Staffing company compensates employees for H-1B program violations after investigation

Login Consulting Services Inc., a Southern California-based staffing and recruitment company, has paid $58,815 after an investigation by the Department of Labor found the company to be in violation of the H-1B program. Investigators discovered that the company had illegally charged visa fees to the employee, “benched” the worker, and paid another worker below the guaranteed hourly rate established in the Labor Conditions Application they had submitted.

“Employers who wish to hire guest workers must fully familiarize themselves with the H-1B foreign labor certification program. The program is there to help American companies find the highly skilled talent they need when there is a shortage of U.S. workers,” said Wage and Hour Division District Director Kimchi Bui, in Los Angeles, California. “The resolution of this case demonstrates our commitment to safeguard American jobs, level the playing field for lawabiding employers, and ensure no one is being paid less than they are legally owed.”

Per the Department of Labor, “U.S. Citizenship and Immigration Services has established an email address dedicated to enable individuals (including both American workers and H-1B workers who suspect they or others may be the victim of H-1B fraud or abuse) to submit tips, alleged violations, and other relevant information about potential H-1B fraud or abuse. Individuals also can report allegations of H-1B violations by submitting Form WH-4 to the Division.”

H-4 Spouses of H-1B Visa Holders Face Work Ban

The federal government expects to publish a rule this month that will remove the authorization to work from around 100,000 spouses of H-1B visa holders. Husbands and wives of H-1B visa holders have been allowed to work since 2015.

First proposed by Homeland Security in 2017, the rule has been repeatedly delayed. The White House’s Office of Information and Regulatory Affairs has yet to issue approval of the rule, but has until June 20 to review it. Publication of the rule triggers a public-comment period, which can last from a typical 30-60 days to upwards of 180 days.

News outlets that have spoken with H-4 holders have expressed uncertainty as to whether they will remain in the U.S. or leave, along with their families. In addition to public opinion, the rule may face legal challenges, as pushback can be expected from the many companies that benefit from the H-1B program and face the loss of top talent.

We will continue to monitor updates of this development.