If there are reasons to complain, _both_ H-1B holders and others are encouraged to complain. But just because some projects are staffed with H-1Bs, there is no indication of foul play. From the link you posted:

    Examples of H-1B fraud indicators may include:

    * The H-1B worker is not or will not be paid the wage certified on the
      Labor Condition Application (LCA).
    * There is a wage disparity between H-1B workers and other workers 
      performing the same or similar duties, particularly to the detriment 
      of U.S. workers.
    * The H-1B worker is not performing the duties specified in the H-1B 
      petition, including when the duties are at a higher level than the 
      position description.
    * The H-1B worker has less experience than U.S. workers in similar 
      positions in the same company.
    * The H-1B worker is not working in the intended location as certified 
      on the LCA.

Our entire company including founders are people on H1B. If USCIS harasses us we will move to Canada or some place else.

Being located in the US but staffed 100% from overseas sounds strange. Did you guys make a conscious decision to exclude US born workers?

Moreover, please walk me through your "I'll take my ball and go to Canada" ultimatum : if you don't employ a single American, why should Americans care about this particular threat? Are your contributions to the local economy that significant?

There is no threat to anyone here.

We were 5 students from different countries who came here and started the company. Being almost bootstrapped company and pretty small one we had a hard time hiring people who would both pass our bar and willing to work for us. For all the low end work we would simply outsource it to India/Pakistan/Russia and other countries.

>why should Americans care about this particular threat ?

No one needs to care about anything. It is just that we will leave. It is upto Americans to wonder if are worth anything. May be Americans will be better off with it somehow I do not know. But the problem is more business, revenue and potential growth that would move out of the borders permanently.

Surely they pay taxes locally, no?

Like Apple? lol

If they are ALL on H1Bs, then why are they located in the states at all? I'm pro immigration (and H1B), but that just seems weird.

so they can reap the benefits of US investment?

Following reasons :

Almost all employees are from different countries India, China, Japan and UK. There are very few places on earth where we could have met as students. It is a co-incident. If we were studying at Singapore University we would have setup our company there.

It just doesn't seem what the H1B was meant for.

It isn't :)

Umm that doesn't seem possible. The H1b is an employment visa. As in someone literally has to employ you. Are you sure they're not on EB1?

Companies pull this kind of stuff, then wonder why there is a push back against globalization. Americans need to benefit from globalization, too! If most American work is displaced by foreigners, it really screws our society and economy, amplifying inequality to insane levels.

How are the founders on H1B? That's a temporary worker visa that requires employment sponsorship. An EB1 would be the more appropriate visa. If the founders are sponsoring their own visa -- well that would be a neat trick.

As far as the entire company being H1B -- is it even possible that not a single American was available for a job?

H1B is heavily abused.

It's perfectly legal now to be a founder on an H1B if there is a way for the "company" to fire any individual. Establishing a board of directors with investors or having 3 co founders so that any 2 can fire the third.