REP. BANKS INTRODUCES BILL TO HOLD BIG TECH ACCOUNTABLE FOR EXPLOITATION OF U.S. IMMIGRATION SYSTEM

Statement

Republican Study Committee Chairman Jim Banks (IN-03) introduced legislation called the American Tech Workforce Act today that would stop Big Tech's exploitation of the United States' immigration system to disadvantage American workers and drive down wages. The bill is part of a Republican Study Committee initiative to hold Big Tech accountable.

Banks said: "Big Tech is setting aside some of the most lucrative and valuable career opportunities in America and giving them exclusively to foreign guest workers. They're cutting out Americans to save a few bucks. It's domestic outsourcing. This shocking disregard for American workers and their role in our nation's future is unpatriotic. We must fix Big Tech's incentives, so they begin putting Americans first."

Background:

In 2019, Amazon, Google, Microsoft, Facebook, IBM and Apple were 6 of the top 8 initial approval recipients of H-1B visas. This group has been in the top of the approved recipients pool since at least 2014. These companies are interested in workers with H-1B visas because they can pay them less--60% of H-1B visa positions are assigned wage levels well below local median wages. Not only do American workers lose out on jobs given to these visa holders, they have to be willing to be given lower wages as well.

The American Tech Workforce Act is designed to create a new incentive structure to increase wages and favor the hiring of Americans. The bill does three things:

Creates a wage floor for H-1B visas set at the higher of the annual wage last paid to an American worker who filled the position or $110,000 (adjusted for inflation).
Creates a true marketplace where eligible visa applications are awarded based on the highest bidder.
Eliminates the Optional Practical Training program that allows certain foreigners that came to the U.S. under a student visa and have graduated to work in the U.S. for up to three years if they have a STEM degree and allows their employers to avoid paying payroll taxes on the visa-holder's wages.
Limits the ability of Big Tech firms to contract with third-party companies to fill spots with H-1B recipients sponsored by the third-party company by limiting the maximum validity period of the visas to 1 year.

Source