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Businesses Crime Government The Almighty Buck

Tech Firm Fined For Paying Imported Workers $1.21 Per Hour 286

An anonymous reader sends in news about a company that was fined for flying in "about eight employees" from India to work 120-hour weeks for $1.21 per hour. Electronics for Imaging paid several employees from India as little as $1.21 an hour to help install computer systems at the company's Fremont headquarters, federal labor officials said Wednesday. "We are not going to tolerate this kind of behavior from employers," said Susana Blanco, district director of the U.S. Labor Department's wage and hour division in San Francisco.... An anonymous tip prompted the U.S. Department of Labor to investigate the case, which resulted in more than $40,000 in back wages paid to the eight employees and a fine of $3,500 for Electronics for Imaging.
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Tech Firm Fined For Paying Imported Workers $1.21 Per Hour

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  • $3500 fine? (Score:5, Insightful)

    by msobkow ( 48369 ) on Thursday October 23, 2014 @05:46PM (#48216637) Homepage Journal

    That's a joke. They should have been fined at least as much as the backwages were.

    • $3500 fine? (Score:5, Insightful)

      by Anonymous Coward on Thursday October 23, 2014 @05:53PM (#48216677)

      What do you expect, they have been doing this for over a decade with illegals.

      No one has the balls to go after the companies that make use of slave day labor.

      If you started fining companys every month a good chunk of money 5-10 grand, graduating 15,20,40 60 for frequent abusers things would change quick.

      Yes yes prices may go up, but as minimum wage advocates say, if you have to pay people more, they have more to spend.

      • Re:$3500 fine? (Score:5, Insightful)

        by Anonymous Coward on Thursday October 23, 2014 @06:06PM (#48216771)

        Yes yes prices may go up, but as minimum wage advocates say, if you have to pay people more, they have more to spend.

        A more sensible argument in favour of minimum wage is that if there isn't one, government assistance to low income earners are in practice a subsidy to companies that then don't have to pay a living wage.

      • Re:$3500 fine? (Score:5, Interesting)

        by tnk1 ( 899206 ) on Thursday October 23, 2014 @06:18PM (#48216871)

        I have to agree. If we have these laws, we need to enforce them.

        If that means that the costs of products go up because we aren't using illegal aliens as slave labor, then we need to see that cost and understand why that is the case.

        We think this is benefiting businesses primarily, but bear in mind, those who favor government programs and regulations to curry favor with progressives may be able to understate the economic effect of those items on the full economy by conveniently pointing to American productivity, but leaving out how much of that productivity is due to workers and businesses that evade those regulations.

        Remember, it is a win-win for regulation and business if you can pretend that you have laws you enforce for higher standard of living, but you collude with businesses to make sure that the economy is not harmed by actually applying OSHA rules, minimum wage and social security to *every worker*.

        I point this out, not to take the heat off of businesses. They are the ones who actually employ the illegal labor, and they are the primary people at fault. I'm trying to get to the heart of why the government is not enforcing these rules when it would be relatively simple for them to do so effectively. I think it is because no one wants to be up-front about why illegal workers are required to maintain our standard of living. No one wants to admit that we employ an underclass to maintain our citizens in comfort.

        • "We think this is benefiting businesses primarily" ... "I point this out, not to take the heat off of businesses."

          This is extra hilarious. Here we go again - just because we've created the construct of a corporation to make business activities easier, folks just can't seem to stop actually thinking of them as real people. They're not, and it's real people making the decisions to pay these wages, real people acting in the interest of the American consumer.

          Sorry, but the entire population of the USA is at fault. Businesses are simply social creations to help us conduct activities, and the people within them act in

          • You got things confused. Government is supposed to act in the interest of all citizens. Businesses act in the interest of their shareholders, not the typical consumer. Sometimes these interests align, and sometimes they don't.

