Neufeld Memo: What You Need to Know About Impact on H1B Workers

The USCIS recently released a new H-1B memo called the “Neufeld Memo“. It takes aim at mainly Indian H-1B IT workers at third-party client job sites.

The Neufeld Memo insists that there must be an employer-employee (H-1B) relationship at all times throughout the requested period of H-1B employment.

On one fateful day, January 11, 2010, when Continental Airlines Flight 49 landed in Newark from Mumbai, India, we know that CBP officer Matt McGirr and his colleagues, hunted through the lines for Indian H-1B workers even before they showed up for primary inspection. Their minds were made up. No detailed questions were asked. The moment they found Indian H-1B workers who uttered that they were working at a client site in the IT field, their fates were sealed. They were subjected to expedited removal orders and sent back to India.

Employer-Employee Relation

The USCIS uses the following guidelines to determine Employer-Employee relationship:

  1. Does the petitioner supervise the beneficiary and is such supervision off-site or on-site?
  2. If the supervision is off-site, how does the petitioner maintain such supervision, i.e., through weekly calls, reporting back to the main office routinely, or site visits by the petitioner?
  3. Does the petitioner have the right to control the work of the beneficiary on a day-to-day basis if such control is required?
  4. Does the petitioner provide the tools or instrumentalities needed for the beneficiary to perform the duties of employment?
  5. Does the petitioner hire, pay, and have the ability to fire the beneficiary?
  6. Does the petitioner evaluate the work-product of the beneficiary, i.e. progress/performance reviews?
  7. Does the petitioner claim the beneficiary for tax purposes?
  8. Does the petitioner provide the beneficiary any employee benefits?
  9. Does the beneficiary use proprietary information of the petitioner in order to perform the duties of employment?
  10. Does the beneficiary produce an end-product that is directly linked to the petitioner’s line of business?
  11. Does the petitioner have the ability to control the manner and means in which the work product of the beneficiary is accomplished?

If H-1B employees are working through a consulting company as contractors, they are mainly the most affected. They are the ones who will be affected because of this new memo.

During the H-1B 2010 season, it was hard to find consulting companies who would apply for H-1B visa because they were receiving RFEs during that period. But this time, this memo is targeting current H-1B visa holders working as contractors.

Impact of Neufeld Memo on H1B Workers

The Neufeld H-1B Memo, which was released on Jan 8, 2010, is creating lot of buzz among H-1B Visa sponsoring consulting companies.

New conditions set forth by the memo will make it impossible for consulting companies to sponsor H-1B visas.

So, what is the impact of the New H-1B Memo, regarding Employer-Employee relationship to folks who are planning to apply for an H-1B visa?

Neufeld memo impact

  1. Already, a few workers were sent back home.
  2. It will be hard for the consulting companies to show good employer-employee relationship.
  3. Finding direct projects is close to impossible for small firms, if they place the employee through layered client projects.
  4. The New Memo will affect existing H-1B worker’s extension and renewal. So they most likely they will not apply for new H-1B visas (e.g., H-4 to H-1, L-1 to H-1, L-2 to H-1, and so on).
  5. They will prefer to employ F-1 visa students in OPT (29 months) so they can place them without they need for H-1B visas. (But will they sponsor H-1B visa petitions later?)
  6. Possibly hire citizens of Canada and Mexico (via TN Visa).

Even after reading the new memo, a few readers began asking for a list of consulting companies that would sponsor H-1B visa petitions.

It would be better that you stop looking for H-1B visa-sponsoring consulting companies. Instead, consider investing time and money to get a degree from U.S. colleges or universities.

What would you do? Will you still try to apply for an H-1B visa? Please share us your thoughts.

Update: September 2015

Consulting Companies have figured out the way to overcome the Neufeld Memo requirements. But, its impact is still widely felt by employers even today.

73 Comments

  1. Joe Cur on March 10, 2010 at 10:36 AM

    This is just the second shot of the opening salvo. There will be more. I have worked these last ten years cleaning up the messes that the H-1B's make. The Government here is starting to realize that the best and the brightest do not come from the third world. Logic dictates that new innovations do not come from a countries home populace that has just recently been introduced to indoor plumbing. We walked on the moon over forty years ago. You come here as Scab labor working for half or less the wage. fortunately you also screw almost everything you touch. They have tried for many years to get innovations from you and have only received non working programs and devices. The marketing people only see the bottom line. They do not understand that there is a difference between good engineering and bad engineering. They see a degree and figure this person is an engineer. Those of us that have tried to acclimate you to innovation know different. Some companies have paid by going out of business. Others are back tracking trying to figure a way to save their company from the mistake of hiring substandard foreign workers. For those of you who sya that we cannot compete please read up on what happens to scab labor when they are removed. It is not pretty. Americans have been dealing with labor disputes for well over 100 years. Corp[orations have done this in the past and have paid dearly. In the end they always hand the scabs (technical term for cheap labor used in wage disputes) over to the repatriated American workers as a blood sacrifice as it were. Do you really think it will be different now.

