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Archived News Release--Caution:
information may be out of date.
For more information call: 202/219-8743.
Syntel, Inc., a computer services firm headquartered in
Troy, Mich., has agreed in a settlement with the U.S. Labor Department to
invest $1 million in worker training.
The settlement resolves issues raised by a department
investigation of the firm's employment of foreign workers earlier this year
under the Immigration and Nationality Act (INA). That investigation disclosed
$77,702 in back wages due to 40 employees. In addition to back wages, the firm
was assessed a civil money penalty for failure to properly pay its foreign
workers.
Syntel supplies computer programmers and analysts to
customer firms throughout the U.S. Many of its employees are foreign workers
admitted under the H-1B visa program established in 1990.
"We will continue to vigorously enforce this law to ensure
that U.S. workers are not displaced by employers hiring foreign workers for
less than the wages paid to comparable U.S. workers," said Labor Secretary
Robert B. Reich. "The department recently revised regulations governing the
H-1B program that strengthened protections for U.S. workers and businesses and
will help our nation maintain a level competitive playing field."
In the settlement agreement, Syntel will reduce its
reliance upon H-1B foreign workers by agreeing to:
- invest $1 million to give U.S. workers advanced computer training to
meet its customer requirements;
- increase by 10 percent the proportion of U.S. computer workers where
foreign workers are now employed;
- target recruitment toward workers in every local job market in which
Syntel employs 25 or more foreign workers before assigning any additional H-1B
workers to that job market and;
- make a good faith effort to determine whether any customer firm
workers have or will be displaced by Syntel employees, and if so, to interview
and offer employment to qualified displaced workers.
- In addition, Syntel will develop and institute an internal compliance
monitoring system to assure future compliance with the regulations governing
the H-1B program. It will conduct an internal audit to determine whether any
current employees have been underpaid; will pay $30,000 in civil money
penalties; and will not hire any new foreign workers for 90 days from the date
of the agreement.
The H-1B visa program allows temporary (up to six years)
admission into the U.S. of up to 65,000 foreign workers each year to be
employed in certain specialty occupations such as engineering, teaching,
computer programming, medicine and physical therapy. Employers wishing to hire
H-1B workers must certify that they will pay their foreign workers at least the
same wage rate that is paid to other workers already performing that job in the
area.
Prior to the settlement agreement, Syntel paid the back
wages owed to its employees.
The case was investigated by the Grand Rapids, Mich. office
of the department's Wage and Hour Division.
The settlement will be sent to a Department of Labor
administrative law judge for approval.
Archived News Release--Caution:
information may be out of date.
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