      • "Yes yes prices may go up, but as minimum wage advocates say, if you have to pay people more, they have more to spend." Or companies would increase their R&D/capital spending on robotics/automation, and make even more aggressive moves to eliminate their minimum wage positions than they are already doing..... Population growth + automation will eventually make the economic model of "everyone must work to earn their own way" unnecessary and obsolete. I think we are fast approaching the point where we ne
        • Re:$3500 fine? (Score:5, Interesting)

          by worldthinker ( 536300 ) on Thursday October 23, 2014 @06:40PM (#48217013)

          Automation of jobs even professional level jobs such as medical or legal is inevitable. The long term prospect is that humans will be superfluous to work. Therefore, our society needs to rethink the purpose of an economy and evolve.

          Perhaps ideas like a Universal Basic Income become relevant in a future society devoid of meaningful work.

          Perhaps automation makes economic scarcity of essential needs a thing of the past.

          Perhaps people become free to seek their own happiness instead of toiling for sustenance.

          But that would be monstrously scary to objectivist who might think that society must exploit and privatize everything.

          • Re:$3500 fine? (Score:5, Insightful)

            by Anonymous Coward on Thursday October 23, 2014 @06:53PM (#48217085)

            Fuck the Objectivists. Their alleged philosophy is rejected by all but a tiny minority of serious academic thinkers as incomplete, idiotic, and unworkable in the real world.

            Hell, even Greenspan, who sat at the feet of the weird Ayn Rand, was forced to admit in front of congress that his philosophy doesn't work in the real world, and that was the end of any intellectual underpinnings for the whole anti-regulation, anti-humane, anti-altruism, tax-cuts-for-the-rich, trickle down crap.

            I repeat: Fuck the Objectivists and their amoral "Devil take the hindmost" attitudes.

          • . The long term prospect is that humans will be superfluous to work. Therefore, our society needs to rethink the purpose of an economy and evolve.

            No, society needs to rethink the purpose of creating so many humans.

          • Perhaps ideas like a Universal Basic Income become relevant in a future society devoid of meaningful work.

            The world will *always* need ditch diggers....

            • The world will *always* need ditch diggers....

              So sure of that, are you?

              We are approaching a time when the robots will do all that for us... Even the very basic work...

              • by Dahamma ( 304068 )

                No, we are approaching a time when the robots *can* do all that for us.

                The question is, will they be *cheaper*, which is really all that matters to those having their ditches dug. For $10 per hour, robots may become competitive, but for $1.21 per hour, pretty sure humans will be cheaper for quite a while...

      • Yes yes prices may go up, but as minimum wage advocates say, if you have to pay people more, they have more to spend.

        At 120 hours a week you don't have much time to spend any of that windfall, and by the time you do have time to go shopping you're spending it in India.

        • At 120 hours a week you don't have much time to spend any of that windfall, and by the time you do have time to go shopping you're spending it in India.

          There's not even enough time left to sleep, eat and shower - one ought be skeptical of the claims.

          • The sort of people who pay slave wages probably consider 6.8 hours of "free time" a day more than adequate for such self-catering needs as sustinance and rest. Don't wanna be too soft on 'em, ya know.

      • Minimum wage [youtube.com] exists because we don't currently have a free market. I'm assuming that people are too lazy to read the books, but highly recommend them.

    • Re:$3500 fine? (Score:5, Interesting)

      by Macman408 ( 1308925 ) on Thursday October 23, 2014 @06:15PM (#48216835)

      It's not clear to me that it was willful avoidance of paying minimum wage - they had a job to do, they got help from some of their existing employees from overseas, who continued to receive their regular wage (in their regular currency) during the time that they were here. So the company paid the back wages to the employees, and a small fine to the government. Doesn't seem unreasonable to give them a little slap on the wrist; save the big punishments for when there are repeated offenses, or more wanton abuse.

      I'm more curious what the legal requirement is for paying the local minimum wage instead of a worker's regular salary, when they are working away from their normal office. I certainly wouldn't want to be paid in rupees if I had to travel to an office in India. But if I were there under the same conditions as those workers were here, would there be any violation of US Labor Laws if they paid me the local wage while I was over there? On the other hand, if I go to a college recruiting event in San Francisco for an afternoon, am I entitled to an increased minimum wage of $10.74 for a few hours? What if I'm a driver, paid by the mile, going through different jurisdictions each with their own minimum wage law?

