Kutty v. U.S. Dep’t of Labor

Dr. Kutty ran Tennessee and Florida medical clinics under several corporate entities. Physicians employed by the clinics entered the U.S. on J-1 nonimmigrant visas, 8 U.S.C. 1182(j)(1) that allow physicians to remain in the U.S. for graduate and medical training, but require them to return to their home country for two years following the J-1 visa’s expiration upon completion of their studies. A government agency may request a J-1 waiver of the two-year requirement on the physicians’ behalf if the physician has a contract to practice medicine for at least three years in an area designated as having a shortage of health-care professionals. Each of the 17 physicians Kutty employed obtained a J-1 waiver. Kutty signed Labor Condition Applications, certifying that they would be paid the greater of the actual wage level the employer paid to other individuals with similar experience for the type of employment at issue or the prevailing wage level for the occupational classification in the area of employment. Applicable rates ranged from $52,291 to $115,357. When an administrator told Kutty that physicians were absent or arriving late, Kutty withheld salaries, which he released when they began seeing more patients. The doctors complained to the Department of Labor claiming. The Administrator of the Wage and Hour Division found multiple violations. An Administrative Law Judge affirmed, found the clinics liable for back wages and the costs of obtaining J-1 waivers and H-1B visas, held Kutty personally liable, and assessed a civil penalty. The Administrative Review Board affirmed; the district court dismissed Kutty’s petition for review. The Sixth Circuit affirmed.View "Kutty v. U.S. Dep't of Labor" on Justia Law