Pay It Back

More than $5 million is due in back wages and civil penalties, according to the Department of Labor, to foreign employees of a Michigan software consulting and services company. As a result of a five-year investigation, DOL has ordered the computer firm to compensate 232 workers -- who worked at the company on temporary H-1B visas -- that it says were not paid at wage rates required by law. If the workers cannot be located to receive their back pay, the money will be deposited in the U.S. Treasury.

H-1B workers must be paid either the actual wage paid by the employer to nonforeign employees for the same work, or the "prevailing wage" paid to U.S. workers for the same job in the local area, whichever is higher. The department investigated the company's records for the period between 1998 and 2000, and found that it violated the law on three fronts. First, there was a "willful failure to pay the required wage rate for productive work and nonproductive time," next, there was a failure to "accurately specify the wage rate and conditions" under which the H-1B nonimmigrants would be employed,and third, DOL said, the company failed to make available the documents it used to establish the prevailing wage for the jobs being filled by the H-!B workers.

The company is disputing DOL's calculations, and its spokesman said some of the employees for whom DOL requested payment were not in the country during the period in question. The company is working with the department to resolve the matter amicably, he said.