Labor Department settles H-1B case for $1.7M (IT services firm didn't pay required wages)

[Omaha Steve]

http://www.computerworld.com/action/article.do?command=viewArticleBasic&taxonomyName=compliance&articleId=9118788&taxonomyId=152&intsrc=kc_top

IT services firm didn't pay required wages in case involving 343 H-1B workers, agency says

October 31, 2008 (Computerworld) WASHINGTON -- A Virginia-based IT company will pay nearly $1.7 million to 343 employees holding H-1B visas under a settlement with the U.S. Department of Labor.

The Labor Department, in an announcement yesterday, said that Globalcynex Inc. in Sterling, Va., had not paid the employees their required wages from March 2005 through March 2007. Moreover, the Labor Department said H-1B workers were charged training fees of $1,000 to $2,500 in violation of the law.

If the settlement were split evenly among all 343 employees, they would get nearly $5,000 each.

The settlement is one of the largest of its kind involving the H-1B program. A recent internal study by the U.S. Citizenship and Immigration Services (USCIS) suggests that problems with the visa program are widespread. The study, based on an examination of about 250 H-1B users, concluded that as many as one in five H-1B applications involve fraud or the use of inaccurate data that is in technical violation.

"This case underscores the firm stance the wage and hour division is taking to ensure that employers do not undercut American workers by underpaying temporary foreign workers," said Corlis Sellers, regional administrator for the Labor Department's wage and hour division's northeast region, in a statement.

The H-1B program has been attacked by U.S. Sen. Chuck Grassley (R-Iowa) as a means replacing U.S. workers.

FULL story at link.

[Duke Newcombe]

1. Dear Greedy, Out-sourcing I.T. firms...

...bet those H1B wage slaves aren't as inexpensive as you thought now, are they??? :)