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US company fined for paying 12 H-1B employees below the required wages

Press Trust of India/Washington 14 Sep 18 | 07:45 AM

A Redmond-based information technology staffing company was asked to pay over $300,000 to its 12 H-1B employees for paying them far below their salary and has been imposed a penalty of over $45,000, a media report said Thursday.


The US Department of Labour Wage and Hour Division (WHD) during the investigation found the company, which has offices in Bengaluru and Hyderabad, violated the labour provisions of the H-1B visa program by paying its guest workers far below the required wages, the report said.

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As a result, People Tech Group Inc has been asked to pay its 12 employees $309,914 and has been slapped with a penalty of $45,564, it said.


Investigators found that the company paid entry-level wages to H-1B computer analysts and computer programmers who performed the work of much more experienced employees and should have received higher prevailing rates, the Department of Labour said.


The Group also did not pay the employees for the time when it failed to provide them work, as the law requires, the department said.


"The intent of the H-1B foreign labour certification program is to help American companies find the highly skilled talent they need when they can prove that a shortage of US workers exists," said Wage and Hour Division Acting District Director Carrie Aguilar in Seattle.


The resolution of this case demonstrates our commitment to safeguarding American jobs, level the playing field for law-abiding employers, and ensure no one is being paid less than they are legally owed, Aguilar said.


The Wage and Hour Division has listed nearly 30 companies as willful violator employers under the H-1B program.


As per the list maintained since 2013, a majority of willful violators are Indian Americans or companies owned by them. At least 10 companies, which includes eight willful violators have been debarred or disqualified from hiring foreign guest workers on H-1B visas.

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