In 1998, Congress raised the H-1B cap and then set some controversial H-1B visa rules. It prohibited the largest users of H-1B visa — firms employing 15% or more visa workers — from displacing U.S. workers. They also are required to make a “good faith” effort to recruit a U.S. worker for a position.
Congress then inserted a massive loophole.
U.S. workers can be displaced by H-1B-dependent employers — such as IT outsourcing firms — provided the visa holder has a master’s degree or the company pays visa workers at least $ 60,000. This salary level has not changed in 18 years.