Client issue:
CRA’s Labor & Employment experts were retained by a multinational firm providing technology, consulting, and business process services in connection with a US Department of Justice investigation into the compensation of employees working under H‑1B visas. The investigation focused on whether employees were appropriately classified and compensated in accordance with applicable prevailing wage requirements. The team’s work supported counsel’s assessment of potential exposure arising from alleged miscoding of employee occupations and associated pay practices.
CRA approach:
A multidisciplinary CRA team, including in-house immigration counsel, with more than 16 years of experience advising on employment-based immigration programs and the regulatory framework governing H-1B workers, was assembled. Leveraging its expertise, the team evaluated occupational classifications, prevailing wage obligations, and the potential compliance implications of compensation and role-classification practices. Analysis of detailed payroll and human resources data for employees at relevant US locations was performed, mapping each individual to the appropriate occupational classification and corresponding market wage benchmarks, and comparing actual compensation to applicable prevailing wage requirements.
Client impact:
Using corrected occupational classifications, the CRA Labor & Employment team quantified potential underpayments attributable to prior mis-categorization of roles. The analysis provided a defensible framework for identifying affected employees, estimating potential back wages, and informing remediation and compliance strategies going forward.
