I've never heard of this. How would it work? I assume that the $100K would be W2 income (a requirement for corporate sponsorship) and all of the related income taxes for both the employer and employee are paid up. How would the IT company get paid back without having to report this as something like sales income/revenue? Unless the "boss" is getting a personal cash kick-back under the table, I don't understand how this could even happen. If the "boss" is not the sole shareholder this is both extortion against the employee and embezzlement against the company - and probably tax evasion. If the sole shareholder, then still extortion and (probably) tax evasion.

Companies who do this ask their employees to pay back in inr in India. Companies settle this with some creative accounting. Regulations for financial reporting are a joke in India. Google it for details.

Really? That's kinda ... sleazy. And against US law. I'm assuming nobody reports it because nobody wants 100% of that company's H1B visas (including their own visa!) to be revoked in the US?

Yup. Sleazy is an understatement.

http://www.nbcbayarea.com/investigations/Silicon-Valleys-Bod...

This happens with the current system already. They get found out and charged accordingly.

Yeah but did it make any difference? Fine for abusing H1B is so low that its laughable.

>ask 40k back

how?

You'd be surprised at length Indian companies go to win contract and employees to get a chance to get out of India. Its nothing short of slavery.

People in western world think 9 percent unemployment rate is high; Now just think about close to 80 percent unemployment rate in chosen field of study. In such environment competition is so intense to get and hold a job, employees would do anything that companies tell them to. Including passing the 40% salary back to company under the table.