Respondent
paid Accountants Overload for the Alien's services. Seymour testified that after the Alien's temporary
employment with Accountants Overload ended, Respondent permitted the Alien to use its office,
telephone and computer to search for further employment. The Alien's search was unsuccessful, and
he asked Seymour to assist him with his visa immigration by signing the LCA. According to Seymour's
testimony, the LCA was prepared by one Nicholas A. Petty, an immigration attorney hired by the
Alien, but with whom Respondent never had any contact. (Tr. 32) "Never met the guy. Never
spoken with the guy." (Tr. 45) Seymour also testified that the newspaper advertisement for the
position of Oracle Programmer/Financial Analyst at Seymour Electric Inc. was not placed by
Respondent. Seymour first saw the ad when it was shown to him by the Wage and Hour investigator
who investigated the Alien's complaint.
Seymour's testimony is credited over that of the Alien as the Alien's testimony is
replete with contradictions. The Alien testified that he never heard of Accountants Overload, the
employment agency that, according to Seymour's testimony, placed the Alien with the Respondent.
However, a statement from Overload confirms that it placed the Alien with Respondent in November,
1996. The LCA was prepared by Nicholas Petty, an immigration attorney. Seymour testified that he
has never met Petty. Alien initially testified that Petty was not his attorney and that he did not know
Petty personally, (Tr. 38, 39) but later acknowledged that Petty did file an LCA petition for him with
the Department of Labor, albeit, for a different employer. (Tr. 48, 49)
Alien's testimony regarding the work for which he was hired is internally
inconsistent as well as being inconsistent with Seymour's testimony. Alien initially testified that he was
hired as a professional programmer, but that Respondent could not get him on any project and as a
result terminated his employment. (Tr. 7) Alien subsequently testified that he did do programming for
the Respondent, in that he designed a data base for Respondent for "contractor's
estimation" using the Oracle program. (Tr. 42) However, in response to Seymour's testimony
that Respondent does not have Oracle, and in fact, Seymour doesn't know what it is, the Alien testified
that he did not design the program at Respondent's office but on his computer at home. (Tr. 58, 59)
Seymour, testified that he never would have hired the Alien as a programmer since Respondent had no
need for a programmer. (Tr. 34, 56) Thus, the sum of the Alien's testimony regarding being hired as a
[Page 4]
programmer is that Respondent filed an LCA for a programmer, and hired the Alien as a programmer,
but that the only programming he performed was to set up a contractor's estimation program by use of
his home computer. Alien's account is simply unbelievable, particularly in light of Seymour's testimony
that his income as owner of the company was only $50,000 in 1997 and he could not afford a
programmer for whom he had no work at a salary of $41,000.
Conclusions of Law
Respondent argues that this claim by the Alien is barred by the doctrine of
res judicata . The Alien previously filed a claim with the Department of Industrial Relations,
Division of Labor Standards for the State of California requesting the payment of purported unpaid
wages from the Respondent from November 18, 1996 to October 31, 1997. In a decision dated
December 8, 1998 after a hearing in which the Respondent failed to appear, the Labor Commissioner
entered an award in favor of the Alien. The Commissioner based his decision on §§ 201,
202 and 203 of the California Labor Code which provides generally that whether an employee is
discharged or willfully leaves employment, all unpaid wages are due and payable. Respondent filed an
appeal with the Orange County Superior Court who issued a Memorandum of Decision in favor of
Respondent. The Alien's appeal therefrom was dismissed as being in default. Respondent argues that
since the Alien's case was dismissed by the Orange County Superior Court, the Alien cannot "try
yet another forum for his meritless claim." Respondent asserts that the case before Orange
County Superior Court and the present case are between the same parties and involve the same claim.
The doctrine of res judicata bars a litigant from re-litigating a claim
when (1) the former action was decided on the merits; (2) the matter contested in the second action
was or could have been decided in the first; and (3) the two actions are between the same parties or
their privies. Ozark v. Kais , 184 Mich. App. 302 (1990); Admiral Merchants Motor
Freight, Inc. v. Dep't of Labor , 149 Mich. App. 344, 350; (1986). Westwood Chem. Co.
v. Kulick , 656 F-2d 1224, (6th Cir. 1981). "It bars re-litigation on every issue actually
litigated or which could have been raised with respect to that claim" Westwood , 656 F.
2d at 1227. "To constitute a bar there must be an identity of the causes of action--that is, an
identity of the facts creating the right of action and of the evidence necessary to sustain each
action." Id . "A cause of action consists of a core of operative facts that give rise to
a remedy, (citing cases)." Ray v. Tennessee Valley Authority , 667, F.2d 818, 821
(11th Cir. 1982), cert. denied, 459 U.S. 1147 (1983): "The principal test for determining
whether the causes of action are the same is whether the primary right and duty or wrong are the same
in each case."; "Wickham Contracting Co. v. Board of Education , 715 F.2d
21 (2d Cir. 1983); Restatement (Second) of Judgments §§ 24 (1980).
Here, the parties are the same but the issues litigated are not. The Orange
County Superior Court defined the issue as the interpretation of an oral agreement between the parties.
