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Deloitte Pays H-1Bs 10% Less than American Counterparts

Analysis showed that the H-1B workers were paid approximately 10% less than their American peers at consultancy firm Deloitte

Deloitte Pays H-1Bs 10% Less than American Counterparts Image Credit: Jack Taylor / Stringer / Getty Images
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Foreign H-1B workers at multinational consultancy firm Deloitte receive starting salaries that are 10% less than their American counterparts, according to recently leaked data.

A study published in the September journal of the Journal of Business Ethics analysed the leaked data, comparing starting wages for American workers at Deloitte with those of foreign H-1B workers.

Analysis showed that the H-1B workers were paid approximately 10% less than their American peers.

“We observe that relative to U.S. citizen new hires — matched on office, position, and time of hire — newly hired accountants with H-1B visas receive starting salaries that are lower by approximately 10%,” the researchers said.

“We find, in line with the cost savings argument, that a Big 4 firm pays H-1B visa holders in tax and audit lower starting wages than U.S. citizen peer hires. There are several other explanations besides a desire to save on wage costs that could drive this wage discount (such as a difference in English communication skills or an attempt to recoup the considerable filing fees involved in hiring an H-1B worker). We are unable to identify the exact driver of this discrepancy, but our results are at least consistent with the pattern predicted by H-1B critics. In our secondary tests, we find no evidence that H-1B workers are substitutes for U.S. citizens in accounting, but rather some weak evidence of complementarities. That is, controlling for office size and growth, U.S. citizen new hires are paid slightly more in offices that have recently hired an H-1B visa holder in a peer role.”

There have been consistent accusations that the H-1B scheme is used to depress wages and cut costs by allowing firms to replace American workers with foreigners who are paid less.

Last year, a group of American workers won a $4.65 million lawsuit against Indian outsourcing firm Larsen & Toubro Infotech (LTI) after successfully claiming they were replaced by Indian H-1B workers. The lawsuit claimed LTI deployed a “four-pronged policy” to discriminate against American workers and ensure jobs went to Indian H-1B workers.

The H-1B program has been a source of intense, often angry, debate in the last few days after Twitter and SpaceX owner Elon Musk suggested the US needs an expansion of legal immigration to fill critical jobs.

Response to Musk’s comments, and to comments made by Vivek Ramaswamy, Musk’s compatriot at the newly formed Department of Governmental Efficiency, have been furious on social media, with many accusing the billionaire of wanting to replace American workers with a cheaper, more compliant foreign workforce.

The debate has drawn attention to abuses of the H-1B system, and to the fact that there already exists an immigration pathway, the 0-1 visa, for candidates of exceptional quality.

During President Donald Trump’s first term, the H-1B visa system was reformed in an attempt to prevent companies firing American workers and replacing them with foreign workers; however, those reforms were reversed by President Joe Biden in 2022.


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