      • by rsilvergun ( 571051 ) on Thursday October 23, 2014 @06:40PM (#48217019)
        in other parts of the thread, if you don't fine someone several times the profit made from the illegal activity and you don't put them in jail then they will continue to do the activity. I doubt they lost money on the deal, so why stop?

        Also, the damage wasn't limited to the employees. Everyone in tech (which is most of /.) lost wages when the prevailing wage for tech workers was depressed as a result of this behavior.
        • I think that's where the determination of willful violation versus accidental can make a difference. Sure, if they knew they were violating the law and did it anyway, then they absolutely deserve a bigger punishment. If it's just a case where they didn't really consider the implications of bringing foreign employees to their US office, a small penalty isn't unreasonable. If they weren't willfully violating the law, they're more likely to follow it for its own sake, rather than due to a financial threat.

      • Re:$3500 fine? (Score:5, Interesting)

        by whoever57 ( 658626 ) on Thursday October 23, 2014 @06:41PM (#48217023) Journal

        It's not clear to me that it was willful avoidance of paying minimum wage - they had a job to do, they got help from some of their existing employees from overseas, who continued to receive their regular wage (in their regular currency) during the time that they were here

        It's almost certainly a violation of immigration law. I assume that these people came to Fremont on visitor visas that don't allow the visa holder to "work". Even if the foreign workers were here on H1s or L1s (which I doubt), they would have been violating the salary requirements for that type of visa.

        • It's not clear to me that it was willful avoidance of paying minimum wage - they had a job to do, they got help from some of their existing employees from overseas, who continued to receive their regular wage (in their regular currency) during the time that they were here

          It's almost certainly a violation of immigration law. I assume that these people came to Fremont on visitor visas that don't allow the visa holder to "work". Even if the foreign workers were here on H1s or L1s (which I doubt), they would have been violating the salary requirements for that type of visa.

          My understanding from someone familiar with the case is that they were in the U.S. on L1-B visas that had been legally applied for; it's common practice for companies like IBM to pay their existing wage plus a per diem when they send someone to India to train people there, or to otherwise resolve issues in the foreign country.

          From what I've been told, this is a misunderstanding on the part of EFI with regard to equivalence between the labor laws that apply in the other direction, and the labor laws that app

        • Re:$3500 fine? (Score:4, Interesting)

          by Dahamma ( 304068 ) on Friday October 24, 2014 @01:04AM (#48218687)

          Jeez, mods, way too much speculation (much of which is wrong) to be a "+5" post...

          First, it was in fact L1 visas for short term inter-company work.

          The real problem was that EFI paid their Indian employees their existing wages (plus boarding, per diem, and bonuses) while they were in the US. Since US employment law states otherwise, yes, they screwed up, and it's good that they were forced to pay them more. But it's bullshit to call this "slave labor", etc, because of the wage since these employees went back to India with the same wage they were already getting (and no food/lodging costs during that time).

          On the other hand, what *is* disturbing is the claims that they worked 120+ hours a week while in the US. I'm almost skeptical of that number as that is literally less than 7 hours a day off the job which isn't enough time for a good night's sleep - but even more or less forcing 100+ hours for an hourly employee, working in a foreign country with likely little say over their duties or conditions seems borderline criminal to me...

      • At the very least I'm glad they closed this potential loophole before it opened, otherwise the vast majority of US workers would be fired and re-hired by wholly-owned foreign subsidiaries within weeks. "Sorry suckers, you're in Cambodia now! For legal purposes at least! Hahahahahah!!!"
      • the answer to you last question is yes. If weed is legal in Colorado and I drive from there the Washington state (which also has legal weed) with weed in my car, can I be arrested in states where it is not legal?

        If local laws have no value then they have no meaning. If you are a paid driver going through a jurisdiction that requires a minimum wage you are circumspect to that law. Otherwise you are unfairly competing with local drivers that are compliant with the law.

