H-1B visa holders face a structural disadvantage because their legal status depends on a single employer. This creates an "employer lock-in." Most workers cannot simply quit for a better offer without initiating a complex transfer process that carries inherent risk.
This limited mobility suppresses bargaining power. The Department of Labor requires a Labor Condition Application (LCA) to ensure prevailing wages are met, but these floors often lag behind real-time market spikes. Firms may use this captive labor pool to keep payroll predictable.
When a segment of the workforce is discouraged from job-hopping, the general upward pressure on salaries weakens. This ripples outward. If companies don't have to compete aggressively for H-1B staff through raises, the incentive to boost pay for domestic workers in similar roles diminishes. The result is a dampened wage cycle within specific high-skill niches.
