We spent a ton of time and effort trying to find anyone to our standards, never able to find enough. H1B (and other work visas) were generally better and more Sr compared to locals we found. They got paid as much or more than everyone else.
When we had great people we could not get here we would instead build a team overseas, taking a bunch of other jobs with them.
I can't speak to your particular situation, but in my experience this has been two factors; one is location -- it is sometimes hard in some locations to find senior talent whereas H1Bs are (naturally) more amenable to moving. The other is pricing, which is echoing the GP's point. Senior talent is expensive and you can get it at (apparently) considerably lower cost by looking for H1B applicants.
Oh that's a really good way to handle it that would actually follow the intent of the program.
You can't find someone to do a job? Then you need to compete on wage with other companies to bring someone in. Or, you know, raise your salary for local employees.
A simple stack rank and cut has the problem of where to draw the line.
Also, how to value pre-ipo stock
There are other good options as well (an auction, etc). They all have problems, but there are mitigations. It could be vastly improved even if it’s not perfect.
Yeah, I'm generally pretty pro-immigration and I'm very anti-H1B.
It's very abusive to the workers hired as H1-B and it's designed for wage suppression. You can stay an H1-B for years. If you lose your job, you'll face deportation. It gives your employer a VERY large amount of leverage over your life.
It's supposed to be about bringing expertise when local expertise isn't available, but in practice it's companies saying "Oh, we can't find someone who will work for $50k as a software dev so we need to hire H1-Bs."
Either the program needs to end or the minimum salary needs to be raised to something like $300k to compensate for the leverage the employer has.
How do you determine the "correct" location of a job?
My employer sells software internationally - are you claiming any international job should be subject to some sort of fine simply because the company is HQed in the US?
I suppose we could try slicing revenue or profit by sales region and comparing against headcount expense per region? But with salaries abroad being a fraction of in the US, that math might still work out in favor of keeping international employees.
EDIT - I dislike the H1B system overall. Just not sure "fine companies that operate overseas" is something we should consider as a replacement.
We can tariff those out of country services if needed. They can be built and hosted in the US. An example of this today is SaaS taxes. Please provide a non US service as an example.
This is what laws are for. "You can just do things."
If you open an office in another country and hire people there, is that outsourcing? If so, would big tech have to close their "international" offices if they don't want to pay the 25% tax? I ask that because I'm seeing these offices opening a lot in the last 3 years
Also curious about loopholes, could said company start another company out of state that was the outsourcing entity and then the parent company paid that company. You're theoretically hiring from within the US, because I assume said policy doesn't go all the way to sub-contractors etc?
I don't know. Have to implement to find out and iterate. The number can go up until the preferred amount of offshoring has been drained from the system.
I'm a former H1B visa holder and I feel very conflicted. My experience was a great one: I was hired by a startup on an H1B, successfully transferred to a different startup, then eventually went to work for a bigger company that sponsored my green card. I wasn't underpaid by those startups and I know this $100k fee means a similar company will never hire someone like me again.
But over the years I got to know many people on H1Bs who were indentured servants to their employers: once their green card application was in they were stuck. And if you're from a country like India that can take a decade or more. The whole thing feels like a scam and the $100k fee isn't going to deter those companies from doing it, it's still well worth the money to them. I wish we saw sensible, well thought out reform here. Instead we get the Trump administration.
The H1B debate has a lot of factions, but one thing is clear: AI is going to be replacing some to a lot of entry level knowledge jobs. Even if it doesn't get any better than what we have now, it'll create a pipeline problem where senior engineers are more valuable than ever and we'll have to figure out how to make room for junior engineers so that eventually they can become senior engineers. Given that, it seems prudent to pump the brakes on H1B--which has become a way to get bodies for entry level work (while top talent has shifted to O visas and the like).
It's funny how quickly tech employees turn MAGA when it comes to qualified immigration. Bad zero-sum intuitions about work abound across all strata of society, it seems.
It won’t because universities, national labs and non profits are exempt from the fee.
Under the proposed rule, the additional fee would not apply to H-1B petitions that are not subject to the cap, such as petitions filed by certain nonprofit research organizations, governmental research organizations, and institutions of higher education.
https://www.uscis.gov/newsroom/news-releases/dhs-proposes-ad...
