So, if I understand this correctly, they're essentially casting the H1Bs as commodities? "Purchasing" them for X salary, and then "selling" them for x + y salary?
If this characterization is correct, isn't this essentially what a typical staffing company does? That is, put a worker in a position at a third party company as a temp paying them x salary, then collecting from the client third party company x + y salary. With the only difference being in this case that the person placed comes from another country on an H1B.
(1) The laws are designed to eliminate choice and freedom to pursue other jobs for the people being placed.
(2) "Staffer" company is able to take their 50% or more cut from their salary for entire decade or more every single month.
Imagine if you were running staffer company with this business model where law says that workers can't leave the job you placed them and you get to pocket major part of their income for decade or more.
Technically sure they can leave your employment but practically they can't because they still get paid bit better than their home country although much less than prevalent wages in US even after staffer takes his 50% cut.
Yes, this is indeed what a typical staffing company does -- except citizens at staffing companies can jump ship anytime when a better opportunity comes their way. H1Bs, while not shackled, have a lot of tethers to their current employer which makes switching very difficult. Their lightly-tied handcuffs also make it very difficult to find better jobs/salaries/negotiate and result in holding wages down.
If this characterization is correct, isn't this essentially what a typical staffing company does? That is, put a worker in a position at a third party company as a temp paying them x salary, then collecting from the client third party company x + y salary. With the only difference being in this case that the person placed comes from another country on an H1B.