-----Original Message-----
From: News@JobDestruction.info
To: rbengrguy@aol.com
Sent: Thu, 8 May 2008 2:12 am
Subject: iGate/Mastech nailed for discrimination against Americans
<<<<< JOB DESTRUCTION NEWSLETTER No. 1864 -- 5/08/2008 >>>>>
It's not unusual to see job ads that specify that the applicant must be an
H-1B visa holder (this has been covered many times in this newsletter). Not
much ever happens to companies for being so blatant, although a few of them
have been warned by the DOJ to stop using discriminatory language.
Now a company finally got more than a warning -- this time they got a light
slap on the wrist! A large bodyshop called iGate Mastech was fined $45,000
dollars for discrimination against U.S. citizens.
A recent DOJ press release about the settlement is included below. The most
peculiar thing about it is that they gave no indication that the
Programmer's Guild initiated the investigation, even though it was the PG
who filed complaints about those fake job ads. Several articles that
appeared in tech magazines gave the PG the credit they deserve for spurring
the DOJ to take action against this company.
Under the circumstances it would seem reasonable to assume that iGate would
be required to hire Americans to fill the 30 computer programmer jobs that
were filled by discriminating -- but don't assume that. The DOJ press
release doesn't give any indication that iGate has to replace the 30 H-1Bs
with Americans, so the $45,000 fine just amounts to the cost of doing
business. On average employers save $20,000 a year per H-1B, so if iGate is
allowed to retain these H-1Bs for the six year term of an H-1B visa they
will save $3,600,000. That means they come out $3,555,000 ahead after the
DOJ slaps them on the wrist.
So, what could get iGate in worse trouble than discriminating against
Americans?
ANSWER: Underpaying H-1Bs!
One thing companies don't want to do is to get caught intentionally paying
H-1Bs less than the prevailing salary. Even though the prevailing salary
regulations have many loopholes that allow employers to legally game the
system, sometimes companies still try to push their luck.
iGate got into more trouble: the Dept. of Labor nailed them for underpaying
156 Filipino physical therapists. iGate will be fined $512,000 in civil
penalties and they will have to pay $3 million in back wages owed to the
workers. Keep in mind that the $3 million they will pay back to the
Filipinos is nothing more than the wages iGate would pay if they were
following the rules.
Call it a coincidence, but it looks like iGate stands to break even from
all of this: they save $3.5 million by discriminating against Americans and
they have to pay the Filipinos $3.5 million. Actually iGate will come out
ahead because they will still be able to employ the Filipinos at a
prevailing salary that will be below what American physical therapists
would make. If iGate employes the therapists for 6 years, they stand to
save $18,720,000 minus $3.5 million.
After all is said and done, except for legal fees iGate will come out about
$18 million ahead, which doesn't seem like much of a deterrent to others
that want to replace Americans with the cheap young blood of foreign
workers.
MY CONCLUSION: Discrimination against Americans is embarrassing but not a
big deal because the priority of our government is to protect foreign
workers, not citizens.. Underpaying foreign workers by cheating the
loophole-laden prevailing salary regulations is bad for business because
violators will have to pay back wages and might have to pay a perfunctory
civil fine.
************************
material included below
************************
http://www.usdoj.gov/opa/pr/2008/May/08_crt_369.html
FOR IMMEDIATE RELEASE -- USDOJ
iGate Mastech Inc. to Pay $45,000 in Civil Penalties to Settle
Discrimination Claim
http://www.dol.gov/opa/media/press/esa/esa20080364.htm
ESA News Release
New York City staffing company charged with violating H-1B program
following U.S. Labor Department finding almost $3 million in back wages due
156 workers
Advanced Professional Marketing Inc. also assessed civil penalty of
$512,000
http://blogs.eweek.com/careers/content001/h1b_foreign_workers/company_postin
g_h1b_only_job_ads_fined_45k.html
Company Posting 'H-1B Only' Job Ads Fined $45K
http://www.computerworld.com/action/article.do?command=viewArticleBasic&ar
ticleId=9081898&source=rss_news10
DOJ settles H-1B job ad case for $45,000
http://www.eetimes.com/news/semi/showArticle.jhtml?articleID=207500461
Consulting firm settles H-1B discrimination case
iGate case is tip of visa-abuse iceberg, lobbyist claims
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.usdoj.gov/opa/pr/2008/May/08_crt_369.html
FOR IMMEDIATE RELEASE
THURSDAY, MAY 1, 2008
WWW.USDOJ.GOVCRT
(202) 514-2007
TDD (202) 514-1888
iGate Mastech Inc. to Pay $45,000 in Civil Penalties to Settle
Discrimination Claim
WASHINGTON - The Department of Justice today announced that iGate Mastech
Inc. (iGate), a Pittsburgh computer consulting company, has agreed to pay
$45,000 in civil penalties to settle allegations that iGate discriminated
against United States citizens in its employment practices. The settlement
also requires iGate to train its recruitment personnel and to post a
nondiscrimination statement on its Web site.