        The same can be said for internati

    • Re:$3500 fine? (Score:4, Insightful)

      by AK Marc ( 707885 ) on Thursday October 23, 2014 @06:15PM (#48216849)
      They should have been fined 10x the "market wage" for the job, with half going to the workers, and half going to the local unemployment office.
      • Re: $3500 fine? (Score:4, Informative)

        by tysonedwards ( 969693 ) on Thursday October 23, 2014 @06:51PM (#48217077)
        Further, the "wage" payments were just the differences between their dollar and change an hour rate and minimum wage for technical work that would require a skilled employee. So, even that is a slap on the wrist. And there was no concept of "time and a half" or whatever else for the mandatory 120hr week slave conditions for these employees. As such, the lesson taught was very much a "just don't get caught next time" one.
        • ..... . As such, the lesson taught was very much a "just don't get caught next time" one.

          Who even cares about getting caught... They still got skilled technical work done at <10% above the local minimum wage. No matter how you spin it, it was still a massive deal.

        • by Livius ( 318358 )

          So, even that is a slap on the wrist.

          It's *entirely* a slap on the wrist.

          Their crime was being so over the top that they would inevitably bring scrutiny on the cartel as a whole, forcing the government to make a credible response, and no-one wants that. (Well, no-one except those actually working for their income.)

    • by PRMan ( 959735 )

      The entire $40,156 in back wages was distributed directly to the eight affected workers.

      The fine was on top of the back wages.

      • ...which they would have spent anyway had they chosen not to break the law.

      • Let's look at the expected gain/loss. Assume that x is the probability that the company gets caught. That means there is an x probability of being down by $3500, and a (1-x) probability of being up by $40k. The break-even point occurs when x=0.08. That means that if this behavior is repeated over and over, we need to catch them at it at least 92% of the time for it to not be financially viable, giving these penalties.

        This is the entire purpose of punitive damages. It is impossible to catch someone ev
    • Re: (Score:2, Insightful)

      by whoever57 ( 658626 )

      That's a joke. They should have been fined at least as much as the backwages were.

      And no more visas of any kind for this company. No H1s, no L1s, no B1/B2s, etc.. In this case, the company appears to have been misusing B1/B2 visas (visitors).

    • Re:$3500 fine? (Score:5, Interesting)

      by c ( 8461 ) <beauregardcp@gmail.com> on Thursday October 23, 2014 @06:51PM (#48217071)

      That's a joke. They should have been fined at least as much as the backwages were.

      That's still peanuts.

      If you really wanted to send a message, they should be required to pay for an external auditor of the governments choice to come in and perform a top-to-bottom audit on all employee and contractor compensation.

      And then get fined for anything fishy.

    • You need to make the fine so painful that it does not become simply a "cost to do business" but rather a shattering experience which brings your firm to take such laws & rules seriously.

      Frankly a fine which is less than 1/10 of the backwage, and no prison.... You can be sure as hell that the lessons taught is "try again folks : if you are not caught , you spare ten of tousands of quids, and if you are caught, Baah, no chip off your shoulder, you only pay 8% fine over the amount you tried to leech". Wh
    • That's a joke. They should have been fined at least as much as the backwages were.

      Why keep it civil? Seems only fair for whoever came up with this plan to spend some time stamping out license plates for Uncle Sam.

    • An anonymous tip prompted the U.S. Department of Labor to investigate the case, which resulted in more than $40,000 in back wages paid to the eight employees and a fine of $3,500 for Electronics for Imaging.

      In this case, should not the HR people and management be facing criminal charges for slavery? Forcing people to work 120hr work weeks and paying them an illegally low wage strikes me as something that should be sitting on a prosecutors desk. IANAL, but I'd be interested in hearing from one. A 120hr work week is an 18 hour day 7 days a week.

