US Labour Dept Slaps Penalty on IT Staffing Co for Underpaying H-1B Employees | CORPORATE ETHOS

US Labour Dept Slaps Penalty on IT Staffing Co for Underpaying H-1B Employees

By: | September 18, 2018

Sep 18: A Redmond-based information technology staffing company was found guilty of violating the labour provisions of the H-1B visa program by the US Department of Labour Wage and Hour Division (WHD). The company was paying its H-1B workers much below the required wages, and was subsequently fined in addition to directing the company to disburse the dues to its employees.

People Tech Group Inc, which also has offices in Bengaluru in Hyderabad, was asked to pay $309,914 to 12 of its employees working under the H-1B category. The company was also slapped with a fine of $ 45,564 for not complying with the H-1B visa program.

As per the report, the company was paying entry-level wages to 12 of its H-1B workers working in the company as computer analysts and computer programmers. The investigation found that this was despite the workers performing more experienced works in the company. The Department of Labour said that the employees were eligible for higher pay.

Besides, the Group has also said that the employer didn’t pay the employees for the time when it failed to provide them with work as per law. Wage and Hour Division Acting District Director Carrie Aguilar said that the resolution reflected the commitment of the US in ensuring that no one is being paid less than the legally owed salary. He added that the H-1B foreign labour certification program was implemented with the intent to help American companies find highly skilled talent during time of shortage in US workers.

Around 30 companies have been listed as wilful violator employers under the H-1B program by the Wage and Hour Division, of which a majority are Indian Americans or companies owned by them.