The settlement stems from the Department’s finding that, between May 9,
2006, and June 4, 2006, iGate placed 30 job announcements for computer
programmers that expressly favored H-1B visa holders to the exclusion of
U.S. citizens, lawful permanent residents, and other legal U.S. workers.
Such preference constituted citizenship status discrimination and is
prohibited by the Immigration and Nationality Act.
We are committed to protecting the right of all authorized workers in the
United States against citizenship status discrimination," said Grace Chung
Becker, Acting Assistant Attorney General for Justice Department’s Civil
Rights Division. "We are pleased to have reached the settlement with iGate,
and look forward to continuing to work with the business community to
educate the public about the protections and obligations under the
anti-discrimination provisions of the Immigration and Nationality Act."
The Office of Special Counsel for Immigration-Related Unfair Employment
Practices (OSC) in the Civil Rights Division, which conducted the
investigation in this matter, will continue to monitor iGate to ensure
compliance with the settlement agreement. OSC is responsible for enforcing
the anti-discrimination provisions of the Immigration and Nationality Act
(INA), which protect U.S. citizens and certain work-authorized
individualsWorkauthind.htm from employment discrimination based upon
citizenship or immigration status. The INA also protects all
work-authorized individuals from national origin discrimination, unfair
documentary practices relating to the employment eligibility verification
process, and from retaliation.
For more information about protections against employment discrimination
under the immigration laws, call 1-800-255-7688 (OSC’s worker hotline)
(1-800-237-2525, TDD for hearing impaired), 1-800-255-8255 (OSC’s
employer hotline) (1-800-362-2735, TDD for hearing impaired), or
202-616-5594. Email osccrt@usdoj.gov, or visit the Web site at
http://www.usdoj/gov/crt/osc.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.dol.gov/opa/media/press/esa/esa20080364.htm
ESA News Release: [03/25/2008]
Contact Name: John M. Chavez
Phone Number: (617) 565-2075
Release Number: 08-0364-NEW
New York City staffing company charged with violating H-1B program
following U.S. Labor Department finding almost $3 million in back wages due
156 workers
Advanced Professional Marketing Inc. also assessed civil penalty of
$512,000
NEW YORK — Advanced Professional Marketing Inc. (APMI), a medical
staffing company based in New York City, and the company's president,
Marissa Beck, have been charged by the U.S. Department of Labor with
violating provisions of the Immigration and Nationality Act that authorize
employers to bring non-immigrant workers into the United States under the
H-1B program.
"The department is vigorously enforcing the law to protect American workers
from being undercut by employers who are underpaying temporary foreign
workers," said U.S. Secretary of Labor Elaine L. Chao.
An investigation by the department's Wage and Hour Division found that 156
H-1B guest workers from the Philippines, brought into the U.S. by APMI to
be employed primarily as physical therapists in hospitals and other medical
facilities in the New York metropolitan area, are owed almost $3 million in
back wages. The investigation revealed that APMI willfully failed to pay
required wages, filed lawsuits seeking penalties against some H-1B
employees for early cessation of employment, failed to make required
documents available for examination, failed to maintain required
documentation and used incorrect prevailing wage rates on labor condition
applications.
A determination letter enumerating the results of the investigation was
sent to the company and Beck on March 11 by Philip Jacobson, director of
the Wage and Hour Division's district office in New York City, which
conducted the investigation. The letter outlines the alleged violations and
assesses civil money penalties totaling $512,000 for the violations. It
also directs the respondents to pay back wages in the amount of $2,920,270
to the 156 H-1B workers. Finally, the letter informs the company and Beck
of their right to request a hearing on this determination before a Labor
Department administrative law judge within 15 days.
The H-1B program permits employers to temporarily hire foreign workers for
jobs in the U.S. in professional occupations such as computer programmers,
engineers, physicians and teachers. H-1B workers must be paid at least the
same wage rates as are paid to U.S. workers who perform the same types of
work or the prevailing wages in the areas of intended employment.