    Do you really think that you or us or anyone can compete with less then a dollar an hour wage like what is paid in China. Do you really think that you who just recently learned what the use of toilet paper was for can compete with real American innovators. By the time we get to the fifth or sixth stage of clearing this mess up you will be begging to go home and the few companies left standing will fight for the best American workers that are still out there. Get real swami. You cannot compete with real American engineers. We invented the phone, the car, the everything you use that uses electricity. What have you ever invented. Like I aid, read up on American history to see how this ends for you. It won't be pretty.



    • Asian American on March 28, 2010 at 11:18 AM

      Do not generalize and vent your fumes on soft targets like H1Bs. While we are targeting H1B holders – more and more companies are off shoring projects. Recruitment in IT services segment is going at full speed in lot of Asian countries… especially India, China and Philippines. It’s good that these returning H1bs would be good local resource pool.

      Get prepared for the global competition or keep complaining un-American way.



    • NJ on April 7, 2010 at 8:02 AM

      Joe Cur you sound more like a sore loser! Why do you think tech giants hire Asians, we work harder and are more responsible than lazy locals. Have you seen Microsoft, IBM, Intel, Oracle or Google go down ? No Joe if anything they post profits higher every quarter. This is where most Asians work. Talking about innovation we taught you dummies how to count we gave you the number system. We gave Hotmail, one of the roots for all free email services. Better know your facts before you talk. We were using Calculus even before Einstein. The USB was invented by an Indian, you remember the thingy that you use to plug into your computer to transfer data from your tech gadgets.

      Any product would sell only if there is demand and there is not enough supply, that is where we come in. Its true that there has been some abuse of the H1B program but not all of it. America is short on Engineers. But right now the projections are that the current immigrants and their kids would suffice this need for more engineers. Anyway our countries have a greater growth rate than yours.

      Bottom line: We are better than you. The truth is always bitter.



      • Joe Cur on April 9, 2010 at 6:34 AM

        You want truth here is some truth for you. The British tried to drag you into the twentieth century and failed. You did not invent calculas the Creeks did. You invented the sex. You must have as there are so many of you. Walk down any modern street in India and you will happen up[on a dead body just laying there. they come and night and pick them up. You did not invent the USB we did. I worked on that project in Chandler AZ in 1995. I was awarded a solid silver cup for my work on that project. That Indian guy was in the Bay area and was the project staffing manager. he was nearly fired for sending the layout to Malaysia. It came back all messed up and we worked 18 hour shifts fixing it. You guys break everything you touch. If you do on the rare occasion innovate something it is done here under our supervision. Not in India. For Gods sake man you people still use your finger to wipe your butts even when we provide you with toilet paper. But even with the starvation wages we pay you in India you can still not do a simple job like answer the phone. So now we are shipping the work to the Philippians. As for the people that we have coming here the best and the brightest. I was told one time by my boss to acclimate one of you and I told him after that experience never to ask me to do that again. I mean to take you to a grocery store and show you what deodorant is used for. What toilet paper is used for. and to walk by the meat counter and watch you faint dead away because you have never sen meat before. To explain that you have to bath every day. And then on the job we have to explain the simplest most basic principles of circuit design. High school stuff. But the top brass wants to save money so we do what we can to get you up to speed. What it more often turns out to be is us putting you in the corner with some fake work to keep you out of our hair while we work twice as hard because now we have lost our knowledgeable colleges. If you are so great then why don't you go home. You invented technology. get real man wake up. you are living in a dream world. American corporations wants slaves. plain and simple. They get manufacturing workers in china for between 4 cents and up to 89 cents an hour for the ones who have masters degrees. Their engineers like you can remember formula. But, that is not engineering. If you could solve problems then you'd have indoor plumbing instead of coming here and getting all wild eyed when you walk into a bathroom. You will never catch up to the modern world. The medicine you practice is what was developed in the west. Or are you going to say that you invented SEM's and CAT scanner, and MRI's and the microchip. And whatever else there is in the modern world. Now, go and pray to whatever multi-headed elephant God you want for salvation. And, like always we have to explain everything twice to you and yet you still don't get it. When the corporations are done with you they will make sure that you are returned to the slums they found you in. Once again go read up on American labor disputes and see what happens top the scabs. This has been going on here for a very long time. The 40 hour work week, the paid time off, the health insurance everything working benefit that you enjoy in this country was paid for in blood by the miners like the ones who just recently perished. Read up on what they did to the scabs once the strikes and such were done. When the back lash truly starts you won't have time to leave the country. You will find yourself in the belly of the beast. You are a fool. You live the life of a fool and you will like all fools die a fools death. probably trying to cross the street. Or maybe by sticking your head in a microwave oven to see how it works while it's running. Will you just go back to that rat infested S*%hole your came from and we will send you some GM rice.



