News: US-IT firm fined around $3,55,478 for underpaying H-1B employees

#Employee Relations

US-IT firm fined around $3,55,478 for underpaying H-1B employees

The company has been asked to pay 12 employees $309,914 and has been imposed with a penalty of $45,564.
US-IT firm fined around $3,55,478 for underpaying H-1B employees

During an investment, the US Department of Labour Wage and Hour Division (WHD) had found People Tech Group, a technology staffing company guilty of abusing the H1-B visa employees by paying far below the required wages.

The news comes after an Indian-origin, CEO of two technology firms in Redmond, Washington was taken into custody for falsifying documents to bring foreign workers into the US illegally.

People Tech Group, which also has offices in Bengaluru and Hyderabad, has been directed to pay 12 employees $309,914 in back wages. Additionally, a fine of $45,564 has also been imposed on the company.

Earlier, in May it was reported that California-based Cloudwick Technologies was found guilty of paying temporary workers a mere $800 in monthly salary after promising them $8,000. A local public school district in Maryland was ordered in 2011 to pay $5.9 million in back wages, and fines. In a similar event, a New Jersey consulting firm had to give $300,000 to workers for similar offenses the following year.

According to the reports, WHD  has filed nearly 30 companies as willful violator under the H-1B programme. It is also reported that the majority of violators are Indian Americans or companies owned by them. Around ten companies have been debarred from hiring workers on H1-B visas.

Topics: Employee Relations, Compensation & Benefits

Did you find this story helpful?



Is technology the answer to new-age talent acquisition challenges?

On News Stands Now

Subscribe now to the All New People Matters in both Print and Digital for 3 years.

In the next three years, 120 million jobs in the world’s 10 largest economies will need retraining or re-skilling. To adapt to this new environment and help shape it, employees need to embrace continuous learning. Amid these changes, HR needs to not think, act, or be like traditional HR; they need to understand their job is now “human transformation”. In this issue, we will focus on what HR leaders and organizations need to consider today to prepare for tomorrow.

And Save 59%

Subscribe now