On August 16, 2025, major U.S. tech companies, including OpenAI, Instacart, and Udemy, faced accusations of exploiting loopholes in the H-1B visa program by posting job advertisements in local newspapers that allegedly target immigrant workers rather than American citizens.
The practice, reported by Newsweek, involves listing roles in outlets like the San Francisco Chronicle, directing applicants to immigration or “global mobility” departments, which critics argue discourages U.S. workers from applying.
As the Trump administration considers tightening H-1B regulations, the controversy has reignited debates over the program’s impact on American job opportunities.
Details of the Alleged H-1B Misconduct
Under U.S. Department of Labor rules, companies sponsoring H-1B visa holders for green cards through the Permanent Labor Certification (PERM) process must advertise roles publicly to prove no qualified American workers are available.
This includes postings in at least two major Sunday newspapers, state workforce agency sites, and internally within the company, per Newsweek.
However, recent ads in the San Francisco Chronicle by OpenAI, Instacart, and Udemy have raised concerns for directing applicants to send resumes to immigration-focused departments, such as “immigration@udemy.com” or global mobility teams, rather than standard HR channels.
The team behind Jobs.Now, a website dedicated to sharing H-1B-related job listings with American workers, told Newsweek, “Americans are not aware that major companies are routinely discriminating against them for the simple fact of being Americans in their own country.”
They argue that these ads, often requiring paper mail or email-only applications, are designed to limit U.S. applicant responses, skewing the labor market test in favor of existing H-1B workers.
The group, speaking anonymously, highlighted the issue amid rising unemployment among college graduates, emphasizing the need to address hiring discrimination, per Hindustan Times.
Context of the H-1B Program and Trump’s Policies
The H-1B visa program, established by the Immigration Act of 1990, allows U.S. employers to hire foreign workers for specialty occupations requiring a bachelor’s degree or equivalent, with a cap of 85,000 visas annually (65,000 standard and 20,000 for advanced degree holders), per Pew Research Center.
In 2024, nearly 400,000 H-1B applications were approved, with 73% of recipients from India.
The PERM process, critical for transitioning H-1B workers to green cards, requires employers to demonstrate a lack of qualified U.S. candidates.
The Trump administration has signaled reforms to the H-1B program, with a proposed rule approved by the White House to prioritize higher-paying and skilled positions.
Vice President JD Vance has criticized the program, advocating for reduced reliance on foreign workers, while GOP Representatives Tom Tiffany and Andrew Clyde introduced legislation to tighten restrictions, arguing for prioritizing American talent.
Additionally, starting September 2, 2025, mandatory in-person interviews for H-1B renewals will be required, ending previous exemptions, per X posts by @Rightanglenews and @SD73660.
These changes reflect Trump’s “America First” agenda, though his support for the program has sparked tensions with MAGA critics, per Newsweek.
Industry and Public Reactions
The allegations have drawn significant attention, with Jobs.Now claiming its platform has generated thousands of applications from U.S. workers for H-1B roles, though it reports no government action against offending companies.
The Equal Employment Opportunity Commission (EEOC) announced in February 2025 that it would prosecute firms favoring foreign workers, with Acting Chair Andrea Lucas stating, “The EEOC is here to protect all workers from unlawful national origin discrimination, including American workers.”
Past settlements with Facebook in 2021 and Apple in 2023 over similar practices highlight ongoing issues.
Public sentiment on X reflects outrage, with @mybuddysully and @dailyjobcuts posting on August 16, 2025, about tech companies “bending H-1B rules” to target immigrants.
Critics argue the practice undermines American workers, while supporters, including tech leaders like Elon Musk, defend H-1B for addressing skill shortages, per Pew Research Center.
A 2022 report cited by The Financial Express found H-1B workers’ median wages grew 52% from 2003 to 2021, compared to 39% for all U.S. workers, suggesting they are not “cheap labor.”
Implications for U.S. Workers and Immigration Policy
The controversy underscores flaws in the H-1B and PERM processes, which critics like Ronil Hira of Howard University call “a joke” due to minimal enforcement, per ProPublica.
The reliance on print newspaper ads, a requirement dating back 35 years, reduces visibility for U.S. workers, who typically use platforms like LinkedIn.
With unemployment rising among tech graduates, the issue could influence Trump’s immigration reforms, especially as companies like Oracle and Tesla, aligned with Trump, sponsor H-1B workers for green cards.
The visa program’s complexity, with four application stages and a lottery system, burdens smaller firms and risks exploitation of foreign workers, who face long green card waits, per Forbes.
As the administration tightens oversight, including issuing Requests for Evidence for H-1B petitions, per Newsweek, the debate over balancing economic needs with worker protections will shape future policy.
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