H-1B Employer Held Personally Liable for Back Wages, Penalties: Matter of XCEL Solutions

H-1B Employer Held Personally Liable for Back Wages, Penalties: Matter of XCEL Solutions

"I find it clear the XCEL served as the alter-ego of Mr. and Ms. Goel.  Respondents observed no corporate formalities, received from XCEL hundreds of thousands of dollars in loans and rents but could produce no documentation memorializing these transactions, and intermingled corporate and personal assets.  As a result, Respondents compromised XCEL’s ability to comply with the H-1B wage laws.  Thus, justice and fundamental fairness require that Mr. and Ms. Goel be held personally liable for back wages and civil money penalties assessed by the Administrator. ...  For the foregoing reasons, I find that Respondents violated the H-1B wage laws. It is hereby ORDERED: 1) Respondents must pay $ 253,888.92 in back wages to the following former H-1B employees: Christopher Anabo ($19,724.85), Gabriela Andre ($14,354.56), Maria Bautista ($23,525.05), Remar Cuyugan ($6,351.84), Olalekan Fabode ($7,891.68), Valeria Fuentes ($14,757.12), Orlando Geronimo ($7,014.16), Mary Ann Knaik ($17,943.20), Joseph Layo ($20,465.00), Maria Katarina Lopez ($10,765.92), Jay Maranan ($23,706.02), Christopher Munez ($7,666.64), Rogelio Nantes ($33,297.00), Noel Rodriguez ($33,577.58), Johnny Ruiz ($6,333.67), Alberto Tingson ($6,514.63). 2) The claims of two former H-1B employees, Benedicto Maralit and Pawan Singh, are remanded to the Lawrenceville New Jersey Wage and Hour Office for a determination of their applicable prevailing wage during the relevant period. 3) The Administrator’s assessment of $67,500.00 in civil money penalties for Respondents’ willful failure to pay a prevailing wage is affirmed. 4) The Administrator’s assessment of $3,750.00 in civil money penalties for Respondents’ failure to post notice of an LCA at end client work sites is affirmed. 5) The Administrator’s assessment of $600.00 in civil money penalties for Respondents’ failure to make secondary displacement inquiries is affirmed. 6) The Administrator’s assessment of $600.00 in civil money penalties for Respondents’ failure to cooperate in the investigation is affirmed. 7) Respondents are responsible for pre-judgment compound interest on the aforementioned back wage assessments. I also find they are responsible for postjudgment interest on all back wage assessments, until satisfied." - Matter of XCEL, May 16, 2012.