ARTICLE
11 August 2016

H-1B Employer Found Liable For Substantial Back Wages After Failing To Notify USCIS Of Termination

KL
Herbert Smith Freehills Kramer LLP

Contributor

Herbert Smith Freehills Kramer is a world-leading global law firm, where our ambition is to help you achieve your goals. Exceptional client service and the pursuit of excellence are at our core. We invest in and care about our client relationships, which is why so many are longstanding. We enjoy breaking new ground, as we have for over 170 years. As a fully integrated transatlantic and transpacific firm, we are where you need us to be. Our footprint is extensive and committed across the world’s largest markets, key financial centres and major growth hubs. At our best tackling complexity and navigating change, we work alongside you on demanding litigation, exacting regulatory work and complex public and private market transactions. We are recognised as leading in these areas. We are immersed in the sectors and challenges that impact you. We are recognised as standing apart in energy, infrastructure and resources. And we’re focused on areas of growth that affect every business across the world.
As we have advised in the past, a bona fide termination of an H-1B employee by an employer only occurs when the employer does all of the following: (1) gives notice of termination to the H-1B worker...
United States Employment and HR
Herbert Smith Freehills Kramer LLP are most popular:
  • within Employment and HR, Environment and Coronavirus (COVID-19) topic(s)
  • in United States

As we have advised in the past, a bona fide termination of an H-1B employee by an employer only occurs when the employer does all of the following: (1) gives notice of termination to the H-1B worker; (2) notifies U.S. Citizenship and Immigration Services (UCSIS) of the termination; (3) withdraws the underlying Department of Labor (DOL) Labor Condition Application; and (4) offers to provide the H-1B worker payment for transportation home. In a case published late last month, the U.S. Department of Labor's Office of Administrative Law Judges (OALJ) reminded us how important it is for employers to adhere to these steps. The employee in the case, who held H-1B status valid for a three-year period, was fired by his H-1B employer only two months into his authorized three-year stay. The employee subsequently claimed eligibility for back wages covering over two and a half years of time (from his time of firing until his time of departure from the U.S.), arguing that the employer's failure to notify the immigration authorities of the termination, coupled with its failure to offer to pay return transportation costs, constituted a failure to effect a bona fide termination. OALJ agreed with the employee, and ordered the employer to pay its former H-1B employee nearly $183,000 in back wages, plus interest.

This recent case reminds us that it is absolutely critical to follow the USCIS and DOL bona fide termination requirements following termination of an H-1B employee. Please do not hesitate to contact us if you have any questions about these requirements.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More