The H1B problem could be fixed overnight if the government handed them out by a simple test of ability rather than an idiotic lottery. Having world class researchers and engineers who command million dollar salaries enter the same line as a $60K worker at a slop factory like Infosys or TCS is beyond idiotic. And a high visa fee ultimately hurts more than it helps because it drives away both groups, and US tech needs the top talent from across the world to continue to remain dominant.
I worked at a company that depended heavily on one of the major 4 Indian suppliers. Their employees were treated like garbage. they would bring them here for months at a time. It was like indentured servitude. they lived in a bunk house and worked all day and slept and a bus picked them up and they worked. 6 days a week. If they fucked up, they were gone the next day. All for the chance to make it here.
Once we added a resource and had a sham hiring process in which the supplier supplied an expert with no less than 10 pages of experience in our niche project. To his credit, he did not lie to me, and told me he could try to figure it out but had not worked on the product, but that he needed to do well. We were forced to hire him
Later our team slated to replaced by that firm to maintain a major product while we went to green field stuff. I resigned and my team flew the coup over the next year or
Disgusting
we should have a tax or tariff on "W2" employees or firms outsourcing labor. Minimally a tax that helps pay for our social safety net. We depend on new employed young people and sending that work afar does not help us.
Almost like if the $100k fee is the sticking point, then maybe the talent being brought in isn’t world class talent we can’t find domestically so much as easily exploitable manpower that can be replaced with another H-1B if they start asking for reasonable treatment or higher wages.
Sorry IEEE, but offshoring happens regardless of the H-1B fee. I’m a pretty flexible dinosaur but you’re never going to get me to feel sympathy for employers leveraging a visa that’s tantamount to employment slavery in its onerous restrictions and lack of direct pathway to citizenship.
Everywhere else but the USA (and possibly Luxembourg), $90k will buy you a fantastic quality of life.
If you really want to make $90k seem as bad to the rest of us as it feels to you, you need to get the exchange rates changed, have USD devalued compared to other currencies until they're at purchasing power parity.
Of course, doing this would mean forcing yourselves to accept that China's got the biggest economy and the USA is only a little ahead of the EU, instead of thinking China and the EU are about the same as each other and significantly behind the USA.
On the whole, this is a good thing. There are policy responses that can be enacted as needed, in an easier and more humane way. The goal of the US government should be to protect the interests of the American citizen, as much as the goals of India or China should be to protect their own interests.
Not surprising, H1B for my entire career was a cost cutting measure.
Every time we had a layoff some portion would be replaced with H1B.
Every H1B that shared their salary with me has been underpaid.
I know its anecdotal but sharing to see if anyone has seen similar.
Not my experience in big tech and HFT.
We spent a ton of time and effort trying to find anyone to our standards, never able to find enough. H1B (and other work visas) were generally better and more Sr compared to locals we found. They got paid as much or more than everyone else.
When we had great people we could not get here we would instead build a team overseas, taking a bunch of other jobs with them.
I can't speak to your particular situation, but in my experience this has been two factors; one is location -- it is sometimes hard in some locations to find senior talent whereas H1Bs are (naturally) more amenable to moving. The other is pricing, which is echoing the GP's point. Senior talent is expensive and you can get it at (apparently) considerably lower cost by looking for H1B applicants.
This has definitely not been my experience.
H1B should have never been a lottery. It should be a stack rank by salary to deal with the over subscription.
[delayed]
Oh that's a really good way to handle it that would actually follow the intent of the program.
You can't find someone to do a job? Then you need to compete on wage with other companies to bring someone in. Or, you know, raise your salary for local employees.
A simple stack rank and cut has the problem of where to draw the line.
Also, how to value pre-ipo stock
There are other good options as well (an auction, etc). They all have problems, but there are mitigations. It could be vastly improved even if it’s not perfect.
It’s just the will to do it.
the salary weighted lottery today is a good step in the right direction IMO.
> Not surprising, H1B for my entire career was a cost cutting measure.
> Every H1B that shared their salary with me has been underpaid.
Yes.
Same experience. NYC location of a high street investment bank.
