November 17, 2010, 1:55 PM — This news analysis is part of our special report on the 20th anniversary of the H-1B visa, which also includes first-person accounts from five IT workers who have been directly affected by the H-1B program and visual and interactive tools to help you analyze H-1B visa data.
When Congress created the H-1B visa program 20 years ago this month, it sent the American IT industry into uncharted territory from which it has yet to emerge.
The U.S. had an H-1 visa for foreign nationals with "distinguished merit and ability" prior to 1990, but that year, in response to warnings of an emerging "skills gap" or "skills mismatch" among U.S. engineering and technology professionals, Congress broadened the scope of the visa.
The H-1B incorporated specialty occupations -- including such IT roles as programming, systems analysis, and network and systems support -- with a minimum requirement of a bachelor's degree. The H-1B visa also allowed workers to pursue permanent residency.
Over the years, supporters of the visa have included Microsoft's Bill Gates and former Federal Reserve Chairman Alan Greenspan, who in 2009 told Congress that the annual visa cap of 85,000 is "too small to meet the need" and that protecting U.S. IT workers from global competition creates a "privileged elite."
Groups like the Economic Policy Institute have begged to differ. In a report released just last month by EPI researcher Ron Hira, an associate professor of public policy at the Rochester Institute of Technology, he argues that the H-1B along with the L-1 visa, which is used by multinational firms to transfer employees for temporary work, allow employers to bypass U.S. workers "when recruiting for open positions and even [to] replace outright existing American workers" with visa-holding foreigners. The H-1B's wage requirements are too low, according to the report, and because visas are held by employers, not workers, the H-1B promotes a relationship "akin to indentured servitude."