Why would they agree to be paid under when they are in tech where companies until at least a year ago were fighting for employees? They could literally cross the street in SF and land a better job at a better price. I mean, for a country that prides itself on free markets, it’s remarkable that you believe that free markets simply stop working.
And here’s the kicker. An H1B employee costs a company a lot more than a resident because of government fees and lawyer costs.
So if you have a citizen and an H1B holder drawing the same salary, it actually means the company values the H1B holder far more than they do the citizen.
H1B can't simply cross the street and change companies. If they find themselves between jobs they will shortly find themselves between countries and many companies have been found to have made agreements not to hire each others people.
And here’s the kicker. An H1B employee costs a company a lot more than a resident because of government fees and lawyer costs.
So if you have a citizen and an H1B holder drawing the same salary, it actually means the company values the H1B holder far more than they do the citizen.