What H-1B Employers Need To Know About H-1B Audits
H-1B Audits are conducted by the Wage and Hour Division of the US Department of Labor (DOL) to find out whether an H-1B employer is in compliance with the existing H-1B laws and regulations. The Labor or H-1B Audit could arise from many sources, including but not limited to Employee Complaint, US Embassy Referral, or Random Audit.
With the increase in hiring of H-1B employees, the US Department of Labor wants to make sure the employer is complying with the rules and regulations of hiring foreign workers. If violations are found, the Administrator of the Department of Labor's Wage and Hour Division may assess civil money penalties with maximums ranging from $1,000 to $35,000 per violation, depending on the type and severity of the violation. The Administrator may also impose other remedies, including payment of back wages to employees. In most instances, the Employer will receive written notification approximately one week prior to the scheduled start of an H-1B Audit.
H-1B Audit Expectations & Etiquette:
In most instances, the Employer will receive written notification approximately one week prior to the scheduled start of an H-1B Audit. The notice will detail the name of the Investigator, the date s/he will begin the investigation, and request documents and information for review. An Employer undergoing an H-1B Audit should expect additional documents and information to be requested through the course of the investigation, and should be prepared to provide the materials in a timely fashion. Please be aware that there may be circumstances where no advance H-1B Audit notification will be provided to an Employer.
There is an expectation of voluntary compliance with an H-1B Audit, and it will behoove the Employer to proactively take any steps required to comply with all requests. It is important that an Employer engage legal counsel to ensure appropriate compliance.
There are several practical actions that any Employer facing an H-1B Audit should take, including:
(1) Inform all staff that they are to be courteous and professional with the Investigator;
(2) Designate an Audit Liaison, or 1 or 2 senior employees or an attorney, to be responsible for all contact and communication between the Employer and Investigator, and to facilitate compliance;
(3) Provide the Investigator a dedicated workspace;
(4) Provide the Investigator access to a copy machine; and
(5) Have legal counsel prepare any employee prior to a requested interview, and have counsel attend the interview.
Providing a comfortable environment for an Investigator to conduct the audit, as well as all requested materials in an organized and timely fashion, will help demonstrate an Employer's good-faith intention toward H-1B program compliance.
With the increase in hiring of H-1B employees, the US Department of Labor wants to make sure the employer is complying with the rules and regulations of hiring foreign workers. If violations are found, the Administrator of the Department of Labor's Wage and Hour Division may assess civil money penalties with maximums ranging from $1,000 to $35,000 per violation, depending on the type and severity of the violation. The Administrator may also impose other remedies, including payment of back wages to employees. In most instances, the Employer will receive written notification approximately one week prior to the scheduled start of an H-1B Audit.
H-1B Audit Expectations & Etiquette:
In most instances, the Employer will receive written notification approximately one week prior to the scheduled start of an H-1B Audit. The notice will detail the name of the Investigator, the date s/he will begin the investigation, and request documents and information for review. An Employer undergoing an H-1B Audit should expect additional documents and information to be requested through the course of the investigation, and should be prepared to provide the materials in a timely fashion. Please be aware that there may be circumstances where no advance H-1B Audit notification will be provided to an Employer.
There is an expectation of voluntary compliance with an H-1B Audit, and it will behoove the Employer to proactively take any steps required to comply with all requests. It is important that an Employer engage legal counsel to ensure appropriate compliance.
There are several practical actions that any Employer facing an H-1B Audit should take, including:
(1) Inform all staff that they are to be courteous and professional with the Investigator;
(2) Designate an Audit Liaison, or 1 or 2 senior employees or an attorney, to be responsible for all contact and communication between the Employer and Investigator, and to facilitate compliance;
(3) Provide the Investigator a dedicated workspace;
(4) Provide the Investigator access to a copy machine; and
(5) Have legal counsel prepare any employee prior to a requested interview, and have counsel attend the interview.
Providing a comfortable environment for an Investigator to conduct the audit, as well as all requested materials in an organized and timely fashion, will help demonstrate an Employer's good-faith intention toward H-1B program compliance.
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