Wage and Hour Division (WHD)

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ISELIN, N.J. -- An administrative law judge from the U.S. Department of Labor has found Technologies500 Holdings and Edu. Inc., formerly doing business as Cybersoftec.com Inc., and its president, Nick Mandalapa, in violation of the Immigration and Nationality Act and ordered them to pay $537,189 in back wages to 36 foreign workers hired as computer programmers under the act’s H-1B visa program.

“Abuse of the H-1B visa program undermines its integrity and goal of protecting wage standards for U.S. workers,” said Dominick Denato, district director of the Wage and Hour Division’s Southern New Jersey District Office. “This case reflects how aggressively the Labor Department will pursue companies that violate this program.”

An investigation conducted by the department’s Wage and Hour Division found that from January 2004 through November 2005, the company and Mandalapa willfully failed to pay required wages to the workers, required or accepted payment from six H-1B workers for fees incurred in filing H-1B petitions, and failed to maintain required records.

In addition to paying the back wages, the company and Mandalapa were ordered to pay $162,750 in civil money penalties and are disqualified from filing any H-1B worker petitions for two years.

In June 2006, Mandalapa pled guilty to one count of immigration fraud. On January 22, 2007, Mandalapa was sentenced to 20 months in federal prison and fined $25,000.

The H-1B visa program permits employers to temporarily hire foreign workers to fill specialized jobs in the United States. Employers must pay H-1B workers at least the same wage as other employees who perform the same type of work or the prevailing wage in the area. The law also requires companies to accurately specify the terms and conditions under which the workers will be employed.

Information about the H-1B visa program’s worker protection provision may be obtained by calling the Department of Labor’s toll-free helpline at (866) 4USWAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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