H-1B Consultancy and Third-Party Vendors

A Survival Guide

The H-1B employment in the US has evolved drastically. There are consultancy firms, and third-party vendors are popular among specialists in the technological and IT sectors.

And even if you think that it’s the greatest chance of your life to snatch a really nice job — beware. There are complex challenges that are not easy to understand for any kind of specialist (except for H-1B visa specialists).

The Basic Structure of It All

The consultancy model typically operates as a three-tiered system. Your official H-1B employer and visa sponsor are at the base of this three-tiered system. They can connect with end clients (the one you’ll end up working for) directly or via third-party vendors (intermediaries). Such an arrangement surely has valuable opportunities, but we all also know that the more people pass down information, the weirder and shifted it becomes.

Think of it as a bridge with multiple spans: each connection point needs to be solid and well-maintained.

The consultancy firm must maintain a valid employer-employee relationship with you while simultaneously managing client relationships and ensuring compliance with all Department of Labor (DOL) and USCIS requirements. This delicate balance often creates pressure points where problems can emerge.

Challenges in Day-to-Day Operations

Have you heard of “benching”? This is one of the biggest concerns in consultancy arrangements. Benching means periods when workers don’t have projects on their hands and thus don’t get any payments for their jobs but are still tied to their employer. This is a popular practice among employers; however, it is prohibited under H-1B visa regulations.

Some employers offer a very small amount of money, delay payments, or create “training” periods just to create the visibility of work, and many employees accept this offer just because of the fear of jeopardizing their whole immigration status. Remember that H-1B regulations require payment at or above the prevailing wage from day one of the visa’s validity.

Documentation and Compliance

The documentation requirements for third-party placements are more complex than those for traditional direct employment. You need to have all the evidence that everything is legal and real: end-client letters, vendor contracts, and even detailed work itineraries, which are crucial to maintaining the visa status. And if something is missing or doesn’t add up, there is an RFE (Request for Evidence) process that checks everything, which, if something goes wrong, can cancel or deny an H-1B visa.

If you decide to move across the country — it’s another challenge. In most cases, the changing of the job means some kind of relocation. Here, you might run into LCA (Labor Condition Application), so they can make sure that all documents are fine. Any mistakes can lead to immigration proceedings in the future.

Short-term Decisions. Long-term Consequences

Any problems you get during consultancy arrangements can cast a long shadow on your immigrant’s future in the United States. Learn it, revise it, and never forget it.

Any minor inconvenience during the process (including visa revocations, renewal process complications, and immigration proceedings difficulties) can do plenty of damage in the future. The Department of Labor actively investigates H-1B employers, with particular attention to consultancy firms and their practices.

Protect Yourself Beyond the Basics

Protect your rights! This is a part of your success, which demands it. And the first rule of protecting yourself is to navigate consultancy arrangements. You can start by reviewing all your contracts — pay attention to all payment terms, work arrangements, and any penalty clauses. Be wary of firms that don’t want to show you any documentation or pressure you to sign blank forms.

Keep all the records — contacts, contracts, pay stubs, work location records, and communication regarding assignments. This is all your evidence to back up your words and actions if anything happens. Take photos of all the important papers, even if you are not sure whether you will need them in the future.

Learn how much money people in your job usually make — this helps you know if you’re being paid fairly. Understanding your rights and talking to other H-1B workers can also help you avoid problems.

When Problems Happen

Be quick if dirt hits the fan. Are you sure that your employer pays you poorly? Are you sure that others get more payment? Are you sure that you’re underpaid? Talk to an immigration lawyer first — you’ll understand how reporting problems might affect your visa status. Then, call the Department of Labor. They have a special office that helps workers with wage problems.

Sometimes, the best solution is to find a new job. Under H-1B rules, you can switch to a new employer when you want to — H-1B portability. But we must warn you — don’t quit your job moments after the slightest inconvenience — make sure you’ve tried to fix the issue with your boss. And if you are sure that you need to change jobs, find a new one before leaving the office. Otherwise, you might get visa problems if there is a gap between your jobs.

Building Your Future

The best you can do is to find a community that shares a similar situation. Keep your eyes wide open and think critically when needed. You can ask questions and share ideas, even with the consultancy bureaus. This is the basic rule of protecting yourself. Your immigration status and professional future deserve careful consideration at every step.