        • Ashok on May 18, 2010 at 6:24 PM

          Its too funny to read… and not interested to go thr all blogs.. Person who wrotes above blog is wasting time in blaming others.. if this person might have used this time in some good things that might have helped economy..

          Try to survive in competition not by blaming others and putting rules.. Be brave and taleneted like we people..

          No need to give or blame with such a long explanation.. We just Proove it.



        • Abdullah on June 9, 2010 at 10:02 AM

          Joe Cur you're such a sissy!! No kidding ! You really are! Hit me back, haha!



      • Ian on June 10, 2010 at 8:19 AM

        A population of millions such as India it’s bound to have some bright minds. Joe is not claiming there are no good engineers in India.
        But the generalization needs to be made, and the generalization is that most indians that apply for this visas are not brighter than the average american student. They are just willing to work for less that’s all.
        “We were using Calculus even before Einstein”
        With this statement I have to include you in the pool of indians bellow the average. What does calculus have to do specifically with Einstein?
        Modern calculus, was invented by Archimedes in ancient Greece. Calculus as lectured in today’s universities, is surprisingly not much different from Archimedes notes. After Archimedes a lot of great scientists and mathematicians used calculus long before Einstein.
        Have you ever heard of Galileo, Newton, Fermat, Euler, Fourier, Langrage, Riemann. The list goes on.



        • Abdullah on June 10, 2010 at 1:42 PM

          Oh well with 'We were using Calculus even before Einstein' the guy didn't mean WE INVENTED THE CALCULUS, duh!

          What ever numbers you see around you today used in Math, Astrological/Meta/Regular Physics and Chemistry was gifted to the world by Indians.

          And JOE CUR really DID claim there are no good engineers from India. It is just sad for him to be working for us/about us/against us/ us.

          As far as working for a lower wage works out, well even an average/below average american would be willing today to work below the average wage just because having a JOB is the need of the hour.

          Whatever anybody says, during the times we are faced with today, it surely is survival of the fittest. It you're an american/african/canadian/european/asian and are not working, it is partly because you're not employable enough or in other words, fit enough to be employed.

          I would like to end my critique by praying for all of us that we get out of this tough period with very little regrets and hopefully everything will end for each and every one of us well. It is just the time which is making us slur against each other. We were comfortably working alongside each other, otherwise, a few years ago. Disparaging sometimes helps you grow, I feel so I'm cool about it and besides, I like Comment Wars 😛 !



  2. Andrie Tanusetiawan on February 11, 2010 at 4:49 PM

    I am praying for everyone.

    Jesus bless you all,
    Andrie Tanusetiawan



  3. Those Who Complain on February 5, 2010 at 3:57 PM

    Those who complain about the USCIS enforcement of current USA laws have something to hide. You break the law, you face the consequences. Sorry I didn't get any break when H-1B stole my job. Now H-1B wannabes get to experience US corporate greed first hand. Doesn't feel good, does it.. Maybe you will be more empathetic to the people you replaced.

    Despite popular H-1B belief, you, exclusively, are not the masters of the universe. Thanks to corporate greed and political corruption,the people you replaced, hardworking, qualified and educated Americans have lost our jobs, homes, life savings, and healthcare as a direct result of the corrupt H-1B temporary work visa program.

    Think again if you think you can get away with one of the H-1B visas that bend the rules.I suspect lots of laid off US workers like me are only too happy to help the USCIS enforce the law.



    • Dhaval on February 15, 2010 at 11:33 AM

      Do you think USCIS was naive about this all this time. Well I don't think so. If there had not been recession, USCIS would have kept going on granting visas.
      What is more important ? H1b stealing jobs or illegal immigration??

      Secondly blame companies who don't want to pay more if they get chea labor



  4. arun on February 1, 2010 at 8:31 PM

    Is the new Memo for New H1B applicants or existing H1B holders?



    • IndianInUS on February 13, 2010 at 11:46 AM

      my attorney told, these rules are there for ages…



      • Amol on February 13, 2010 at 2:27 PM

        @IndianInUS

        what does your attorney has got to say about the implementation of these rules now. My friends who are on OPT say that their consultants won't be filing H1B.Sp they are stuck.Some people say that those who have projects are fine and consultants can file H1B for them.Can you shed more light on this.

        Thanks

        Amol



        • IndianInUS on February 13, 2010 at 4:37 PM

          When ever one applies H1 transfer/H1 extension with client contract letter, they are fine… This is also not a new rule as well



  5. Amol on January 27, 2010 at 7:54 AM

    Increase the H1B quota for students with higher degrees from US universities and make it easy for them to go for permanent residency.Regulate the quota meant for candidates applying for H1B from outside US.Allow onsite work from companies from outside US only on L1 visa as these are short term contracts.

    This would work in stopping the exploitative job shops in US and put check on companies sending candidates from outside US.



    • desixml on February 6, 2010 at 5:36 PM

      Thanks Anmol. I share your views, to save our jobs we have to do it @ the expense of foreign H1bs outside USA. Good thoughts Anmol.



