In a recent decision, the United States Court of Appeals, Sixth Circuit, affirmed the penalties imposed by the Department of Labor against a physician employer. The case began more than twelve years ago when ten H-1b physicians filed a complaint with Department of Labor against their employer for failure to pay the H-1b wages. The Department of Labor investigated the matter in 2001 and determined that the physician employer and his medical clinics had violated various immigration provisions including failing to pay the required wage, failing to maintain public inspection files on the H-1b’s, failing to maintain payroll records, and retaliating in terminating the physicians after they filed a complaint with the Department of Labor. The Administrative Law Judge agreed with the Department of Labor, ordering the physician employer to pay back wages, H-1b costs and J-1 costs totaling more than $1 million and over $100,000 in civil penalties.

Through various appeals the case reached the US Court of Appeals. In the decision of Kutty v. U.S. Department of Labor, decided August 2014, the court agreed with the previous decisions in finding the physician employer liable. The case has been noteworthy because it’s the first time a physician employer has been found liable for J-1b waiver costs, which precede the filing of an H-1b.

For further insight on the case, refer to the Hammond Healthcare Advisory.