Been pretty much my exact experience
yep. I see the same thing. Trump isn't wrong to hike fees for H1-B. For companies that shift development overseas they should face tariffs as well.
Yeah, I'm generally pretty pro-immigration and I'm very anti-H1B.
It's very abusive to the workers hired as H1-B and it's designed for wage suppression. You can stay an H1-B for years. If you lose your job, you'll face deportation. It gives your employer a VERY large amount of leverage over your life.
It's supposed to be about bringing expertise when local expertise isn't available, but in practice it's companies saying "Oh, we can't find someone who will work for $50k as a software dev so we need to hire H1-Bs."
Either the program needs to end or the minimum salary needs to be raised to something like $300k to compensate for the leverage the employer has.
How do you determine the "correct" location of a job?
My employer sells software internationally - are you claiming any international job should be subject to some sort of fine simply because the company is HQed in the US?
I suppose we could try slicing revenue or profit by sales region and comparing against headcount expense per region? But with salaries abroad being a fraction of in the US, that math might still work out in favor of keeping international employees.
EDIT - I dislike the H1B system overall. Just not sure "fine companies that operate overseas" is something we should consider as a replacement.
Rest of us really ought to put tariffs on US software.
Not to bring in jobs or money (tariffs don't do that); just to push us away from your companies.
Call your congressional rep.
The HIRE Act: 25% tax on outsourcing - https://news.ycombinator.com/item?id=45161419 - September 2025
Ohio senator introduces 25% tax on companies that outsource jobs overseas - https://news.ycombinator.com/item?id=45146528 - September 2025
https://www.congress.gov/bill/119th-congress/senate-bill/297...
So you'd move companies overseas and buy services instead of outsourcing work.
It's really hard to do this in a way that won't be trivial to work around, and often in ways where you're likely to like the work around even less.
We can tariff those out of country services if needed. They can be built and hosted in the US. An example of this today is SaaS taxes. Please provide a non US service as an example.
This is what laws are for. "You can just do things."
If you open an office in another country and hire people there, is that outsourcing? If so, would big tech have to close their "international" offices if they don't want to pay the 25% tax? I ask that because I'm seeing these offices opening a lot in the last 3 years
is 25% enough to move the needle?
Also curious about loopholes, could said company start another company out of state that was the outsourcing entity and then the parent company paid that company. You're theoretically hiring from within the US, because I assume said policy doesn't go all the way to sub-contractors etc?
I don't know. Have to implement to find out and iterate. The number can go up until the preferred amount of offshoring has been drained from the system.
Wait? People do not know this? This war was lost a decade ago. Google employs more than 4,100 H-1B visa holders.
I think this will go hand in hand with tech compensation and jobs falling off a cliff. In the AI world too, we can't have our cake and eat it.
So it was never about the talent, but just about cost?
First time? meme here.
https://news.ycombinator.com/item?id=49540700 (citations)
(was always about cost, the US produces ~2M more college graduates per year than it needs, the system wants a labor surplus to contain labor costs)
https://news.ycombinator.com/item?id=49378010 (citations)
Seems like, if the $100k fee is too high a barrier to clear for talent they claim they cannot find domestically.
I'm a former H1B visa holder and I feel very conflicted. My experience was a great one: I was hired by a startup on an H1B, successfully transferred to a different startup, then eventually went to work for a bigger company that sponsored my green card. I wasn't underpaid by those startups and I know this $100k fee means a similar company will never hire someone like me again.
But over the years I got to know many people on H1Bs who were indentured servants to their employers: once their green card application was in they were stuck. And if you're from a country like India that can take a decade or more. The whole thing feels like a scam and the $100k fee isn't going to deter those companies from doing it, it's still well worth the money to them. I wish we saw sensible, well thought out reform here. Instead we get the Trump administration.
The H1B debate has a lot of factions, but one thing is clear: AI is going to be replacing some to a lot of entry level knowledge jobs. Even if it doesn't get any better than what we have now, it'll create a pipeline problem where senior engineers are more valuable than ever and we'll have to figure out how to make room for junior engineers so that eventually they can become senior engineers. Given that, it seems prudent to pump the brakes on H1B--which has become a way to get bodies for entry level work (while top talent has shifted to O visas and the like).