The Wage and Hour Division enforces the H-1B wage provisions of the
Immigration and Nationality Act, in addition to other federal laws
pertaining to wage payments. For more information, please visit
www.wagehour.dol.gov or call 866-4US-WAGE (487-9243) toll-free.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://blogs.eweek.com/careers/content001/h1b_foreign_workers/company_postin
g_h1b_only_job_ads_fined_45k.html
Friday, May 02, 2008 1:45 PM/EST
Company Posting 'H-1B Only' Job Ads Fined $45K
In the first half of 2006, the Programmers Guild, an IT worker interest
group, filed 300 discrimination complaints with the U.S. Department of
Justice against employers who had posted "H-1B visa holders only" ads on
job boards.
Two years later, it appears that in at least one case, the group's work has
paid off. The Department of Justice announced May 1 that it has fined iGate
Mastech, a Pittsburgh computer consulting company, $45,000 in civil
penalties to settle allegations that it had discriminated against U.S.
workers in its hiring practices, actively seeking to hire H-1B visa holders
only.
Three different iGate ads shared with eWEEK by the Programmer's Guild for
Java developer openings--one 5/30/06 and two dated 6/13/06--stated that the
company is "only looking for H-1B visas and should be willing to transfer."
According to the DOJ, there were 30 more posted between May 9 and June 4,
2006, that "expressly favored H-1B visa holders to the exclusion of U.S.
citizens, lawful permanent residents and other legal U.S. workers."
Such preference constituted citizenship status discrimination and is
prohibited by the Immigration and Nationality Act.
The Programmers Guild says that this fine is "probably the most visible
result of [our] campaign against companies that discriminate, and so far
we've only paid attention to the flagrant violators."
The Guild says that it is only scratching the surface of brazen companies
such as iGate right now, and its list doesn't even include those that only
hire H-1B workers but word their ads more carefully, as well as companies
that use preferred vendor lists to ensure their contract hires only come
from companies providing H-1B workers.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.computerworld.com/action/article.do?command=viewArticleBasic&ar
ticleId=9081898&source=rss_news10
DOJ settles H-1B job ad case for $45,000
Patrick Thibodeau
May 02, 2008 (Computerworld) A Pittsburgh-based computer consulting
company that advertised for H-1B visa holders only is paying $45,000 in
civil penalties to settle allegations that it discriminated against U.S.
citizens, the U.S. Department of Justice (DOJ) said Thursday.
The company, iGate Mastech Inc., placed 30 job announcements between May
and June of 2006 "for computer programmers that expressly favored H-1B visa
holders to the exclusion of U.S. citizens, lawful permanent residents and
other legal U.S. workers," the DOJ said in a statement.
A complaint against iGate Mastech was filed by the Programmers Guild in
2006. It was one of dozens of complaints lodged by the Summit, N.J.-based
organization against various companies.
John Miano, who founded the guild, said in a statement that the DOJ's
announcement was "is probably the most visible result" of the guild's
campaign against companies that discriminate against U.S. workers "in favor
of cheap H-1B workers."
One job advertisement by iGate Mastech for a Java developer on Dice
Holdings Inc.'s job board said "Only H-1s apply, and should be willing to
transfer H-1B."
"The problem of companies only looking for H-1B workers is a serious one,"
said Miano. "We are only scratching the surface right now with the
companies that are brazen enough to put out ads like these."
Grace Chung Becker, acting assistant attorney general for the Justice
Department's Civil Rights Division, said in a statement that the agency is
"committed to protecting the right of all authorized workers in the U.S.
against citizenship status discrimination."
The Office of Special Counsel for Immigration-Related Unfair Employment
Practices (OSC) in the Civil Rights Division, which investigated the
complaint, continues to monitor iGate to ensure compliance with the
settlement agreement, the DOJ said.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.eetimes.com/news/semi/showArticle.jhtml?articleID=207500461
Consulting firm settles H-1B discrimination case
iGate case is tip of visa-abuse iceberg, lobbyist claims
Rick Merritt
(05/02/2008 7:01 PM EDT)
URL: http://www.eetimes.com/showArticle.jhtml?articleID=207500461
SAN JOSE, Calif. The U.S. government fined a consulting firm $45,000 for
placing online job ads for computer programmers that said only H-1B visa
holders should apply. The case is just the tip of an iceberg of H-1B
abuses, according to a lobbying group that filed the original complaint.