    • SAM on February 13, 2010 at 10:36 AM

      Hi,

      What difference does it make if there is a higher degree from the US(MS/PH.D). All the desis inspite of having/not having a higher degree from the US put 7-8 yrs of fake IT industry experience on their resumes.



      • Amol on February 13, 2010 at 3:17 PM

        Hi Sam,

        It does make difference. You are just looking at the resume aspect of the problem.The mess is too deep. At present there is an enormous queue of people wating for permanent residency, H1B.If that was not enough the US govt created one more mess by making OPT 29 months.Due to IT other fields have shrunk.No doubt there are more jobs in IT but not everyone wants to do Computer Science or enter into Software side.

        So people from other fields if they don't find openings due to shortage of jobs or due to visa restrictions enter into IT.Thus creating excess pool. Instead if students with higher degrees are kept separate and channeled in away that they don't have to see the faces of small consulting companies lot of heartburn would be saved and H1B rules would be honored.

        As far as people who come on projects they already have jobs with their companies so no one should be bothered about them.Its the student who is getting raw treatment.There are many students who hope to enter work force but cannot because of such rules.



  6. Zack on January 27, 2010 at 2:30 AM

    The memo should be implemented in full. The IT consulting business by firms with less than 50 employees or less is PURE exploitation. It is a middleman sucking profits with no value added to the employee. Many 'enterprising' individuals have set up shop and sponsoring H1B visas, charge Deloitte, EDS, CSC (who have the primary vendor position and have government contracts). What is more pathetic is many of these firms (particularly HP-EDS via Mphasis India, CSC via Covansys), are bringing employees on L1 visas and they work on government contracts (of course safely in their own office following all rules).

    These PVs charge government agencies $80 to $90 per hour, the middle-men body shops and pay poor salaries and benefits. Action under this memo will put an end to this. I say good citizens of this country are growing a spine and good for them.

    What will happen is the PVs must start hiring US Nationals from the unemployment pool and pay them decent salaries and benefits.

    Each of the posters here must avoid propagating their own interests and see the larger benefit. Elimination of evil practices by pimp-like firms.



    • IndianInUS on January 27, 2010 at 6:59 AM

      I am ex-Wiproite and transferred my H1 after a year of work in US in 2006. You should remember that everyone joining consulting firms, cos they want to settle here and go for green card. If these companies – Wipro/Infy/TCS/CTS started sponsering green cards, percentage of candidates seeking consulting firms will be less. So, US don't want long term tax from folks like us?

      Indians workers here in H1s, L1s are paying SSN tax, when they are not sure where they are going to settle and still there is no pact between India-US to transfer SSN benefits to people who wants to settle in India. 65K new H1s coming every year and 20K students graduating here. Calculate just SSN taxes paid by these candidates.



      • Anonymous on February 10, 2010 at 12:59 PM

        If you don't want to pay SSN, you can go back to India. No one has forced you to come to US. You made a choice.



        • IndianInUS on February 13, 2010 at 4:46 PM

          I am NOT telling against SSN tax. But the fact is every Indian professionals are paying SSN tax here, with no returns in future. So, its all blind profit for US as of now.

          When US and India will have agreement like other countries to give Social Security benefits, if an Indian plan to retire in India after working in US?

          Also, when USCIS will implement the rights to work for 100000s of Indian spouses (IT professionals, doctors etc) wasting their talents and career in H4 visas sitting in home? It makes sense to issue work permit for such H4s who are already here, instead of bringing a new H1 from other country. Not sure where to raise these issues.



          • Dhaval on February 15, 2010 at 11:39 AM

            Dear anonymous,

            as H1b we pay taxes social sec federal , we can not even claim unemployment, so all money goes into ur treasury . I don't mind that coz US gave me lots of opportunities and I am grateful for that.

            How about your southern neighbor, u know who , who come here illegally , don't pay taxes and don't do nothing about anything…



  7. Mike Greg on January 25, 2010 at 1:41 PM

    The changes are for protecting US jobs as many IT companies are misusing them. They should have been implemented long time back.

    The body shoppers WIPRO, SATYAM MAHINDRA, TCS, INFOSYS should all be in line next after the small body shoppers are stopped. These big companies grew overnight by outsourcing US Jobs. They do not create new jobs but just OUTSOURCE.



    • Vamsi on January 26, 2010 at 6:43 AM

      I strongly disagree.These companies didnt grow overnight.OutSourcing is a model implemented to get the job done quickly and with less investment.So do not blame these companies.US is not the only country outsourcing the jobs,but its the biggest outsourcing country for sure.Companies like WIPRO, SATYAM MAHINDRA, TCS, INFOSYS are there to do the job when demand rises and how they want it.

