Dive Brief:
- People Tech Group Inc., an information technology staffing firm, will pay 12 employees almost $310,000 after the U.S. Department of Labor said it violated the labor provisions of the H-1B visa program by paying its guest workers below the required wages, and sometimes not paying them at all. The Redmond, Washington, employer also will pay $45,000 in civil penalties.
- The company paid H-1B computer programmers and analysts entry-level wages, even though they performed work of highly experienced employees and should have received a higher prevailing rate, DOL said. People Tech also did not pay the employees when it failed to provide them with work, as the law requires, according to the agency.
- "The resolution of this case demonstrates our commitment to safeguard American jobs, level the playing field for law-abiding employers, and ensure no one is being paid less than they are legally owed," said Wage and Hour Division acting district director Carrie Aguilar in a statement.
Dive Insight:
Government agencies are cracking down on staffing firms across the country, and private plaintiffs aren't shying away from enforcement either, with one recent (but, so far, unsuccessful) lawsuit even alleging racketeering. As demand for workers, particularly temporary staff, continues to grow, businesses and staffing agencies may want to ensure their policies and practices are all up to par — especially when it comes to joint employment, which remains a gray area while federal agencies work to address the issue as it relates to several laws.
The H-1B visa program continues to make headlines as well. As the Trump Administration's "Buy American and Hire American" initiative continues, the pressure is on staffing agencies and employers to participate in the program legally. And with more applications being denied, business and staffing agencies may soon find that they're playing by new rules, requiring some adjustments to their workforce planning.