Why Companies don’t prefer H1B employees
In today’s market its hard to find Companies hiring H1B on fulltime .Most of the H1B hiring is from Consulting companies for contract positions mainly big and small body shop companies.
Companies sometimes decide against sponsoring employees for an H1B visa for the following reasons:
1.High Legal cost involved and Filing Fees for H1B – As per US law employers are required to pay for the H1B filing fees and legal fees associated with the application and procedures. This amounts approx to 2000+$. Hiring a EAD candidate else a GC or Citizen will cause instant savings to the company.
- High Wages due to Prevailing Wage requirement – H1B Hiring employers are required to pay the H1B employee at least the prevailing wage as per the current law. The prevailing wage is often higher than what they might be able to pay a local US worker.
- Compliance requirement and Exposure to Audits – H1B employers have to comply with additional H1B laws and regulations. they must maintain a public database file and also subject to surprise audit by DHS . If they terminate the H1B employee, they must offer a return ticket back home. Hence companies need to spend more money and time when hiring a H1B employee.
- Green card sponsorship and H1B time limit – H1B visas are valid for 3 years initially with an additional extension of 3 years. The employees usually asks for green card sponsorship, which is expensive and also a extra burden to the company.
- H1B visas are not flexible:There is a quota of 65000 for general and 20000 for MS graduates for each fiscal year on the number of H1B visa that can be issued , and they cannot start work until October 1 of that Fiscal year. The other key issue companies face with H1B is if the employees work location needs to be changes else if their position or job duty changes an H1B amendment is needed which is an extra cost and burden for the company.