      Vamsi



    • IndianInUS on January 27, 2010 at 6:48 AM

      If you are an employer say Target/Best Buy etc, who will hire you to get the same work done? One who expects $70/hour and work in MN or $30/hour and work from India? You should remember that outsourcing increases US firm's profit and thats mutual benefit (win-win) situation for US nd Indian companies.



      • Guest on January 27, 2010 at 7:17 PM

        Well thats a win-win for the US-Indian companies but the Americans are the ones losing here, with no jobs and money coming, this consumer centric economy will be in shambles in some more time if nothing is done to stop it.



        • IndianInUS on January 27, 2010 at 7:56 PM

          If so, why US based companies hiring foreign talents and govt legally allowing 65K H1s each year and adding 20K more from colleges, if local talent is good…. See every technology companies MS/Google/Yahoo/Sun, Asians are more in number, because of talent. You will get job as per your talent anywhere…..



          • Matt from Texas on January 29, 2010 at 8:59 AM

            You are so naive. Companies love H-1B as a source of cheap, compliant labor. They get it by purchasing the votes and influence of government officials through campaign contributions and gifts. Officials have gotten away with it because the primary individuals impacted, US STEM workers, don't have an effective political voice.

            Asians are not more talented, but they are willing to work cheaper under worse conditions because they hope to get that green card or make enough money to live like kings back home.



          • Indian on January 31, 2010 at 7:37 PM

            Indians are just like others. Remember, only educated indians coming to US. However, dont say that they are taking US citizen's Job. Why dont US citizens work for a lower salary?(it is not the lowest salary anyway). It is survival of fittest. Who ever talented will survive.



  8. Vamsi on January 25, 2010 at 12:11 PM

    No sense is passing a rule like this where the consultant/Employee is affected badly.USCIS changes their views and rules on a need to need basis which should be struck down by the court of law.We as immigriants to US and we have every right to fight this rule and also need to support the need to revoke this rule.

    Even a criminal gets a chance to please in the court as not guilty,but we dont get a chance beyond the immigration counters.We continue to contribute so much tax dollars and all of that shouldnt go in Vain.People have lives and Families and they can never build or continue the future invested here in US.

    I agree that the rule will make sense for new H1's or extensions but i dont not agree that it should be passed on people randomly.USCIS should force such a rule on the Employer and not go against H1 Employees.

    This Rule should be taken by employers to implement new standards of practicing consulting and not try to find loop holes in the system.Obviously we should have seen this coming which is ripple effect of all the employers exploiting the Consulting business.

    vamsi
    Status:EAD



  9. GD on January 25, 2010 at 9:51 AM

    Was this a one-off incident or has this become a practice? Particularly, at these airports? I am flying to India and have the same flight and port of entry on return in March. Unnecessary headache all this 🙁



    • Abhay on January 25, 2010 at 11:33 AM

      I think some such isolated incidents do take place…mostly in NY,NJ port of entry. Because of all this crap, I have decided to work for a couple of years on F1 and then leave US. It has become so hard to work here.



  10. Victor Black on January 24, 2010 at 5:39 PM

    This is good. Finally, its happening. Hopefully, this curtails aliens taking local jobs.

    PS – Please do NOT refer to the Indian body-shopping companies (Wipro, Infosys, Mindtree, etc) as consulting companies. They have no consulting experience whatsoever. Body-shops makes sense.



  11. Sukrit Khera on January 24, 2010 at 2:02 AM

    Well, at times it feels that despite coming here legally, having excellent skill set , not faking my resume, higly valuable resource – I will have to keep worrying about this never ending stuff, keep waiting for my 485 approval for ever, unable to work in your home country ….. – and now I think for what ?

    I wish if I were working in an Indian company for an Indian client and that would have been so far better….- May be less pay and underutilization of talent …… but I would be working like a citizen for my own country with no worries….



    • Mike Greg on January 25, 2010 at 1:40 PM

      The changes are for protecting US jobs as many IT companies are misusing them. The body shoppers WIPRO, SATYAM MAHINDRA, TCS, INFOSYS should all be in line next after the small body shoppers are stopped. These big companies grew overnight by outsourcing US Jobs. They do not create new jobs but just OUTSOURCE.



      • Sid on January 26, 2010 at 2:41 PM

        Mr. Genius,

        I am one of those contractors and I went to USC (as in Univ of So Cal). You are saying the contractors don’t even have experience, which school did you go to and did you even graduate.



  12. Bobbi on January 22, 2010 at 8:32 PM

    Foolish Guideline again from USCIS!!!!!!!!!!! Any consulting company does want direct clients but its not easy to get direct clients so they place sometimes their consultants through larger companies who have direct clients..This in no way makes them less qualified.. I have seen many well qualified H1B consultants working like this and don't think this is any way wrong. If we really think deep why do we even need consulting companies. Most large companies can directly hire and let people go when they dont need them so we can close IBM!!!! USCIS guideline will be struck down by a court of law. This is the most foolish thing I have seen. Take an example.. US Government is main…Now US Government gives contract to Raytheon… Raytheon gives contract to IBM for consulting.. IBM outsources some work to Tek Systems largest contract IT player in USA… now Tek Systems is third party so not an employer no more!!!
    Most foolish!! Need to challenge it in a court of law.. Any Judge will see how foolish this sounds..



