Desi
owned IT firm asked to pay extra $2.25m to H1-Bs
NEW
JERSEY,
DEC 12: IT services company Computech Corp. has agreed to
pay $2.25 million in back wages and $400,000 in fines to settle a U.S.
Department of Labor (DOL) complaint that it underpaid 232
H-1B workers.Michigan-based Computech - a Certified Minority Business
Enterprise, will also be prohibited from participating in
the H-1B visa program for 18 months under an agreement
announced last week by DOL, reported ComputerWorld.
The firm was founded in 1996, and the settlement covers
violations alleged to have occurred between 1998 and 2000.
Computech boasts on its website of having more than 400
consultants spread over USA, Canada and India, with 24-48
hour response time for staffing requests. Its philosophy:
"Our solutions are the outcome of the synergistic
contribution of our most-valued resource - Our People, ".
Within two years of its founding, the company had brought
on more than 200 foreign workers. The company failed to pay
these workers minimum required wage rates and “frequently”
benched workers, the DOL said in a statement. Benching
refers to the practice of not paying workers in between
contracting jobs.
Vasudeva Patchava, a former Computech H1-B employee, said the
company agreed to pay him at least $53,000 a year. Instead
he received $35,000 a year.
With that salary, Patchava couldn't afford to buy a house
and bring his family to Michigan, so they stayed with
relatives for six months in Akron, Ohio, before they could
reunite when the company moved him out of Michigan, said
Detroit Free Press.
Despite agreeing to pay the back wages, Computech, which
has done work for the City of Detroit and George Washington
University in Washington, D.C., said it did nothing wrong.
Computech today has about 400 to 500 employees, according
to its president, Indian-American Ram Kancharla.
Ram told Detroit Free Press his company is less
dependent on H-1B workers today, but in 1998, there was a
shortage of workers with the technology skills in Java- and
Web-related work. Kancharla would not disclose the number of
H-1B workers the company now uses but said most of the
employees involved in the settlement have since left.
The firm, which handles ERP implementations, application
support and development, and remote database management,
does its work in India and the U.S. and has more than 200
employees based in the U.S.
Patchava stayed with Computech between 1999 and 2003. "I
didn't want to go to a different employer and get into the
same situation," said Patchava, 44, and now living in
Cupertino, Calif. He also felt pressured to stick with
Computech because the company sponsored his temporary visa.
Companies that hire large numbers of H-1B visa holders
have been accused in the past of being “body shops” that
underpay foreign workers and help U.S. firms move work
overseas.
“Abuse of the temporary foreign worker program is
not tolerated and violators, as this case shows, are
vigorously pursued, ” Secretary of Labor Elaine L. Chao
said in a statement.
According to immigration law, those employees are entitled
to a generally accepted wage for computer programmers for
about 40 hours a week, even when they do not have
assignments. The aim of the law, immigration law experts
say, is so companies pay the prevailing wage and do not
undercut wages paid to American workers.
H-1B worker visas are issued for up to six years.
The $2.65-million settlement is about $2 million less
than what the Department of Labor said the company owed in
March.
The settlement may be the largest back wage payment
ordered under the H-1B program, according to Brad Mitchell,
a DOL spokesman. |