Cognizant to pay back wages to 67 staff

Cognizant to pay back wages to 67 staff

It would pay $5,09,000 as back-wages to 67 employees who went to the US on H-1B visa

Friday, April 03, 2009

MUMBAI, INDIA: The US Department of Labour recently 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, said a report from Business Line.

“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.

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.”

The company reports mentioned that during the eight years in question it had over 40,000 employees at its US subsidiary.

©CyberMedia News

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