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H-1B Employer Faces Heavy Penalties for Failure to Comply With H-1B Provisions

A computer consulting company in Newark, New Jersey has been ordered to pay $638,449 in back wages and interest to 67 workers and civil penalties of $126,778 for failure to comply with H-1B provisions. As a computer consulting business, the company sponsored H-1B employees to work as programmer analysts at various client sites in the U.S., but failed to provide notice of the filing of labor condition applications (LCAs) at each worksite where the H-1B worker would be employed and took action against H-1B workers for early cessation of employment. Pursuant to H-1B regulations, a LCA providing notice of the job opening and the prevailing wage offered must be posted at the place of employment. Investigations conducted by the Department of Labor found that the most common violations involved an employer’s failure to post notice of the LCA at every worksite where an H-1B worker may be employed and failure to properly compensate the H-1B worker for nonproductive periods resulting from lack of assigned work, lack of a permit or preparing for a licensing exam. In this instance, as a result of its violation, the computer consulting company is not only subject to paying back wages and civil penalties, it is also excluded from participation in the H-1B program for one year.

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