The Department of Justice said iGate Mastech Inc. (Pittsburgh) placed 30
online job ads in May and June 2006 asking for only H-1B visa holders. The
case is one of 215 the DoJ has handled involving preference for H-1B
workers over U.S. citizens since the year 2000.
One of the iGate ads was for a Java programmer in the Midwest. It stated
"Only H-1s Apply, and should be willing to transfer H-1B."
According to government figures from 2007 iGate Mastech employed 14 H1-B
visa holders in 2007. It was one of nearly 30,000 companies employing a
total of 126,219 H1-Bs last year.
Three India outsourcing companies ranked as the top three firms employing
H1-B visa holders in 2007. Those companies were Infosys Technologies which
employed 4,559 H1-Bs, Wirpo Ltd. (2,567) and Satyam Computer Services Ltd.
(1,396).
"We are pleased to have reached the settlement with iGate, and look forward
to continuing to work with the business community to educate the public
about the protections and obligations under the anti-discrimination
provisions of the Immigration and Nationality Act," said Grace Chung
Becker, acting assistant attorney general for the Justice Department's
civil rights division, in a press statement issued May 1.
The settlement also requires iGate to train its recruitment personnel and
to post a non-discrimination statement on its Web site. Calls to iGate were
not returned by press time.
According to Ed Perkins, chair of an IEEE-USA committee on workplace
policies, "this case illustrates the need for Congress to act against such
egregious misuses of the H-1B visa program, by passing legislation such as
Senators Durbin and Grassley's H-1B and L-1 Visa Fraud and Abuse Prevention
Act."
The Programmers Guild, a lobbying group for software developers, claims it
has tracked as many as 5,000 such online ads from 1,000 companies. The
iGate compliant was one of 300 the group has drafted, about 100 of which it
has actually filed with the DoJ, said John Miano, a software consultant who
founded the group and serves as its treasurer.
"We're just dealing with cases where people actually have posted blatant
ads like this, not necessarily all the cases of people who abuse H-1B
visas," said Miano who earned a law degree and actively investigates such
cases on behalf of the Guild.
Miano claims the majority of H-1B visa holders in the computer field come
from what he called "body shops" that obtain H-1B visas for technical
workers for a fee and then rent out their services once they are in U.S.
Many wind up working in the computer departments of large end-user firms
such as Wall Street brokers or insurance companies, he added. The workers
are typically paid about 20 percent less than their local counterparts, he
claimed.
"For the last few years the U.S. has imported more H-1B than it has grown
new engineering jobs," said Miano. "This program is out of control," he
said.
The H-1B program has lived in a swirl of controversy.
Big high tech companies and industry groups want to expand the program and
other immigration initiatives because they say they can't find enough
technical talent. The U.S. education system is not graduating enough
students with the technical skills they need, they add.
Others claim the U.S. needs to clamp down on such programs which they claim
companies use to hire lower cost workers. They claim the U.S. has an
adequate supply of technology specialists.
Last fall, the IEEE-USA and the Semiconductor Industry Association jointly
lobbied Congress to create a new foreign student visa category. It would
allow science and technology specialists with a bachelor's or higher to get
permanent residency status and a green card on an expedited basis.
The group's claimed 51 percent of master's and 71 percent of Ph.D.
graduates in electrical and electronic engineering from U.S. universities
today are foreign nationals. These graduates often wait five to ten years
to get a green card, they said.
The Programmers Guild opposed the plan in a separate letter to Congress.
"Once obtaining a BS degree becomes a path to U.S. citizenship, U.S.
universities and subsequently the U.S. tech professions will be overrun by
foreign-born workers seeking any means to enter the US to escape the low
living standards that pervade most of the world," the group said in a
letter to Congress. "This deluge will continue regardless of whether a
labor shortage exists in the United States," the group added.
Norman Matloff, who helps run the Center for Immigration Studies and is a
vocal opponent of the H-1B program, published a study this month concluding
that H1-B visa holders do not hold exceptional technology skills compared
to U.S. citizens.
"Most foreign tech workers, particularly those from Asia, are in fact not
'the best and the brightest,'" wrote Matloff, who is also a professor of
computer science at the University of California, Davis. "This is true both
overall and in the key tech occupations, and most importantly, in the firms
most stridently demanding that Congress admit more foreign workers.
"Expansion of the guest worker programs--both H-1B visas and green
cards--is unwarranted," he concluded.
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