As the debate over the H-1B visa program intensifies, U.S. employers are exploring alternatives to navigate administrative hurdles and secure talent, increasingly hiring remote workers abroad, Newsweek reported.
The H-1B visa program, a cornerstone of U.S. skilled-worker immigration policy, is facing renewed scrutiny as employers grapple with its costs, uncertainties, and regulatory complexities. While designed to address gaps in domestic talent by allowing foreign professionals to work in the United States, the program's limitations have prompted many businesses to seek alternatives, including hiring remote employees based overseas.
Kathleen Campbell Walker, chair of the immigration practice group at Dickinson Wright, described the program as a last resort for many employers.
"I only go into H-1B when I have no choice," Walker told Newsweek. "Because it's costly, it's uncertain as far as the lottery, and it is the most highly regulated option that I have to present to an employer to choose from,"
These challenges have spurred a growing trend: U.S. companies, particularly small and medium-sized businesses (SMBs), increasingly hire international talent to work remotely. A 2024 survey by Envoy Global revealed that 83% of employers hired at least one foreign-based employee for roles initially intended to be U.S.-based.
The H-1B visa program has a yearly cap of 85,000 new visas but regularly sees demand far exceed supply. The American Immigration Council reported that in 2023, more than 750,000 individuals were approved for H-1B visas, reflecting both capped and exempt categories. However, critics argue that the lottery-based approval process lacks transparency and fails to align with labor market demands.
The program's most frequent beneficiaries are major tech, finance, and consulting corporations, including Amazon, Google, Meta, and IBM. Labor advocates contend that H-1B visas are sometimes used to suppress wages and undercut domestic workers, while smaller businesses often cannot afford the financial and administrative burden of participating in the program.
"For smaller companies, typically, it's not worth their time or effort to go through all of the paperwork, all of the process, to try to obtain one of these visas," said Sahar Akhtar, a professor at Georgetown University.
The COVID-19 pandemic and the rise of remote work have made international hiring more accessible for SMBs. A January 2024 study by HR platform Gusto found that 60% of small business leaders struggled to find domestic talent and turned to hiring abroad. Among those who did, 75% planned to continue international hiring.
Hiring international contractors or freelancers has also become a popular strategy. This allows businesses to mitigate compliance risks while retaining critical skills and intellectual property.
The business community has long advocated for changes to the H-1B program.
Companies argue that visa caps and labor market misalignment hinder their ability to compete globally. Labor advocates and researchers from organizations like the Economic Policy Institute (EPI) caution against reforms that would loosen requirements and warn of potential worker exploitation.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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