labor lawAdivision of labor law center

 A firm specializing in information technology has been ordered to pay nearly $1.7 million in back wages to H-1B non-immigrant workers following an investigation by the U.S. Department of Labor in a case that should sound a warning for every employer.

The company, GlobalCynex, Inc. ,  is a division of Sterling information technology. According to its website, the company bills itself as “a leading Global Consulting and IT services company, providing a broad array of solutions customized for a range of key verticals and horizontals. From strategy consulting right through to implementing IT solutions for customers, providing innovative business and technology services that deliver measurable results.”

The total award of $1,683,584 to 343 workers amounts to just under $5,000 per employee.

An investigation by the Wage and Hour Division of the department found that employees hired under the H-1B program were not paid required wages from March 2005 to March 2007.

Investigators also found that the Virginia company charged new H-1 B workers fees for training ranging from $1.000 to $2,500. Such fees are in violation of the law.

“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 Wage and Hour Division’s Northeast Region.

Under the H-1 B visa program, employers are permitted to temporarily hire foreign workers for professional occupations such as computer programmers, engineers, physicians and teachers.

H-1B workers must be paid at least the same wage rates as those paid to U.S. workers who perform the same types of work or the prevailing wages in the areas of intended employment. This measure protects U.S. workers by making it impossible for employers to import cheap foreign labor for skilled positions.

The Wage and Hour Division enforces the H-1B wage provisions of the Immigration and Nationality Act, in addition to other federal laws pertaining to wage payments.

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