July 3, 2003

Can Your Company Really be Subjected to Back Wages?

For those who are skeptical of the power and enforcement capabilities of the Department of Labor (DOL) in relation to H-1B regulations, the recent case of In the Matter of HNC Solutions, Inc. should be a warning. On Jun. 30, 2003, the Office of Administrative Law Judges approved the terms and conditions of a settlement agreement between HNC Solutions, Inc. and the DOL. While specifics of the violations and the DOL's investigation of the company were not disclosed in the order, it is safe to assume that the DOL fully audited the company's public access files following the submission of a complaint. The settlement included payment of $739,385 in back wages and $79,500 in civil money penalties.

With the continuing changes in immigration processing, the emphasis being placed on enforcement by all federal agencies regulating H-1B employees and the economic slump we continue to experience, many companies are now subjected to a higher level of scrutiny. Often this scrutiny is leading to audits which reveal H-1B practices that leave the company vulnerable and subject to payment of back wages, penalties and possible disbarment from using immigration programs in the future. In light of the current environment it is advisable to conduct regular in-house audits of not only Public Access Files for H-1B employees, but also of I-9 records, in an effort to minimize the company's liabilities. GT can assist you with implementing an affordable and efficient program for such in house reviews. For information on in-house audits and training sessions please contact the GT Business Immigration group at imminfo@gtlaw.com.