A recent ruling by an administrative law judge has brought attention to the importance of compliance with employment laws for small and midsize business owners.
A residential and commercial swimming pool company based in Illinois, has been ordered to pay $312,561 in back wages to 26 workers employed under the H-2B guest worker visa program. The ruling was made after the U.S. Department of Labor (DOL) found that the company failed to comply with program regulations.
Pool Company Failed to Comply With H-2B Guest Worker Visa Program
Judge Theodore Annos in Washington D.C., upheld the findings of the DOL’s Wage and Hour Division, affirming that the swimming pool company violated the H-2B guest worker visa program by failing to pay its workers for all hours worked plastering pools in Illinois, Indiana, Iowa, and Wisconsin between 2016 and 2017. The employer’s failure to adhere to the program regulations constituted a violation of the Immigration and Nationality Act.
In addition to the back wages owed, the judge also assessed $123,814 in penalties for the company’s violations and prohibited them from participating in the H-2B program for a year. The ruling serves as a reminder to businesses that the consequences of non-compliance with employment laws can be substantial, both in terms of financial penalties and reputational damage.
Wage and Hour Regional Administrator Michael Lazzeri in Chicago emphasized the significance of this case, stating, “Companies participating in non-immigrant visa programs agree to specific terms and conditions, but this employer shamelessly paid these H-2B workers less than the full hourly wages promised when they accepted the work.” Employers must fulfill their obligations under the program and ensure that workers are paid the wages they are entitled to by law.
The investigation conducted by the DOL’s Wage and Hour Division found several violations committed by the swimming pool company, including the failure to pay the offered wage, placing workers outside the stated area of employment, neglecting to cover workers’ inbound/outbound transportation and subsistence costs, not providing job order information in a language understood by employees (such as Spanish), prohibiting third-party travel agencies from charging fees to workers, and failing to comply with document retention requirements.
The H-2B non-immigrant program allows employers to hire temporary non-immigrant workers for non-agricultural labor or services in the United States. It is crucial for businesses participating in this program to understand and follow the program’s regulations to ensure fair treatment of workers and compliance with the law.
Small and midsize business owners should take note of this case as a reminder of the importance of proper compliance with employment laws. Non-compliance can result in significant financial penalties, damage to a company’s reputation, and potential legal consequences. It is essential to familiarize oneself with the requirements of any visa programs utilized and ensure proper payment of wages and adherence to all relevant regulations.
The Department of Labor’s Office of the Solicitor in Chicago litigated this case, underscoring the commitment of the DOL to enforce labor laws and protect the rights of workers. By prioritizing compliance, businesses can create a fair and respectful work environment while avoiding costly penalties and legal issues.
Conclusion
This case highlights the need for small and midsize business owners to stay informed about employment laws and regulations. Compliance is crucial to avoid penalties and protect the rights of workers.
Employers must prioritize fair treatment, proper payment of wages, and adherence to all relevant regulations to maintain a positive and legally compliant work environment. By doing so, businesses can safeguard their reputation, protect their workers, and contribute to a fair and thriving economy.