    • ram parivar on January 26, 2010 at 3:28 PM

      Sad thing to write on India's Republic day!

      Because of the consultants and their malpractices there is such a bad name for Indian community in US of A. Even big companies such as TCS, Infosys etc. get H1 VISA approved for their employees awaiting projects in US. This is atrocious, when there are many people in US waiting to change from one VISA to another, how can these big companies consume all the VISA numbers for a non-existing employment. I would suggest USCIS to initiate a strict rule saying that any H1B VISA applicant should have landed in US and be in US pay roll within 1-2 months of approval of H1B VISA or else he/she cannot come to US in H1B at all.

      Another issue is the consultants, in NJ/NY and Bay area may be all over US there are 1000s of consultants doing this fraudulent VISA practice. These guys are from mainly one particular state in INDIA. I do not want to name that. One guy will come to US and then bring the whole village within one year through a consultant company (may be his brother-in law's distant cousin – they have such a wonderful networking capability – only human networking). He gets paid for bringing people. Now this is SAD state of affairs. If anyone wants genuinely come here with all proper documents, the VISA officer and the people at POE look at you suspiciously!

      Very bad!

      SM



  13. An H1 Holder on January 21, 2010 at 4:41 PM

    WOW, Finally USCIS has woken up. I cant believe that this is really happening.I can’t believe it took so long for them to realize that so much fraud was going on.It is insane what this Desi companies do, they not only screw the consultants but also the government by not paying taxes. I will be so happy to see these body shops closing down. All the exploitation of consultants finally coming to end.No more fake resumes, No more layers, no more fraud

    The best law passes by USCIS …………



    • IndianInUS on January 22, 2010 at 7:44 AM

      More than 50% of new H1Bs every year goes to consulting companies. You can't tell everyone is fraud. I know tons of such companies doing legal contract with vendors of client and paying their employees properly on time and processing green cards, benefits etc. USCIS are considering those facts also before processing any H1B (new/transfer/extension) applications…



      • IndianInUS on January 22, 2010 at 7:50 AM

        You know how many big companies like HCL/Wipro/TCS/Infy/CTS changing employee's skillsets by providing training and trying to place in new technology, by projecting them as experienced people in that skillset? Is this process not fake? Don't tell only consulting companies are faking resume…



        • Amol on January 22, 2010 at 9:15 AM

          I hate this IT culture in India. HCL/TCS/WIPRO/INFY are sophisticated pimps where as there desi counterparts in US are street hustlers.Both thrive by selling body of poor consultants. This culture has altered our thinking process and made us cheap servants of western masters who dole out H1B visas and we like dogs runs for crumbs.

          Look at China who has grown strong by creating robust manufacturing jaggernaut which no IT company can match.They are producing goods and thus makin chinese people self reliant.Do Indian IT companies have guts to make software product and sell it world over or would they keep on living like parasites and dutiful servants.

          I wish to see a day when Indians stop complaining about H1B policies of their masters who throw crumbs at them.



          • IndianInUS on January 22, 2010 at 9:44 AM

            For that we should have elected better Govt in India, instead we are having family business not only in center, but also in many states…. People still voting minority Govt/parties for their own benefits of caste reservations in colleges & jobs and paying the price.



          • Vamsi on January 25, 2010 at 12:10 PM

            There is no sense is passing a rule like this where the consultant/Employee is affected badly.USCIS changes their views and rules on a need to need basis which should be struck down by the court of law.We as immigriants to US and we have every right to fight this rule and also need to support the need to revoke this rule.

            Even a criminal gets a chance to please in the court as not guilty,but we dont get a chance beyond the immigration counters.We continue to contribute so much tax dollars and all of that shouldnt go in Vain.People have lives and Families and they can never build or continue the future invested here in US.

            I agree that the rule will make sense for new H1's or extensions but i dont not agree that it should be passed on people randomly.USCIS should force such a rule on the Employer and not go against H1 Employees.

            This Rule should be taken by employers to implement new standards of practicing consulting and not try to find loop holes in the system.Obviously we should have seen this coming which is ripple effect of all the employers exploiting the Consulting business.

            Vamsi

            Status:EAD



          • Amol on January 25, 2010 at 1:47 PM

            Vamsi is on EAD he has nothing to worry about.



          • Vamsi on January 26, 2010 at 3:35 AM

            Not worried for myself.we were all there on h1 at one point.I am just lucky to get an EAD on time.

            I just don't think immigiriant rights need to be honored more than this.



          • Vamsi on January 26, 2010 at 5:21 AM

            I meant,The Immigrants rights need to be honored more than this.



