U.S. Department of Labor Investigation Recovers $173,044 in Wages For 12 Technology Employees Due to Violations of the H-1B Visa Program

SAN FRANCISCO, CA – IT employer Cloudwick Technologies Inc., based in Newark, California, will pay $173,044 to 12 employees for violations of the federal H-1B foreign labor certification program after an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD).

WHD investigators found that the company paid impacted employees well below the wage levels required under the H-1B program based on job skill level, and also made illegal deductions from workers’ salaries. As a result, some of the H-1B employees that Cloudwick brought from India with promised salaries of up to $8,300 per month instead received as little as $800 net per month.

“The intent of the H-1B foreign labor certification program is to help American companies find the highly skilled talent they need when they can prove that a shortage of U.S. workers exists,” said Susana Blanco, Wage and Hour Division District Director in San Francisco. “The resolution of this case demonstrates our commitment to safeguard American jobs, level the playing field for law-abiding employers, and protect guest workers from being paid less than they are legally owed.”

In addition to the recovery of back wages, the IT employer has also signed an enhanced compliance agreement requiring them to hire an independent third-party monitor to help ensure future compliance.

Cloudwick Technologies provides data solution services to major corporations nationwide, including American Express, Bank of America, Apple, Cisco, Comcast, Intuit, Safeway, Verizon, Visa, and many others.

To further deter and detect abuse, U.S. Citizenship and Immigration Services has established an email address which will allow 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 department’s Wage and Hour Division.

For more information about the department’s foreign labor certification program, visit https://www.foreignlaborcert.doleta.gov/. For more information on enforcement of the nondiscrimination requirements of the H-1B program, visit https://www.dol.gov/whd/immigration/h1b.htm.