Indian-American owned IT company fined for H1-B visa violations

Agencies
May 2, 2018

Washington, May 2: An Indian-American owned IT company in California was on Wednesday asked to pay USD 173,044 in wages to 12 of its foreign employees, most of them from India, in violations of the H-1B visa program salary requirements.

Investigations carried out by US Department of Labour's Wage and Hour Division revealed that some of the H-1B employees that information technology provider Cloudwick Technologies Inc. brought from India with promised salaries of up to USD 8,300 per month instead received as little as USD 800 net per month.

Notably, the crackdown on the company came just a day after many countries in the world celebrated the International Labour Day (International Workers Day or May Day).

Based out of Newark in California – in the famed Silicon Valley – Indian-American Mani Chhabra is the founder and CEO of the Cloudwick Technologies, as per the company's website.

It describes itself as leading provider of bimodal digital business services and solutions to the Global 1000. Its services include big data, cloud, advanced analytics, business intelligence modernisation, data science, big data pilot-to-production, IoT, mobile application development.

According to the company, its clients include the likes of Bank of America, Comcast, Home Depot, Intuit, JP Morgan, NetApp, Target, Visa, and Walmart.

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.

"The intent of the H-1B foreign labour certification program is to help American companies find the highly skilled talent they need when they can prove that a shortage of US workers exists," said Susana Blanco, Wage and Hour Division District Director in San Francisco.

"The resolution of this case demonstrates our commitment to safeguarding American jobs, level the playing field for law-abiding employers, and protect guest workers from being paid less than they are legally owed," Blanco said.

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, a media release said.

To further deter and detect abuse, US Citizenship and Immigration Services has established a dedicated 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.

Silicon Valley companies and high-tech ventures are among the largest employers of foreign workers with H-1B visas. The number of visas awarded each year is capped at 85,000.

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News Network
June 6,2020

United Nations, Jun 6: US President Donald Trump’s response to protests against the killing of African-American George Floyd has included language “directly associated with racial segregationists” from America's past, a group of UN human rights experts have said.

There have been widespread protests across the United States as Floyd, 46, was killed by a white police officer in Minneapolis. People from diverse backgrounds have called for justice and have voiced their support to the protests.

In the wake of protests over the killing of Floyd, Trump had tweeted that “when the looting starts, the shooting starts.”

“The response of the President of the United States to the protests at different junctures has included threatening more state violence using language directly associated with racial segregationists from the nation’s past, who worked hard to deny black people fundamental human rights," a statement issued on Friday by over 60 independent experts of the Special Procedures of the United Nations Human Rights Council said.

"We are deeply concerned that the nation is on the brink of a militarised response that reenacts the injustices that have driven people to the streets to protest,” it said.

A report in The New York Times had said that the phrase "When the looting starts, the shooting starts” was used by Miami’s former police chief Walter Headley in 1967. Headley had been “long accused of using racist tactics in his force’s patrols of black neighbourhoods,” the NYT had said.

They said the recent killing of Floyd has shocked many in the world, “but it is the lived reality of black people across the United States. The uprising nationally is a protest against systemic racism that produces state-sponsored racial violence, and licenses impunity for this violence.”

They noted that following the recent spate of killings of African-Americans, many in the United States and abroad are finally acknowledging that “the problem is not a few bad apples” but instead the problem is the very way that economic, political and social life are structured in a country that prides itself in liberal democracy, and with the largest economy in the world.

Separately, 28 UN experts called on the US Government to take decisive action to address systemic racism and racial bias in the country's criminal justice system by launching independent investigations and ensuring accountability in all cases of excessive use of force by police.

“Exactly 99 years after the massacre in Tulsa, involving the killing of people of African descent and the massive loss of life, destruction of property and loss of wealth on ‘Black Wall Street’, African Americans continue to experience racial terror in state-sponsored and privately organised violence,” the experts said.

Strongly condemning the killings of Ahmaud Arbery, Breonna Taylor and George Floyd, the experts called for systemic reform and justice. “Given the track record of impunity for racial violence of this nature in the United States, Black people have good reason to fear for their lives.”

Taylor, a 25-year-old emergency medical technician was shot in her bed when police raided the wrong house; Arbery, 25, was fatally shot while jogging near his home by three white men who chased and cornered him; and Floyd was accused of using counterfeit currency in a store and died in the street while a white officer knelt on his neck and three others participated and observed.

“The origin story of policing in the United States of America starts with slave patrols and social control, where human property of enslavers was ‘protected’ with violence and impunity against people of African descent. In the US, this legacy of racial terror remains evident in modern-day policing,” the experts said.

The experts also raised concern about the police response to demonstrations in several US cities, termed by some the ‘Fed Up-rising’, that have been marked by violence, arbitrary arrest, militarisation and the detention of thousands of protesters. Reporters of colour have been targeted and detained, and some journalists have faced violence and harassment.

“Statements from the US Government inciting and threatening violence against protesters stand in stark contrast to calls for leniency and understanding which the Government had issued in the wake of largely white protests against COVID-19 restrictions on services like barbershops, salons, and spas,” the experts said.

