Imagine the following scenario:
An Indian worker would like to become a lawful permanent resident in the U.S. Rather than pursue an education and end up backlogged in the EB-2 filings, he is hired by an outsourcing firm in India that promotes him to manager in under a year. He works as a manager for one year and is then eligible for the green card with the shortest waiting time, the EB-1C. As soon as he is transferred, another manager is promoted and the cycle begins again. When he arrives in the U.S. the company displaces a U.S. worker whose wages were higher and replaces that worker with the Indian EB-1C holder.
This is compounded by the fact that the EB-1C does not require a PERM Labor Certification, which means that the Department of Labor does not mandate that the EB-1C holder must be paid the prevailing wage and no recruitment needs to take place at the job location to extend the work to qualified local workers. Unscrupulous firms can use this to hire cheap labor overseas and transfer them to the U.S. as EB-1C holders for the same low wages.
This seems to be less of a loophole and more of a lack of strict requirements for a very prestigious green card. The opportunity for EB-1C abuse and exploitation has not been missed by those looking to game the system. While H-1B petitions are steadily dropping, we may start to see an increase in EB-1C petitions.
This also presents an unfair disadvantage to immigrants who have been working in the U.S. under a nonimmigrant status. These people need to leave the U.S. to work for an overseas multinational company as a manager for a year before being eligible. Meanwhile, outsourcing firms are churning out multinational managers left and right who have never worked in the U.S.