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H1B body shopping faces crackdown as wage gaps with US workers raise alarms
Business
Published on 24 April 2026
Outsourcers can set wages using their own lower rates
The U.S. Department of Labor is warning about “body shopping” in the H-1B program, where staffing firms place foreign workers at client sites. Officials say it lets wages be compared against the outsourcing firm’s lower pay levels, potentially widening gaps with U.S. workers. A proposed rule would push prevailing wages higher to close the loophole and tighten compliance.
- Body shopping places H-1B workers at client sites via outsourcing firms
- Wage comparisons may be skewed using the vendor’s lower pay rates
- This could widen pay gaps between H-1B workers and U.S. workers
- A proposed rule would raise prevailing wages to address loopholes
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times