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News Network
April 30,2020

Los Angeles, Apr 30: Los Angeles will begin offering coronavirus">coronavirus testing for free to all citizens regardless of whether they have symptoms, Mayor Eric Garcetti said on Wednesday, adding that LA is the first major US city to take such an initiative.

During the press conference, Garcetti announced that all county residents can now get free coronavirus">coronavirus testing. 

He said the announcement will only apply to city residents for now, but that a similar plan is in development for Los Angeles County,
Garcetti also took to Twitter to announce the same. "Announcing that L.A. is now the first major city in America to offer free COVID-19 testing to all residents. 

While priority will still be given to those with symptoms, individuals without symptoms can also be tested. Sign up at Coronavirus.LACity.org/Testing," he said
Under the new guidelines, priority for the same- or next-day testing will still be given to people with symptoms, such as a fever, cough, and shortness of breath. The free testing will also be prioritized for certain critical frontline workers who interact with the public.

Until now, only residents with symptoms as well as essential workers and those in institutional settings like nursing homes could be tested.

On Wednesday, the LA County reported 1,541 new cases, bringing the total to 22,485 - a seven per cent increase since yesterday.

This includes a backlog of cases that were processed. In the city, there were 683 new cases on Wednesday, bringing the total to 10,380 -- a 7 percent increase since yesterday.

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News Network
May 6,2020

Washington, May 6: At a time when the coronavirus pandemic has squeezed them, multi-national companies in America are laying off workers while paying cash dividends to their shareholders. Thus making the workers bear the brunt of the sacrifices while the shareholders continue to collect.

The Washington Post said in one of its reports that five big American companies have paid a combined USD 700 million to shareholders while cutting jobs, closing plants and leaving thousands of their workers filing for unemployment benefits.

Since the pandemic was declared an emergency, Caterpillar has suspended operations at two plants and a foundry, Levi Strauss has closed stores, and toolmaker Stanley Black & Decker has been planning layoffs and furloughs.

Steelcase, an office furniture manufacturer, and World Wrestling Entertainment have also shed employees.

Executives of those companies told the Post that the layoffs support the long-term health of their companies, and often the executives are giving up a piece of their salaries. Furloughed workers can apply for unemployment benefits.

But distributing millions of dollars to shareholders while leaving many workers without a paycheck is unfair, critics argue, and belies the repeated statements from executives about their concern for employees' welfare during the coronavirus crisis.

Caterpillar, for example, announced a USD 500 million distribution to shareholders April 8, about two weeks after indicating that operations at some plants would stop. The company however declined to divulge how many workers are affected.

"We are taking a variety of actions globally, but we aren't going to discuss the number of impacted people," spokeswoman of the company, Kate Kenny, said in a reply to an email by the Post.

This spate of dividends is also likely to revive long-standing debates about economic rewards.

"There are no hard-and-fast rules about this," said Amy Borrus, deputy director of the Council of Institutional Investors, a group that argues for shareholder rights and represents pension funds and other long-term investors.

Many large US companies choose to issue a regular, quarterly dividend to shareholders, often increasing it, and they boast about these payments because they help keep the share price higher than it might otherwise be. Those companies might be reluctant to announce that they are cutting or suspending their dividend during a crisis, Borrus was further quoted as saying.

But "companies have to be mindful of the optics of paying dividends if they're laying off thousands of workers," she added.

On March 26, Caterpillar had announced that because of the pandemic, it was "temporarily suspending operations at certain facilities." Two plants, in East Peoria, Ill., and Lafayette, Ind., were coming to a halt, as well as a foundry in Mapleton, Ill., according to news reports.

"We are taking a variety of actions at our global facilities to reduce production due to weaker customer demand, potential supply constraints and the spread of the covid-19 pandemic and related government actions," Kenny said via email.

"These actions include temporary facility shutdowns, indefinite or temporary layoffs," she added.

Similarly, Levi Strauss announced April 7 that the company would stop paying store workers, and about 4,000 are now on furlough. On the same day, the company announced that it was returning USD 32 million to shareholders.

"As this human and economic tragedy unfolds globally over the coming months, we are taking swift and decisive action that will ensure we remain a winner in our industry," Chip Bergh, president and chief executive of the company, also told the Post.

Stanley Black & Decker announced on April 2 that it was planning furloughs and layoffs because of the pandemic. Two weeks later, it issued a dividend to shareholders of about USD 106 million.

The notion that a company's primary purpose is to serve shareholders gained prominence in the 1980s but has come under attack in recent years, even from business executives, the newspaper reported.

Corporate decisions to suspend dividends and buybacks are complex, however, and it is difficult to know whether these suspensions of dividend and buyback programs were motivated by a desire to conserve cash in anticipation of bad times, and how much they are prompted by a sense of obligation to employees.

Over recent decades, the mandate to "maximize shareholder value" has become orthodoxy, for many, and it is often unclear what motivates companies to pare dividends or buybacks for shareholders, said William Lazonick, an emeritus economics professor at the University of Massachusetts at Lowell, who has been one of the leading critics of companies that distribute cash to shareholders through stock buybacks and dividends rather than reinvesting the profits into employees, innovation and production.

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