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Cognizant to pay $5,09,000 as back wages to 67 employees
By siliconindia
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Friday, 03 April 2009, 21:35 IST |
11 Comments
Mumbai: Over the remark of the U.S. department of Labor regarding the pay package, IT services major Cognizant Technology has decided to pay $5,09,000 as back wages to 67 employees who work in the country under H-1B visa. The department has found that Cognizant did not comply with the provisions of the H-1B visa program as it did not pay some visa holders at the same rates as U.S. workers in the same position, during the period 2001-2008.
Considering the Department of Labor's finding, Cognizant are taking steps to resolve the issue. "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," informed a company spokesperson.
Seeing such investigations quite common in the IT industry, Cognizant said that 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. The company deploys over 40,000 employees at its U.S. subsidiary.
In response, Joseph Petrecca, Director of the Wage and Hour Division's Northern New Jersey District Office said, "This level of cooperation by Cognizant sets a standard for others in the industry."