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Employer ordered to pay Back Wages of about $253,000 for violation of H-1B Wage Laws
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In a recent decision from the United States Department of Labor Office of Administrative Law Judges (Administrator, Wage and Hour Division vs. Xcel Solutions Corporation), Administrative Law Judge (ALJ) Theresa C. Timlin held that the respondent-employer, Xcel Solutions Corporation as well as the company’s President and Vice-President, individually, had violated H-1B Wage Laws and ordered them to pay $253,888.92 in back wages to 16 former H-1B employees. Further, claims of two more former H-1B employees were remanded to the Lawrenceville New Jersey Wage and Hour Office for a determination of their applicable prevailing wage during the relevant period. The ALJ also upheld the Wage and Hour Division Administrator’s assessment of $72,450 in civil money penalties imposed on the respondent-employers for their various infractions, including the failure to pay the H-1B employees the prevailing wage and failure to post notices of an LCA at end client work sites.

This specific matter arose following a determination letter issued by the Wage and Hour Division finding that the respondent-employer had violated H-1B regulations by failing to pay the prevailing wage, provide notice of filing of the LCA, make required displacement inquiries of secondary employers, maintain adequate documentation, and cooperate in the investigation. Based on the evidence and testimony presented by the parties, the ALJ found that the respondent-employer had

  • failed to pay the prevailing wage to 18 employees during times when they were “benched” without assigned projects, and that the failure to pay prevailing wage was willful;
  • violated posting requirements;
  • failed to make secondary displacement inquiries and failed to maintain proper documentation;
  • failed to fully cooperate in the investigation.

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