H-1B Employer Must Pay Back Wages

In a recent case from the U.S. Department of Labor, an employer that terminated an H-1B worker was ordered to pay back wages in the amount of $39,666.47, plus interest.

More importantly, the DOL held that termination of the H-1B employee did not become effective until the employer properly notified the immigration service about the termination. The judge held that even though the employee had not worked for the employer for several months, the employer must pay back wages because it failed to notify the immigration service in a timely manner.

This decision may have serious consequences in the H-1B world. Currently, many employers do not inform USCIS that the H1B worker has left the company as a favor to the employee so that the employee can try to find another employer willing to transfer the visa. As employers learn of this recent decision, I suspect that most will no longer be willing to hold off on informing USCIS and risk severe penalties.

For more information on H-1B visas, see http://www.cundyandmartin.com/practice-areas/immigration-law/h-1b.html

http://www.cundyandmartin.com/

http://www.oalj.dol.gov/PUBLIC/ARB/DECISIONS/ARB_DECISIONS/LCA/07_008.LCAP.HTM