Commentary

InformationWeek
InformationWeek  

Program Analyst Job Pays $454.5 Million, So It Seems Or Not

Funny thing with numbers, they can tell much or little about the truth. Take, for instance, whether foreign nationals who enter the United States with H-1B visas in hand are paid the prevailing wage as the law requires.

Funny thing with numbers, they can tell much or little about the truth. Take, for instance, whether foreign nationals who enter the United States with H-1B visas in hand are paid the prevailing wage as the law requires.Last week, the Government Accountability Office reported that 3,299 H-1B visa holders received substantially less than the prevailing wage, and that was according to data provided by employers submitting petitions requesting foreign talent with specialized skills. The Labor Department contends it's doing a great job monitoring compliance with prevailing wage laws, noting that only 0.3% of applications showed prevailing wages weren't being paid.

Malarkey, contends the H-1B critics. "That 99.7% figure is egregiously misleading, but Congress will happily accept it, as will the press," H-1B's most vocal critic, Norm Matloff, a University of California-Davis computer professor, writes in his H-1B/L-1/offshoring e-newsletter. He analogizes the H-1B law with loopholes in the law that allow many of the rich to not pay their fair share of taxes. "It's funny," he writes. "If I tell someone that big corporations and some wealthy individuals pay rather little in taxes, he won't say that the IRS isn't enforcing the law well enough. He will readily understand that the problem is the gaping loopholes in the tax code, rather than weak enforcement. It's the same with H-1B--i.e. the problem is loopholes, not enforcement--but no matter how often [programmer] Rob Sanchez and I repeat this simple fact in our respective e-newsletter, people just don't get it."


More Global CIO Insights

White Papers

More >>

Reports

More >>

Webcasts

More >>

Another critic, Roy Lawson, who's a board member of the Programmers Guild, an IT workers' advocacy group, challenges the way the Labor Department accounts for prevailing wages in its Labor Condition Application database. According to his analysis of the LCA database, 26 programmer analyst jobs approved by the Labor Department were for salaries averaging $20 million. "I don't know if this was fraud intended to screw up the averages, but none the less there are entries for programmer analysts averaging above $20 big ones," he wrote me last week. "There was one lucky programmer analyst bringing in $454,484,721. Unfortunately, it wasn't me. These 'Million Dollar' programmer analysts drive the average up by over $15,000--intentional or not this is misleading. I think the DoL should force those companies if they were actually approved to pay up. Then see who is laughing."

No one really believes that such humongous salaries exist, except in our dreams. But if Lawson's calculations are right, it suggests that the prevailing wage rates cited by Labor aren't accurate.

The controversy over H-1B is twofold. The first--and one that won't go away anytime soon--is over whether the visas are needed. Matloff, Lawson, and their allies contend that there are plenty of qualified unemployed and underemployed IT professionals who can fill unfilled tech jobs if employers paid prevailing wages. They see employers using the H-1B visa program as a way for employers to hire cheap labor. But many employers contend that a skilled labor shortage is real and that they must go overseas to recruit help because not enough qualified business technologists can be found in the United States.

It doesn't matter whether Matloff et al or tech worker-starved employers are right. The hullabaloo over paying prevailing wages can be resolved by Congress, which should change the law to give the Labor Department more power to determine, as well as teeth to enforce, prevailing wages. Somehow I doubt this Congress will act anytime soon.


Related Reading




Currently we allow the following HTML tags in comments:

Single tags

These tags can be used alone and don't need an ending tag.

<br> Defines a single line break

<hr> Defines a horizontal line

Matching tags

These require an ending tag - e.g. <i>italic text</i>

<a> Defines an anchor

<b> Defines bold text

<big> Defines big text

<blockquote> Defines a long quotation

<caption> Defines a table caption

<cite> Defines a citation

<code> Defines computer code text

<em> Defines emphasized text

<fieldset> Defines a border around elements in a form

<h1> This is heading 1

<h2> This is heading 2

<h3> This is heading 3

<h4> This is heading 4

<h5> This is heading 5

<h6> This is heading 6

<i> Defines italic text

<p> Defines a paragraph

<pre> Defines preformatted text

<q> Defines a short quotation

<samp> Defines sample computer code text

<small> Defines small text

<span> Defines a section in a document

<s> Defines strikethrough text

<strike> Defines strikethrough text

<strong> Defines strong text

<sub> Defines subscripted text

<sup> Defines superscripted text

<u> Defines underlined text

InformationWeek encourages readers to engage in spirited, healthy debate, including taking us to task. However, InformationWeek moderates all comments posted to our site, and reserves the right to modify or remove any content that it determines to be derogatory, offensive, inflammatory, vulgar, irrelevant/off-topic, racist or obvious marketing/SPAM. InformationWeek further reserves the right to disable the profile of any commenter participating in said activities.

Disqus Tips To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy.
T-Shirt Giveaway T-Shirt Giveaway: Each week we're selecting one great comment from our readers. The author of the comment will receive an InformaitonWeek Community t-shirt. So get posting!
Subscribe to RSS

Resource Links