Business Daily from THE HINDU group of publications
Friday, Apr 03, 2009
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Business Daily from THE HINDU group of publications Friday, Apr 03, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Info-Tech
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Human Resources Cognizant to pay $5,09,000 as back wages to 67 employees Our Bureau Mumbai, April 2 The US Department of Labour has asked IT services major Cognizant Technology Solutions to pay $5,09,000 as back-wages to 67 employees who went to the US on H-1B visa. Based on its review of Cognizant`s labour condition applications between 2001 and 2008, the Department found that the IT outsourcer did not comply with the provisions of the H1-B visa programme as it did not pay some visa holders at the same rates as US workers in the same position. A spokesperson for the Nasdaq-listed company said that the company is immediately paying back wages to these individuals. “Cognizant believes that these 67 individuals were already paid at or above the required wage, but to avoid any doubt, we are immediately paying back wages to them. Communication to that effect has been sent to the associates concerned,” the spokesperson said in an e-mail statement. Mr Joseph Petrecca, Director of the Wage and Hour Division’s Northern New Jersey District Office, said in the Department of Labour press release: “This level of cooperation (by Cognizant) sets a standard for others in the industry.” During the eight years in question, Cognizant had over 40,000 employees at its US subsidiary, the company said. Such investigations by the Department of Labour are common in the IT industry, as the Federal Government looks to ensure that the H-1B program is implemented with ‘strict adherence to both the letter and spirit of the law,” Cognizant said. Trade magazine Computerworld recently reported that Cognizant received 467 new H1-B visas last year alone. More Stories on : Human Resources | Software
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