    • Jeez, that fine is gonna hurt!
  • by random coward ( 527722 ) on Thursday October 23, 2014 @05:47PM (#48216641)
    Assuming they get caught half the time this is a huge cost savings and they continue.
  • What 3500$? (Score:5, Insightful)

    by 140Mandak262Jamuna ( 970587 ) on Thursday October 23, 2014 @05:48PM (#48216657) Journal
    3500$ per hour of stolen wages? per week? per employee? what the hell is wrong with our system? This is a slap in the wrist, and a clear permission to employers to violate all labor standards. They CEO's lunch tab could be more than this...
    • Re: (Score:3, Insightful)

      by Anonymous Coward

      this doesn't even qualify as a slap on the wrist; more like a fart in their general direction

    • It's not entirely unusual. Many regions have exemptions in their labour laws to deal with workers that are only in the jurisdiction temporarily, usually to perform short-term contract work.

      Imagine if the roles were reversed. An American company sends a couple of technicians to India to fix some machinery and tries to pay them minimum wage in Indian Rupees rather than American Dollars.

      It's obvious that there was some sort of abusive employer-employee relationship (eight employees working up to 122 hours a we

      • It's one thing if you bring someone in for a few days (say 5 or less) but that was stretching things to the breaking point..

        • If the same company sends US workers to India, will the workers accept India-level wages? How come this only works one way?

    • and these policies benefit them. Workers are at each other's throats. Blue collar guys blame white collar guys for not protecting their jobs when manufacturing went away in the 80s. White collar guys are isolated and convinced they should be able to make it on their own. Meanwhile the rich pick us off like ants. It's gotten to the point where Union is a bad word. The AMA? The Bar? Unions by any other name. But run by rich guys that know better than to associate with the riff-raff they want to screw...
    • Re:What 3500$? (Score:4, Insightful)

      by hey! ( 33014 ) on Friday October 24, 2014 @01:35AM (#48218813) Homepage Journal

      What's wrong with our system is that corporate shills call anyone who suggests any restraint on corporate behavior a "socialist", and enough people are scared that only bloodless corporate tools can get elected.

      We vote like a bunch of pussies, and we get the government we deserve.

  • by Anonymous Coward on Thursday October 23, 2014 @05:50PM (#48216661)

    They can just do this and then they save millions in labor costs and healthcare...

  • fwd.us! (Score:5, Insightful)

    by Midnight_Falcon ( 2432802 ) on Thursday October 23, 2014 @05:50PM (#48216665)

    The real reason tech companies want more H1B Visas is clear: So they can exploit foreign workers in a mix between the days of indentured servitude and the company towns of the Industrial Revolution. Too much education and culture has gone into making Americans averse to such exploitation; but companies manage to sponsor employees and get away with paying them a pittance under this system. It's the closest thing to chattel slavery still legally viable.

    Then, when it gets found out, the company pays a slap-on-the-wrist order a fine....almost nothing compared to fines for sexual harassment or other torts that might affect Americans.

  • by dirk ( 87083 ) <dirk@one.net> on Thursday October 23, 2014 @05:52PM (#48216675) Homepage

    The reason companies keep doing this stuff is that they have deemed it cost effective. Let's assume they get caught 90% of the time. That means that would have to pay $31500 in fines for the 9 times they were caught and would save $40000 for the time they didn't. They are coming out ahead so the fine are just a cost of doing business. These tiny little fines are not going to stop things like this from happening. At minimum, the fine should be the same amount they would have "saved"(preferably more). At best, we should start putting people in jail for breaking the law just like we do regular people who break the law.

    • Re: (Score:2, Informative)

      by Anonymous Coward

      That's the thing -- they WERE fined the amount they were "saved" -- if the imported workers were being paid minimum wage. Domestic workers doing the same job would have wanted considerably more for the job. Without any escalating penalty for repeat offenders or changes in the penalty structure, it's going to become a cottage industry to just continue to do this and eat the fines. Worst case, you're paying minimum wage for skilled labor.

    • by MrKaos ( 858439 )

      At minimum, the fine should be the same amount they would have "saved"(preferably more). At best, we should start putting people in jail for breaking the law just like we do regular people who break the law.

      It is "Justice" "seen" to be done.

      In reality the penalty should be so severe that no sane employer would expose them selves to that sort of risk. Currently it is like the "slap" in slap and tickle, a little exciting if you get caught and rewarding if you don't. Unfortunately because unions are unpopular in the tech industry there is no organization powerful enough to lobby the congresscritters for law reform as the tech industry settles more and more into mainstream and sleazier employers enter the market.

