Comment Re: Two sides to every issue (Score 4, Informative) 401
The law was changed over 15 years ago to allow the same H1B to be used when changing jobs.
You can transfer an H1-B, but the employer who currently holds it has to approve the transfer. The employer holding it can refuse to perform a transfer, and prevent the operation.
The law you refer to assumes cooperation between the parties.
It's occasionally found for some companies to basically hold "H1-B" and "Green Card Application" hostages to work at lower wages. I've worked at a couple of companies which I later found out employed this tactic, and I've seen several contracting agencies that contract for work, H1-B in workers, and then take up to 70% "commission" on the contract wages on top of everything else.
Technically, there is no such thing as a H1B transfer, there is only an H1B application. Only the hiring company is involved in an H1B application. It is utter and absolute made-up nonsense that the former employer has to approve anything.
I have heard that H1B and green card petitions are treated as mini-promotion steps. Instead of raises or promotions, sponsorships are given. Perhaps some smaller unscrupulous "contractor" organizations will do that. In the larger corporations, H1B and green card petitions are done as soon as possible as company policy and promised as such before employment is finalized.