US company faces penalty for paying low wages to H-1B employees

Last Updated: Sep 14 2018 17:22

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

The report said that the United States 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.

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

The Department of Labour said that the 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 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.