    • by godrik ( 1287354 )

      I am not too familiar with US laws and regulations. But I assume that if the same company get caught twice or if DoL start catching one company like that every week, then the fines will become higher.

    • Jail time for the manager who made this decision. Even it if it's just a lower echelon peon who is punished (at first). It won't take long before the peons either refuse to take the blame or refuse to follow the order. On the other hand, I am not sure what exactly "install computer system" entails, but if it involves clicking next a lot then they could have hired college students.
      Wait let me break with tradition and actually go RTFA
      Meh, doesn't say, but it does say they would not be able to legally pay
    • You are incorrect.

      The workers they brought over were not allowed to work in the US. If they had been on H1Bs, they would have to have been paid competitive rates for skilled workers (you can't bring over H1Bs unless they have skills you can't find enough of in the US) so they must be worth $20 an hour at least. If the workers had had real work visas they could have gotten low skill jobs which paid a bit more than minimum wage and would have gotten overtime, would have had some rights, could have negotiate

  • So the company still got their computers installed by paying minimum wage, and also bought a nice laptop for some U.S government employee.

    Sounds like they got a bargain.

  • by techdolphin ( 1263510 ) on Thursday October 23, 2014 @06:05PM (#48216765)

    I would make the fine at least triple the back wages owed, 120,000 plus the back wages. We should also throw the executives in jail. If anybody stole $40,000 they would face serious jail time. I do not see this as being different from stealing.

    • by UnderCoverPenguin ( 1001627 ) on Thursday October 23, 2014 @06:37PM (#48216983)

      Jailing the executives would probably be the only effective strategy. Any fines just get passed along to customers - and the companies likely have ways to deduct the amount of the fines on their tax returns.

      (No doubt, however, if executives realistically faced jail time for the illegal behavior of the companies they manage, they would demand even higher pay - and probably "hazardous duty" pay for any time spent in jail.)

  • by magarity ( 164372 ) on Thursday October 23, 2014 @06:06PM (#48216773)

    When I lived in China between '07-'09 I interviewed at the local IBM office to do data warehouse ETL. They wanted to pay me a local wage around $1000/month but send me to the US on an 'L' visa whereby they wouldn't be subject to US wage laws which the manager said "we do it all the time". When I pointed out they couldn't send me to the US on any kind of visa since I'm a citizen, they dropped all contact.

    • by AK Marc ( 707885 ) on Thursday October 23, 2014 @06:14PM (#48216829)
      You should have just said yes, and see if you could get something in writing from them. Having that would have earned you more than the job would have paid, and made interesting reading for us.
    • A former coworker of mine, who is an immigrant from India, used to work for an India-base company. They assigned her to one of their US offices under an 'L' visa, paying her what she would have been paid in India. This was very common practice by her (now former) employer and many others she knew about. I suspect it still is.

      FWIW, while in the US, she met and married a US citizen. She asked to have her assignment be permanent. but the company declined. She quit and quickly found a job offering 5x what her p

  • Who wants to bet (Score:4, Insightful)

    by MerlynEmrys67 ( 583469 ) on Thursday October 23, 2014 @06:13PM (#48216817)
    There will be about 40,000 dollars in unpaid overtime being worked in India over the next few months to make this all back. At this point the workers are back in India where the US Department of Labor can't do anything about it...
    Outsourcing companies are almost the definition of evil.
    • if it's so easy to outsource and we don't need any workers here why do we even have the H1-B program in the first place? Could it be that there's a benefit to having workers here? I keep hearing that if we don't let 'em have their visas their just outsource the work anyway. Let 'em. We'll just take back all the land they own. Don't want to live and work in America? Fine. You can go home, but you can't take the ball...
  • by Amy Kono ( 3836839 ) on Thursday October 23, 2014 @06:13PM (#48216821)
    It's amazing that $1.21/hr is all that stands between an employment dispute and human slave trafficking. The company and involved employees should be punished much more severely, imho.
  • LOL $3500 (Score:3, Insightful)

    by Anonymous Coward on Thursday October 23, 2014 @06:14PM (#48216825)

    I bet that company was glad they ripped off workers rather than the music labels.

