DOL Statistics Reveal Increase in Enforcement Actions Related to H-1B Program

The Department of Labor ("DOL") recently released statistics showing increased enforcement actions stemming from complaints relating to the temporary employment of highly skilled foreign workers under the H-1B program.

In the first ten months of fiscal year 2001, the DOL received 206 complaints, compared to the 140 complaints which were received in all of fiscal year 2000. By comparison, 135 complaints were received in fiscal year 1999 and 63 in fiscal year 1998.

The DOL has reported a marked increase in the number of complaints received from foreign workers alleging that they have been underpaid. The H-1B program requires that foreign national employees working for an employer in the U.S. in H-1B status must be paid the prevailing wage for their position in that geographic area, or at least as much as the employer pays similar employees, whichever of the two is higher.

An employer who violates this provision of the H-1B program by underpaying an H-1B employee can be assessed penalties which include backpay. The DOL reported that back wages found due to H-1B employees in fiscal year 2000 totaled approximately $1.6 million for 339 workers while in fiscal year 1999 the DOL had reported an approximate total of $360,000 in back pay for 206 workers. For this fiscal year, DOL statistics showed that between October 1, 2000 and July 31, 2001, 76 workers were due more than $762,000 in back wages.

We urge employers to take this opportunity to review their records and ensure compliance with the H-1B program. We can guide you through this process by conducting audits, training human resources personnel, and providing legal guidance on all aspects of the H-1B program.