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Crime Businesses Education United States IT

University Employees Suspended Due To Guest Worker Scandal 209

sethstorm writes: By sponsoring employees for use at an IT staffing firm, Wright State University may have broken new ground in guest worker fraud. According to the Dayton Daily News, 19 individuals were sponsored by the university yet ended up working for WebYoga, a firm controlled by (now-suspended) top Wright State officials. They also cited Wright State's exemptions regarding prevailing wage law and H1-b limits as attractive qualities. This has implications not only for the existing workforce, but to students that see the university putting its own staff ahead of them.
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University Employees Suspended Due To Guest Worker Scandal

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  • by Anonymous Coward on Sunday September 13, 2015 @05:54PM (#50515601)

    H1-b Visa workers need to cost the companies 2x what hiring a citizen does. The extra money should go to training for existing, out of work, citizens.

    As long as there is financial incentive for this program to be abused, it will be.

    • you know, thats the first idea i have heard that actually makes sense besides simply making sure americans have jobs before outsourced workers are even considered
    • Also forced OT pay of any hours over at 40 at X2 base pay per hour and or remove the H1-B job lock.

  • Fallout (Score:4, Informative)

    by TrashGod ( 752833 ) on Sunday September 13, 2015 @05:56PM (#50515605) Journal
    Dayton Business Journal:
  • I guess if they start bringing in cheap labor from China instead of India they'll rename the company WebTaiChi.

  • wow (Score:5, Insightful)

    by Goldsmith ( 561202 ) on Sunday September 13, 2015 @05:59PM (#50515627)

    Department of Labor required international staffing agencies to pay a minimum of $61k for developers in Dayton. These guys (also in Dayton) paid $40k. Do the students know this was going on? Did the academic senate know this was going on? The staffing company paid the university to make this contract happen. Wow...

    Why do universities have an exemption for these rules at all?

    • Re:wow (Score:5, Informative)

      by slew ( 2918 ) on Monday September 14, 2015 @01:25AM (#50517049)

      Why do universities have an exemption for these rules at all?

      There are two H1B rules that people are generally not aware of...

      The first rule is the so-called "cap-exempt" employers. Although most companies have to compete for the limited number of H1b visa granted every year, some institutions are exempt from this cap (e.g., are allowed to hire H1b even if the limit is reached). Most research institutions have been granted cap-exempt status by the government, so H1b applications that go this route have more competition with other H1b's to get those positions. However, typically, these institutions still have to pay prevailing wages to such H1b employees, which brings us to the second little known rule...

      The second rule is known as the "safe-harbor" rule. During the H1b application process a prevaling wage determination must be made. Either the employer can request the Department of Labor to do one, or it can do a self-determined prevailing wage. However, if the DOL does the wage determination, it cannot be latter challenged (aka "safe-harbor"). Competitive companies often can't wait the 6-8 weeks it takes to get a number from the DOL so they often are margin up pay to make sure they can survive a challenge. Research institutions generally go the DOL certification route (because they are under less competitive pressure), and also often game the system to get a low prevailing wage (e.g., university staff can be paid similar to post-docs and would be comparable in this system even though that's generally on the low-side of prevailing wage). Also once a prevailing wage determination is made by the DOL, it can be applied to any number of applicants that have the same job description w/o resubmitting to the DOL with every applicant.

      That being said, it isn't just universities that exempt, but they are in a unique position to take advantage of both rules. They tend to be cap-exempt and they are hiring entry level folks with a reusable safe-harbor low-balled prevailing wage determination.

  • Personally, I'd get rid of all the H1B's. Business, is screwing American workers, just for more profit. Of course, our congress does what they tell them to do.
  • by Required Snark ( 1702878 ) on Sunday September 13, 2015 @08:13PM (#50516091)
    Or IBM or HP or Southern California Edison...

    The big players have bribed the right people (campaign contributions, eventual employment in the private sector), and used the right high priced lawyers. It's only the low level scamsters who get caught. Then the authorities get to pretend that they are enforcing the law and protecting US workers.

    It's just a piece of theater. Nothing to see here, move along.

    • by Mal-2 ( 675116 )

      Google, IBM, HP, and SoCalEd all have to abide by the overall limit on visas handed out annually. Universities are exempt from these limits. We can argue whether the limits in place are appropriate, but at least they exist. They'll do fuckall if it's sufficiently simple to evade them by allowing exempt entities to become staffing companies.

      • So fucking what? It's still the same sleazy scam. The number of visas, the exemptions, the gaming the system all have the same goal: impoverishing most of the US to put more money in the pockets of the elite.

        You are so brainwashed by the illusion of capitalism and faux "free enterprise" that you are supporting the looting of America. The game is rigged. There is no level playing field. The ever increasing gap between the wealth and the peasants (not citizens, because citizens have rights) is absolute proo

        • by Mal-2 ( 675116 )

          Are you being deliberately dickish? I did say "we can argue whether the limits in place are appropriate". I would agree that they are not. However, evading them entirely is a separate and even larger problem that must be dealt with severely.

    • Trump doesn't care that IBM or HP or Facebook are whining for more H1B. He will get rid of it.

  • by sethstorm ( 512897 ) on Sunday September 13, 2015 @08:53PM (#50516225) Homepage

    Understanding our clients' strategy, culture and business methodology leads us to fulfill their IT needs with custom and articulated solutions. Our results speak for themselves

    The results indeed do speak for themselves.

    1. Offering excellence in technology solutions, utilizing automation, creativity and innovation to solve client IT issues.

    They were quite creative in H1-b fraud by involving the university.

    2. Providing service to our customers and affiliates, based on the principles of professionalism, integrity and the spirit of partnership.

    ...for varying degrees of integrity.

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