The Court based its decision entering judgement in favor of the Respondent on its finding that the Alien
failed to meet his burden of proving the terms of the oral employment contract. Interestingly, the Court
considered the LCA filed with the Department by Respondent but found it only to be evidence of the
terms of an oral employment contract. The Court held that the LCA was not intended to
"essentially memorialize the terms of the agreement between Plaintiff and Defendant." The
[Page 5]
issue here does not involve breach of an employment contract but rather the requirements of
Department regulations governing H-1B visas and sanctions for noncompliance therewith. An
employer is required to comply with the terms and conditions set forth in an LCA notwithstanding any
side agreement he might have with the nonimmigrant alien employee. The alien's present claim is not
precluded by the doctrine of res judicata .
Nevertheless, it is determined that the Alien is not entitled to the relief provided
for under § 655.810, that is, back wages equal to the difference between the amount set forth in
the LCA and the amount actually paid by Seymour. The purposes of the H1-B visa program would be
defeated by an order requiring back pay to the Alien. The program permits nonimmigrant aliens to fill,
on a temporary basis, those specialty occupations for which there are a lack of qualified U.S. workers
available. 20 C.F.R. § 655.0 The requirement that the H1-B employer pay prevailing wages is
intended to protect the jobs and wages of American workers, See National Association of
Manufacturers v. United States Department of Labor , 1996 WL 420868 (D.D.C.). The
provision allowing an alien to file a complaint for back wages if he is paid less than the LCA wages is to
protect the prevailing wage requirement and to compensate the victim of wrongdoing. Here, the Alien
is not a victim. Respondent and the Alien conspired to file the documentation necessary to allow the
Alien to gain an H-1B visa. Respondent, the H1-B employer, never intended to locate and hire a
nonimmigrant Alien into a specialty occupation. There was no intent to hire a programmer. Seymour
testified that he had no need of a programmer, and the Alien's testimony that he did some programming
work for Seymour on an at home computer is simply not believable. Moreover, the Alien is not a
victim but the wrongdoer. The position of programmer was concocted by the Alien for the sole
purpose of obtaining an H-1B visa. The Alien can not seek vindication under the Act for an asserted
injury caused by his own malfeasance. In Cenco Incorporated v. Seidman & Seidman , 686
F.2d 449 (7th Cir. 1982) the Court held that a participant in a fraud cannot also be a victim entitled to
recover damages, for he cannot have relied on the truth of the fraudulent representations, and such
reliance is an essential element in the case of fraud. 686 F. 2d at 455. To allow the Alien to gain a
benefit from his wrongdoing would be perverse and contrary to the purpose of the Act. In
Noriega-Perez v. United States of America , 179 F. 3d 1165 (9th Cir. 1999) the Court
noted that the purpose of § 1324c of the Immigration and Naturalization Act, which assesses
civil penalties and reimburses the government for enforcement expenditures, is to ensure that persons
committing fraud do not profit from their acts.
Moreover, an alien should not be able to sustain a claim for payment of the
prevailing wages set forth in the LCA if the alien's H-1B visa, which is the reason for the existence of
the LCA, was procured by fraud. See, for example, Mwongera v. Immigration and
Naturalization Service , 187 F.3d 323 (3rd Cir. 1999), wherein the Court of Appeals for the Third
Circuit sustained the Board of Immigration Appeals' finding that where an alien engaged in
willful misrepresentation of material facts in his B-1 visa application, the B-1 visa must be considered to
be invalid as procured by fraud. See also United States v. Lindert , 907 F. Supp. 1114
(N.D. Ohio 1995), where the Court interpreted 8 U.S.C. § 1101(f)(6) as requiring that if a
court finds that a defendant gave false testimony for the purpose of obtaining immigration benefits or
citizenship, it must find that the defendant procured the citizenship illegally and revoke the defendant's
citizenship.
[Page 6]
Accordingly, the Alien's action in this case, conspiring with Respondent to submit
an application for labor certification which misrepresents the employer's need for the specialty
occupation in order to procure an H-1B visa for the Alien, precludes the Alien's claim for relief under
§ 655, that is, payment of the wages set forth in the LCA.
ORDER
In consideration of the above, IT IS HEREBY ORDERED THAT:
1) The complaint by Ravishanker Balakrishna asserting that he be compensated
for back wages because he was not paid the wage rate by Respondent, Seymour Electric Inc.,
required by a Labor Condition Application ("LCA"} and 20 C.F.R. § 655.731 is
denied; and
2) This matter is forwarded to the Immigration and Naturalization Service for
appropriate disposition in light of the action of Ravishanker Balakrishna and Seymour Electric Inc. in
this matter.
THOMAS M. BURKE
Associate Chief Judge
Washington, D.C.
[ENDNOTES]
1 Page 3 of Prosecuting Party Exhibit 1.
2 Page 3 of Prosecuting Party Exhibit
1.
3 See Exhibit 12 to Respondent's
Closing Brief which is a Job Order Description attached to subpoena served on Accounts Overload