The trick is the H1Bs are not displacing American workers at the company they work at (the outsourcing company), the company is just expanding. Nor is Disney replacing it's workers with H1Bs, they're just outsourcing to another company.

And apparently, this loophole works, because a judge just dismissed the case.

http://www.thenewyorklawblog.com/2016/10/Disney-H1B-Visa-Law...

"The outsourcing companies successfully argued that the law did not apply to them because the plaintiffs who were displaced were not originally their employees."