> It's hard to understand why people are blaming the companies for playing by the rules of a system that is clearly dysfunctional.
They weren't playing by the rules, that's the point. The problem is no agency really had the authority to do anything about it (i.e., the rules were mostly in practice unenforceable.) It was essentially one of the many, many "good faith" type of laws we have in the US, where the government simply assumes that, because laws and rules exist, they will be followed, and there's a very high bar for action to be taken against lawbreakers. Whether you ascribe that to malice or incompetence on the part of our lawmakers is up to you.
From the GAO report on H1Bs:
> Under the law, in certifying employers’ initial requests for H-1B workers, Labor is limited to ensuring that the employer’s application form has no obvious errors or omissions. It does not have the authority to verify whether information provided by employers on labor conditions, such as wages to be paid, is correct. Moreover, some of this same information is reviewed again by INS during its assessment of employer requests for workers. Further, Labor has limited authority to ensure that employers are actually complying with the law’s requirements after the H-1B workers are employed in the United States. Unlike under other labor laws it enforces, Labor generally cannot initiate enforcement actions (such as conducting investigations and subpoenaing employer records), even if it believes employers are violating the law. [2]
Keep this in mind when people tell you there's no such thing as H1B abuse because the rules say they're required to pay the prevailing wage, or that they have to try to hire Americans first. For decades there have been virtually no consequences for flagrantly violating the rules. If it was especially egregious then you might face a lawsuit...but since you're a corporation with deep pockets and then people suing you are generally laid-off employees, that's a small risk, and you probably end up settling. [1] Keep in mind that no matter how much people cheerlead H1B, this [3] is the day-to-day reality: Americans being fired and their work being contracted out to these massive H1B firms on the cheap.
I'm not against a visa allowing companies to hire talent they really can't get in the US, but that is not at all the reality of the H1B program as it exists today, and thousands of people have suffered for it.
[1] https://www.nytimes.com/2016/01/26/us/lawsuit-claims-disney-...
[2] http://www.gao.gov/new.items/he00157.pdf
[3] http://www.latimes.com/business/hiltzik/la-fi-hiltzik-201502...