    If it were the music labels they would have been up for 100 times the amount

    • by Tablizer ( 95088 )

      I bet that company was glad they ripped off workers rather than the music labels

      If this lopsided penalty situation is not strong evidence that the USA is slipping into a plutocracy, I don't know what is.

  • Charles Manson is in for a stern talking to. They are considering finger shaking.

  • by Bomarc ( 306716 ) on Thursday October 23, 2014 @06:16PM (#48216853) Homepage
    The company where the work was done... not much was said about them in the article. Did they pay top dollar -- and get $1.21; or did "Electronics for Imaging" lowball, and the company knew something was up and just didn't say anything?
  • by Tablizer ( 95088 ) on Thursday October 23, 2014 @06:44PM (#48217039) Journal

    I've personally worked in a shop where they paid the H1B visa workers once every 6 months. They also didn't pay overtime, just the strait hour rate. (But at least it was the right total amount, overtime aside.)

    The visa workers had no intention of complaining because they risked getting booted home if they did. (It was during a recession.)

    It was at a big company that contracted through a smaller company so that the big company didn't inherent any legal risk of cheating. From the big co's perspective, they are merely paying the contracting company for hours. Where and how the workers were actually paid was legally the small contracting firm's responsibility. Thus, the big co got the benefits of cheating but not the risk. (And the small co. was probably a reshuffle-able front of some larger outfit.)

  • Something about this doesn't add up, $40,000 distributed between 8 employees is about $5,000 per employee over about 3.5 Months. Assuming that they all worked the Sept 8 - Dec 21 window that figures out to about 15 weeks, or about $333.33 a week that they weren't paid I'm guessing to get them to minimum wage (all BEFORE taxes). Even figuring an average of 100 hours a week that puts their minimum wage pay in California at about $900, where as at $1.21 it would only have been $121 a $779 difference. Those

  • and they are to cheap to pay that? ok 1.21HR even with OT pay is less then 40 hours at CA min wage.

    What us work wants to work that when MD's pays more. In and out burger pays a minimum of $10.50 HR.

  • and give the workers full back pay + court costs.

  • "But hey, it's not theft, because those people choose to work at that wage and if they're not happy, it's not like we're preventing them from flying to where the jobs are, right?"

    That's how some people think...

  • Tech labor (Score:5, Insightful)

    by confused one ( 671304 ) on Thursday October 23, 2014 @08:33PM (#48217539)
    So... if they can get away with doing this for tech labor, that means my company can bring 10-20 engineers from our China site to work in the U.S. We can pay them their current wage (no adjustments necessary) and only risk a trivial slap on the wrist if we get caught. This is a win-win. What a great precedent they've set here.
  • How? (Score:4, Interesting)

    by kenh ( 9056 ) on Friday October 24, 2014 @12:14AM (#48218469) Homepage Journal

    Where did they find housing in Fremont they could afford at $1.21/hr?

    How did they feed themselves?

    How did they afford the plane ticket to SF?

    Let me guess, the company paid for all the above, and subtracted it from their wages... That's about the only way you can approach $1.21/hr.

    Now, about that 121/hr work week - that has them working 5 days straight per week, with Saturday and Sunday off... Or about 17 hours a day, every day of the week.

    Let me guess, the folks filing the claim subtracted sleep time and founded every waking hour as a work hour because they are either in company housing or at work...

    Bottom line, I think their supporters are working too hard to make their case - like the homeless advocates who redefined homeless to include folks who would be homeless if they list their jobs and only have a few weeks savings to live on...

    • by dbIII ( 701233 )

      Now, about that 121/hr work week

      I've done weeks like that during plant shutdowns but never for more than five weeks in a row. Possible, but stupid for a wide range of reasons. Medical interns put in those sort of hours too but get sleep here and there during that time when they are on duty. Not just possible, but widespread, and stupid for an even wider range of reasons.

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