  14. sreekanth on January 21, 2010 at 6:05 AM

    Well, see the facts man. If you look at numbers- there are only 1000 H1B visas filed by top INdian consulting companies. like Infosys, Microsoft etc…rest thousands (100,000) of H1Bs are being filed by these fraud Indian consulting (Body-shoppers) who will anything to make money. Let people fake resumes, layers, lies…these are FACTS.

    If you look at H1B worker- isn't he supposed to have job before he lands here- isn't he supposed to make money from day 1…I do not know how strictly the USCIS can enforce this memorandum..I am sure at the begining everything may look like mess- but if they can hold on to those rules for couple of years- everything will be streamed out. It is good for immigrants, good for Job market..it would fair game..smooth and clean. Poor Americans are having hard time undestading how this market is working- Fact is- it is just the fraud game. I lie that I know some technology- i get on board I will have somebody who has knowledge on phone…keep working…if i can fairwell..who cares..they will fire…just find an another job…as easy as it is…At most your contract gets terminated what do you have to loose….atleast you got free training in the real time environment. You will do better …keep trying…until you become knowledgble……:)..That is what is going on 90% of the cases.

    I myself is a H1B worker (from INDIA)- I went through all the tough times. It is the Cheap Consulting companies that misuse H1Bs. Hope USCIS sticks to that Memorandum strictly.



    • Amol on January 21, 2010 at 8:56 PM

      I guess Srikant was expert from the day he was born. In US if you dont get full time jobs how else one can survive. Consultancies give sopme respite to people who want to enter the work field and need experience.If consultancies are closed i guess companies should hire many entry level candidates after completing studies.



    • dg on January 22, 2010 at 3:34 AM

      It is very easy to target the small companies as frauds. Also your numbers are completely absurd (1000 by big giants and 100,000 by small companies). I do not know about 2009, but in 2008 top 5 companies got almost 30% of H1B visas. Do you think all the big companies are fair? It is a biggest joke. Companies small or big will try to get around of human laws to meet their means, period.

      No ethics from all the parties (Government, Clients, Vendors, Employers as well as Employees). Every one is trying to get their things done at the least cost and most profit.

      If one is not desperate and follow the Government laws, he should fine with what ever is happening. Once again, following the Govt. laws does not mean to be ethical.



    • Karthic on January 25, 2010 at 6:26 AM

      Yes..According to me USCIS is doing things which they should have been done before. The consultancies(Body shops) should be closed. If F1-OPT student doesn't get a direct job they join the consultancy and they too involve in all the fraudulent activities. What can a OPT Student do if he doesn't get a direct job ?..Joining the consultancy is the only left option…But It is really a high time to think Why we don't get direct jobs? You know the reason why people don't get the direct job is through the consultancies(Body Shop).. They fake the resume they send the fresher as a 5 yrs experienced person to client site..By default the fresher can't perform well as experienced guy.. The client will have a impression that even a experienced guy can't perform well what will the fresher do. so the real fresher loses the scope of getting project from the client.



      • Abhay on January 25, 2010 at 6:44 AM

        This all has become like a vicious circle. These body shops take away the jobs from freshers and give them the same jobs as fake candidates. If they were not there at the first place, the freshers would've bagged the same jobs. I myself just joined one of these guys for the time being. I need something to start off with. But, am applying directly too and hopefully will leave him in like 3, 4 months.



      • Amol on January 25, 2010 at 8:44 AM

        The rules of USCIS though seem to be in bad taste and causing lot of heartburn are not utterly rubbish.If the memo is implemented in spirit before shutting shops of small time body shops in US,they should stop companies like TCS,Infosys and others of same ilk.

        TCS,Infosys and others don't fit the description.As per the memo the employer who puts consultants on site should have direct supervision over them and also use their proprietary tools to complete the work.

        Can anyone let me know what tools or software do these so called Indian Giants have developed in all these years of their existence.
        Take case of others like IBM who is also in this consultancies business but they develop and use their tools.
        I am not saying that the petty job shops that exist in huge numbers USA are spotless,as they were opened just to earn quick green bags and in all these years they have committed lot of frauds and exploited lot of people. But the moot point is if the axe has to fall then the wedge should clearly fall on all irrespective of their reputation.Why spare the biggies.
        Let these big companies in India who have become fat of money from outsourcing and body shopping should feel the heat.

