what was at the location listed.....way way not the kind of job that is hard to find people for... provided you pay reasonably well.


It's a bimodal distribution.

H1B doesn't really have a job market test. You just need to justify it's a job that requires a bachelor's degree and pays whatever the DOL wage data says should be the prevailing wage for that classification. It's not that difficult to game the system by playing around with job level, title and location and getting away with the lowest possible pay. This is basically the business model of staffing agencies and contractors.

It's also being used by many genuine employers looking for talent and highly specialized skills. Cost isn't a concern here as their business model relies on making the best product.


How will auctions be gamed?


Unless it's specified to be 120k hard cash, it would turn into 120k total compensation including company accommodation worth 60k/year, various practically-not-claimable options, or others ways.


The law would have to specifically carve in consideration of in-kind benefits for that to happen, and I see no reason to do so. Why would it?


The current "prevailing wage determination" includes fringe benefits already. There's definitely a way to play with those to redirect it back to the company.


I'm pretty sure this is incorrect, unless you have a citation for this. The base pay has to be more than prevailing wage. You can't count any kind of bonus or stock-based compensation. This is based on personal experience.


This is just from a light research, so please correct if there are better links, but https://internationaloffice.berkeley.edu/h-1b_faqs#1

> The H 1B also requires that the H-1B employer pay the H-1B employee the prevailing wage or the actual wage, whichever is higher.

And https://www.dol.gov/whd/h1bworkers.htm

> and you must be offered fringe benefits on the same basis as offered to U.S. employees.

But now that I read it again, they may be separate things that don't sum up. Is that what you meant?


Right. I understand that as "H-1B holders can't be offered an inferior health plan/401k plan/commuter benefits/bonus plan/FSA than US employees". But none of those things count toward the prevailing wage calculation. Only base pay is considered when determining whether the employee is paid more than prevailing wage.


Oh I should have said 120k cash, healthcare with no copay or something ;)


The base pay offered i.e. hard cash already has to be >= prevailing wage under current law. Bonuses and even stock-based compensation are not counted.




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