It's funny how quickly tech employees turn MAGA when it comes to qualified immigration. Bad zero-sum intuitions about work abound across all strata of society, it seems.
If you believe that the market sets prices via supply and demand in general, do you believe this is true for the labor market as well? If not, why?
It is pretty interesting to watch. "I'm pro immigration EXCEPT specifically the kind that directly affects me"
I'm seeing a lot of "offshoring" and go to Canada at the moment in my co.
Wow. This will affect universities and negatively impact the US in the coming years.
How many of the talent from frontier labs is immigrant?
[delayed]
It won’t because universities, national labs and non profits are exempt from the fee.
Under the proposed rule, the additional fee would not apply to H-1B petitions that are not subject to the cap, such as petitions filed by certain nonprofit research organizations, governmental research organizations, and institutions of higher education. https://www.uscis.gov/newsroom/news-releases/dhs-proposes-ad...
I think its more of equal counter force
as other commenter pointing out, those visas is for high skill job that lacks candidate on US soil
but company uses that for hiring Immigrant so they can underpaid them effectively reduce US born origin competitiveness
India has become super popular for US VCs. Why not invest domestically? Cost and control I guess.
The H1B problem could be fixed overnight if the government handed them out by a simple test of ability rather than an idiotic lottery. Having world class researchers and engineers who command million dollar salaries enter the same line as a $60K worker at a slop factory like Infosys or TCS is beyond idiotic. And a high visa fee ultimately hurts more than it helps because it drives away both groups, and US tech needs the top talent from across the world to continue to remain dominant.
The government can’t measure ability
but no, you can't work remotely
I worked at a company that depended heavily on one of the major 4 Indian suppliers. Their employees were treated like garbage. they would bring them here for months at a time. It was like indentured servitude. they lived in a bunk house and worked all day and slept and a bus picked them up and they worked. 6 days a week. If they fucked up, they were gone the next day. All for the chance to make it here.
Once we added a resource and had a sham hiring process in which the supplier supplied an expert with no less than 10 pages of experience in our niche project. To his credit, he did not lie to me, and told me he could try to figure it out but had not worked on the product, but that he needed to do well. We were forced to hire him
Later our team slated to replaced by that firm to maintain a major product while we went to green field stuff. I resigned and my team flew the coup over the next year or
Disgusting
we should have a tax or tariff on "W2" employees or firms outsourcing labor. Minimally a tax that helps pay for our social safety net. We depend on new employed young people and sending that work afar does not help us.
Almost like if the $100k fee is the sticking point, then maybe the talent being brought in isn’t world class talent we can’t find domestically so much as easily exploitable manpower that can be replaced with another H-1B if they start asking for reasonable treatment or higher wages.
Sorry IEEE, but offshoring happens regardless of the H-1B fee. I’m a pretty flexible dinosaur but you’re never going to get me to feel sympathy for employers leveraging a visa that’s tantamount to employment slavery in its onerous restrictions and lack of direct pathway to citizenship.
I'd be happier if H1B's (read: employment slavery) was completely redone and not tied to a single sponsor company, or gotten rid of completely.
I know so many IT folks who are unemployed. And compounding that is unmitigated slop machines for both generating resumes and filtering them.
Its fraud all the way down every where I look.
Yep. Taking advantage of desperate people from developing countries who think a $90k salary is something extravagant.
Everywhere else but the USA (and possibly Luxembourg), $90k will buy you a fantastic quality of life.
If you really want to make $90k seem as bad to the rest of us as it feels to you, you need to get the exchange rates changed, have USD devalued compared to other currencies until they're at purchasing power parity.
Of course, doing this would mean forcing yourselves to accept that China's got the biggest economy and the USA is only a little ahead of the EU, instead of thinking China and the EU are about the same as each other and significantly behind the USA.
> who think a $90k salary is something extravagant
I guess Europe is then part of these "developing countries"
The USA is the capitalist economy. The businesses do get protection and advantages.
On the whole, this is a good thing. There are policy responses that can be enacted as needed, in an easier and more humane way. The goal of the US government should be to protect the interests of the American citizen, as much as the goals of India or China should be to protect their own interests.