        USCIS is also guilty of making rules which have put many F1 students on dock. Students from India specifically come in large numbers to US with some objectives in mind.Some want to earn a living here after studies and some eventually go into academia. As the situation stands today,due to the faulty rules a layer is getting formed of all OPT students who cannot move ahead in chain as they cannot get H1B visas.This layer is getting bigger and bigger with total stagnation.No body is moving ahead thus choking the pipeline. Again i am not furthering the case of Indian people the situation is same for all nationalities.
        Sometimes i also feel USCIS wants to do away with large population of international students who stay put and keep searching for jobs.
        They have hit at the nerve center of the problem which is good as well as bad.
        Good because it will get the system rid of players who are exploiters to the core and don't have anything to offer. Bad because they were the hope for many students to get to next level in careers by gaining job and experience.
        Sadly USCIS does not have alternatives.This will hit student community in a big way.Working on OPT is ok but where would the jobs come from.There are limits to individual enterprise.How much and where can an individual apply for jobs.There are limits to it.So students on OPT will keep searching and if they don't find any gig they will leave the country.
        USCIS is mum on the status of people who are already on H1B through these job shops,what will happen to them. In fact many of them might have higher degrees from US universities.
        So students coming from India and China should consider this fact before coming to study in USA. Now that H1B program is in limbo they cannot be sure of getting jobs after completing their study. So those middle class Indian students who take up loans and reach this shore with stars in eyes and fire in belly will have to give a hard look at these facts. Because from my experience in todays world there is no connection between what you study and where you work. Those who are fortunate enough to get work in the field of their study are lucky i should say.Others have to go into refuge of big tree called as IT where every individual is a resource and has many other fellow brothers who with equal skills or faked skills vie for the pie.

        Coming months would show what picture emerges. Many people like me have been scarred by these three years;stories of which i can very well share with my grandchildren.



  15. Satya on January 19, 2010 at 8:16 PM

    working as a legal is tough in this country , while 1/3 of people are illegal here which may be legal soon after the new bill will pass.



    • Amol on January 21, 2010 at 9:00 PM

      i agree with satya, USA is a country where legal people become illegal because of the shitty visa regime and illegal people get permanent status.



  16. Elaine Martin on January 17, 2010 at 8:25 AM

    Thanks for linking to my blog!



  17. ben on January 17, 2010 at 6:51 AM

    Why does Axe always falls on existing people. Why cant this law be implemented on new petitions instead of charging against renewals



    • is.goldfish on January 21, 2010 at 6:25 AM

      right , we already facing challenges from every side being a contractor and now this also. they should apply all rules to new ones they will be mentally prepared.



    • Amol on January 21, 2010 at 9:03 PM

      If law is law then it should have retrospective effect. All the wrongs done should be made right.There are many cases in which people have to go back to school because of faulty policies of these consultants.If they want to join work force again why should they face such rules.



  18. tej on January 17, 2010 at 4:57 AM

    I am on student F1 visa doing master. now working with consultant company. my status is OPT now (got 17 month OPT Extention).I am going to apply fot H1 this year with consultancy. will it be possible for me to file H1?



    • Sai on January 21, 2010 at 8:07 AM

      From what I have been reading, it is not a good idea. If you have time on your OPT, use it to the max to find a full time position somewhere.

      (If I were in your position, I would continue working with the consulting company, and even file for H1 if they insist…but at the same time, I would rigorously search for a full-time job; because in all likelihood body-shop consulting is not going to work anymore)



      • Abhay on January 23, 2010 at 6:30 AM

        So, if we go to India during this OPT period (12+17 months), will they create any problem while coming back if we have letters from the consultants as well as the client? I am in the same situation (my 3 month initial OPT period just started). While I work for this consultant, I am thinking of applying full time directly to a company side by side and maybe change in a year or so.



        • Amol on January 23, 2010 at 8:27 AM

          You got to wait and watch before going to India.I also feel you might be safe because you are not on H1.



          • Abhay on January 23, 2010 at 10:18 AM

            Thanks a lot for the reply. But, when i bring my spouse with me, then what visa does she get, F2??



          • Amol on January 23, 2010 at 5:12 PM

            off course F2 as you are on F1 🙂



          • Abhay on January 23, 2010 at 9:11 PM

            Also,
            do you suggest me to utilize most of the 29 months that I get to work on F1 or should I go for H1 as soon as I can?



          • Fani on January 25, 2010 at 6:31 PM

            Yes, it is recommended to utilize most of the OPT period.

            Also, it is a good idea to look for a full time job even if you started working for a consultant as a contractor.



    • tej on January 28, 2010 at 2:38 PM

      My 13 month OPT is already over. So this year I have to apply for H1 . It is very hard to find full time job now. Right now I am working as contractor with consultant copmany. My consultant told me he is going to file my H1 this year and Memo wont affect it. Is it safe?



      • Amol on January 28, 2010 at 8:33 PM

        Hi Tej,
        I have friends on OPT who are close to completing a year of OPT and the consultant they have joined says they cannot file for H1B.But they can work on contract on OPT.
        What is the name of your company and in domain are you working.
        -Amol



  19. H1Ber on January 16, 2010 at 11:25 PM

    Where does it say in the memo that "mainly Indians" are targeted? Please stick to the facts, it is easy since the memo does not take to long to read.



    • HSB on January 17, 2010 at 7:43 AM

      There are 2 things in this article – Neufeld Memo itself and CBP officers in Newark who used that Memo. So, memo itself is not specific to Indian H1B workers, but the incident reported was specific to Indian It workers.



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