And so do I. Or rather, so, did I. Got really sick of it and wised up.
I have seen exactly what I described and multiple times too.
It is possible to transfer an H1B visa if the new employer is willing to do that, and the previous employer does not object. If the employee was obtained from an Indian agency that holds an Indian indenture contract on that person, that transfer will not happen, unless the new employer pays a substantial buyout fee.
It is the modern-day equivalent of the slave trade.
US companies foolish enough to directly hire H1B's can get rooked if another employer is willing to accept the visa and pay a higher salary. I have seen that too. It is not common, but it does happen particularly with American companies run by Indians who want to bring in more Indians on staff.
I have no sympathy for American companies that lose in those circumstances. They deserve the losses. They should have spent the money on better salaries for Americans and better training programs. For Americans.
Once Indians get control of a department or a division, I have seen them insist on hiring only Indians, preferably from their own caste and region. They are flagrantly "racist" and white males need not apply.
What was old is new again.
No, the other company has no right to object. I've seen companies very angry that they paid all that money for the H1B, and the employee goes to another company to make more money.
Where do you think Intel’s problems came from? Cheap H1B labor + Indian management.