Archive · 28 Jun 2025
H-1B Visa Loopholes Allow Exploitation by Staffing Companies
The H-1B visa program, designed to bring skilled workers to the US, is being manipulated by companies that act as middlemen.
These companies, such as staffing firms, bring in foreign workers but pay them less than directly hired employees, even though they do the same jobs.
They also exploit the lottery system, which chooses who gets a visa.
The firms submit multiple applications for the same workers to increase their chances of winning the lottery.
This practice undercuts US workers and creates unfair labor practices.
Changes are being made to make the visa process fairer and reduce cheating.
Staffing firms and outsourcing companies, called "visa middlemen", exploit H-1B visa system.
Citigroup added 3,000 H-1B workers, mainly IT contractors, surpassing tech giants.
Middlemen pay H-1B workers less than directly hired counterparts.
Visa middlemen manipulate the lottery for advantage, submitting multiple registrations.
New beneficiary-centric selection process aims to reduce gaming and ensure equal chances.
- Who
- Visa middlemen (staffing firms and outsourcers), companies like Citigroup and Capital One, and H-1B visa holders.
- What
- Exploitation of the H-1B visa program by "visa middlemen".
- When
- From May 2020 to May 2024, with current changes in 2026.
- Where
- United States
- Why
- To exploit loopholes in the H-1B visa program, gain advantages in the lottery, and pay workers less than directly hired employees.
Advantage for Outsourcing
Potential Risk
Employment cost
Advantage for Outsourcing
Staffing firms are able to obtain foreign workers with lower pay.
Potential Risk
US workers may be replaced with foreign workers who are paid less.
- H-1B Purpose
- Attract top talent and dominate US tech industry
- Visa Middlemen
- Staffing and outsourcing companies
- Citigroup H-1B increase
- 3,000 workers (May 2020-May 2024)
- Capital One H-1B contract workers
- Over half had multiple registrations
- New Selection Process
- Beneficiary-centric, aiming to reduce gaming