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Is it legal for a US employer to not promote US citizens that are currently part time to full time while hiring H1 Visa workers who do not do as good of a job?

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Yes, it is legal as the pipelines are different. H1 doesn't have the sort of requirements that you are thinking of. Maybe you are thinking of PERM.

Because the current I485 processing time is around 41 months or just shy of 4 years. That card gives you to opportunity to work and travel in/out of the country while waiting for your green card.

I don't believe that was the question.

I have worked at several employers (schools) that ignored qualified American citizens while claiming they could not find qualified people and tried to bring workers in on a H1 Vida or hire someone already here on a H1 Visa.

Is it legal to import someone on a H1 Visa while ignoring qualified American citizens who applied for the job?

Is it legal to hire someone already here on a H1 Visa while ignoring qualified American citizens who applied for the job?

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