Cite as "AILA InfoNet Doc. No. 01083067 (posted Aug. 30, 2001)"
U.S. DEPARTMENT OF LABOR
EMPLOYMMENT STANDARDS ADMINISTRATION
CONTACT: Cheryl Palumbo/Bob Cuccia
FOR RELEASE: IMMEDIATE
Mon., Jan. 10, 1994
TWO COMPUTER PROCESSING FIRMS TO PAY MORE THAN $90,000 IN BACK
WAGES AND FINES FOR IMMIGRATION LAW VIOLATIONS
Complete Business Solutions, Inc. (CBSI), Farmington Hills,
Mich., and Digital Equipment Corp., Boston, Mass., have settled
with the U.S. Department of Labor for alleged immigration law
violations. CBSI has agreed to pay $45,000 in civil money
penalties (CMPs); Digital has agreed to pay $19,000 in CMPs and
$26,360 in back wages to 24 employees; and, both have agreed to
periods of nonparticipation in the immigration program that was
According to the 1990 amendments of the Immigration and
Nationality Act (INA), the Immigration and Naturalization Service
(INS) may issue H-1B visas allowing foreign workers in certain
specialty occupations to enter and work temporarily in the U.S.
Such occupations include computer programmers, engineers,
teachers, medical doctors and physical therapists.
Employers must apply for permission to petition for the
admittance and employment of H-1B workers and, among other
things, must certify that they will pay them at least the
prevailing wage rate for the geographical area. The Labor
Department's Employment and Training Administration processes the
applications; INS issues the visas; and, the Wage and Hour
Division enforces the employment conditions of H-1B visa-holders.
Labor Secretary Robert B. Reich said, "These requirements
are designed to protect the wages and working conditions of U.S.
workers by ensuring that employers of H-1B workers gain no
economic advantage from using temporary foreign workers instead
of U.S. workers. To this end, we have proposed revised rules to
strengthen the labor standards protection under the H-1B
Complete Business Solutions, Inc. (CBSI)
In a 1993 investigation of CBSI, the Wage and Hour Division
uncovered violations of INA's H-1B provisions affecting about 90
employees of the company. Besides paying $45,000 in civil money
penalties, CBSI has agreed not to participate in the H-1B program
for nearly five months.
CBSI also agreed to include in all "labor condition
applications" (LCAs) the applicant's job classification and
intended work site. CBSI must post notices informing their
employees that they may review the LCAs.
CBSI also will increase the number of domestic workers for
its 1994 training program by 25 more than participated in its
1993 training program.
Digital Equipment Corporation
In a 1993 investigation of Digital's H-1B program, the Wage
and Hour Division found that Digital underpaid 24 H-1B computer
programmers. Besides $19,000 in CMPs, Digital agreed to pay
$26,360 in back wages to the underpaid workers and adjust their
salaries to the required wage. Digital also will document in a
public access file the system used to establish each H-1B
Additionally, Digital has agreed not to participate in the
H-1B program for three months.
Wage and Hour Administrator Maria Echaveste, in commenting
on the two settlements, said, "The H-1B program serves to meet
the needs of America's employers while protecting the wages and
working conditions of America's workers. We are committed to
administering the program in a way that satisfies both goals, but
every employer who uses the H-1B program should know we will
enforce this law vigorously."
Part of the department's Employment Standards Administra-
tion, the Wage and Hour Division enforces, among several other
labor laws, the H-1B provisions of the Immigration and