A senior manager at an international company told me about a change in
H-1B going on.
He knew other US based international companies doing the same as his
At one time they would H-1B sponsor. They have stopped new sponsorships
because of the level of productivity received for the dollar cost and
public relations cost.
They have also cut down almost to the point of totally eliminating H-1Bs
acceptance from rent-a-body agencies.
For agencies their contract terms now requires that the agency their
contract is with does the payroll or A/P activities with payment on a
cycle (e.g. bi-weekly 3 days after period end) or pay the worker within
48 hours of receiving payment. I say it is impossible to prevent a
primary agency from paying a second agency for recruiting a worker for
them. Their reason for preventing a secondary agency from doing the
payroll is the number that pay like 30 days after they get paid and then
the secondary agency can not be found when it time for payment or they
claim that they haven't been paid. A number of legal decisions handed
down have held that the company (the master) contracting for a worker is
liable to pay the worker (the servant) should the agency not pay.
Another problem is that laws passed in the 1930s and still on the books
in most states say how much an agency can deduct for their overhead and
profit from the payment made by the master when paying the servant.
Example percentages are 10 percent is Nebraska, 15 percent in Louisiana
and 20 percent in Texas. If the company is paying the agency $100/hour
for the labor of the worker, the minimum the agency can pay the worker
is $80/hour in a state with 20 percent. Most states do not today enforce
these laws from the 1930's doe any number of reason. New Jersey appears
that is has taken the law off its books.
The 1930's laws were written with in mind a permanent employment agency
that supplies a candidate to a client on a temporary basis and states
ignore the law rather than having its legislature update the wording
(which between the lines says many times agency paid lobbyists get to
the legislature to preventing a refresh of the law). .
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