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Bay Area tech company caught paying imported workers $1.21 per hour
Engadget ^ | 23 October 2014 | Ben Gilbert

Posted on 10/31/2014 11:20:28 AM PDT by Lorianne

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To: fuzzylogic
You don’t change their pay but you will be paying their travel expenses.

There is no such exemption that I know of, certainly not under California law. They also have to pay state income tax for any money earned in CA regardless of where they work normally. I'm afraid you are living up to your handle here.

41 posted on 10/31/2014 1:25:17 PM PDT by Hugin ("Do yourself a favor--first thing. , get a firearm!",)
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To: jennychase
Even after paying minimum wages , salary in India, fine etc, company is able to save big chunk of money. These workers were installing network, routers, computer etc. Minimum rate for these kind of jobs are $70+ hours, not adding providing insurance etc.

I sure as heck wouldn't want to have to work on a network built by these folks. I imagine you'd spend months debugging it.

42 posted on 10/31/2014 1:56:46 PM PDT by zeugma (The act of observing disturbs the observed.)
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To: Hugin

We do this all the time. If you have an employe in another country, like Romania, you’re paying them at a rate competitive within that country - not in US$ and with taxes paid to their host country. They then get a temporary visa to travel (attained prior, through US Embassy) to the USA for a couple weeks to participate in some work. We pay for their hotel, travel and meals. Then they go home. They were never paid in US$. They pay no income taxes to the US Government. There was no exploitation, no unusual cost to them.

The only question is about the type of visa. It is no different than having to take a business trip to Canada. You must have valid paperwork, with appropriate cause (you’re not doing something a Canadian could do), they stamp your passport giving you a temporary visa (give wrong reasons and you’ll be denied entry). My regular paycheck(US$) is deposited, with taxes paid to US Gov. I don’t suddenly get paid in Canadian $ and have to pay income taxes to Canada.

H1B, Permanent Residents, etc. are different as you live here, pay local, state, federal taxes. I saw nothing saying they were living here or what visa type they had.

To clarify my handle http://en.wikipedia.org/wiki/Fuzzy_logic


43 posted on 10/31/2014 2:13:49 PM PDT by fuzzylogic (welfare state = sharing consequences of poor moral choices among everybody)
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To: fuzzylogic

You are not I take it in California?

This is the state that goes after visiting ball players for income tax on the games they play here.


44 posted on 10/31/2014 2:50:27 PM PDT by Hugin ("Do yourself a favor--first thing. , get a firearm!",)
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To: Lorianne

Well, dang. $1.21 is almost fully one-half of what zuckerberg has in mind.


45 posted on 10/31/2014 2:51:29 PM PDT by DPMD
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To: Hugin

I don’t see how this has anything to do with California. You don’t get a “temporary visa to California”, you get one to enter the USA. How would your state government know? You’re just a visitor that got entry to the USA for business purposes. That is entirely different than accepting a job in the USA full-time on an H1B visa, or attaining Permanent Resident status (which I did). In this context you must declare your state of residency, hence all the regular tax rules.

The company I work for plays by the rules. We also have our employees from around the world come to California, there’s no logistics that they have to go through because they specifically went there vs. any other state.

It might be a detail omitted, they were here on H1B visa - if that’s the case then fine but they wouldn’t be able to afford the living expenses (esp. Cali). Which is why I’m assuming that isn’t the case.

That said, question: has the state successfully received any taxes from ball players because they played in California? I know it’s a crazy state, I just don’t understand how that would be legal. The players are just doing a job that requires them to cross state lines, everybody else pays tax only to the state where they reside. Should I be worried that I could be taxed by California when I’m asked to go there for business?


46 posted on 10/31/2014 4:51:59 PM PDT by fuzzylogic (welfare state = sharing consequences of poor moral choices among everybody)
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To: fuzzylogic
California has it's own labor and tax laws, including a higher minimum wage and stricter rules, and they are operating in CA. From the article, "We unintentionally overlooked laws that require even foreign employees to be paid based on local US standards."
47 posted on 10/31/2014 5:10:23 PM PDT by Hugin ("Do yourself a favor--first thing. , get a firearm!",)
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To: fuzzylogic

PS. 40k in back wages for eight employees is an average of 5k each. That’s a lot more than 2 weeks of minimum wage, even in CA.

As far as the ballplayer issue, I don’t know where that stands now. Their claim is that any money earned in CA is subject to state income tax regardless of where you live. I remember NY claimed the same thing with Rush Limbaugh and made him account for how many days per year he stayed in his NY condo, even after he moved to FL. He ended up selling the condo because of it.


48 posted on 10/31/2014 5:17:40 PM PDT by Hugin ("Do yourself a favor--first thing. , get a firearm!",)
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To: Hugin

Well, our company is HQ’d in California. I don’t see anything done by the organization that is different just because we’re asked to attend a meeting in California or New York. If that were the case then none of us would be asked to go.

Maybe all our guys around the world (that visit here) make more than CA minimum wage (I didn’t think so)...so maybe that’s all that is at issue. Outside that I can’t imagine how they could, logistically, enforce it.

Anyway...hope they enjoy their computer systems, you get what you pay for.


49 posted on 10/31/2014 5:33:57 PM PDT by fuzzylogic (welfare state = sharing consequences of poor moral choices among everybody)
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To: GeronL; Slings and Arrows

And the unemployment office said I had to be willing to lower my wage requirements to obtain a job in the tech industry (the one with billion dollar CEOs).


50 posted on 11/01/2014 9:50:04 AM PDT by a fool in paradise (Hey Obama: If Islamic State is not Islamic, then why did you give Osama Bin Laden a muslim funeral?)
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To: a fool in paradise

if you lower your demands to $1.20 an hour, you have a shot


51 posted on 11/01/2014 11:00:09 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: GeronL

They only pay $1.20 an hour but you’ll make up the salary loss with volume (120 hour work weeks!).


52 posted on 11/01/2014 11:05:55 AM PDT by a fool in paradise (Hey Obama: If Islamic State is not Islamic, then why did you give Osama Bin Laden a muslim funeral?)
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To: a fool in paradise

lol

17 cent Ramen noodle, dry, provided for lunch


53 posted on 11/01/2014 11:27:41 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: Hugin
Saving 40K on wages with a possible fine of less than 10% of that amount on the off chance you get caught sounds like a pretty sound cost cutting strategy.

And I think the government gets $10,000 per visa. But it still is far cheaper than paying local skilled talent.

54 posted on 11/02/2014 10:03:15 AM PST by a fool in paradise (Hey Obama: If Islamic State is not Islamic, then why did you give Osama Bin Laden a muslim funeral?)
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To: vpintheak
This is why Republicans won’t really take a stand on illegals, businesses is in their pockets. Dims get the votes, repubs got the political donations.

These business men give to the Democrat party.

55 posted on 11/02/2014 10:03:44 AM PST by a fool in paradise (Hey Obama: If Islamic State is not Islamic, then why did you give Osama Bin Laden a muslim funeral?)
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To: Beagle8U; GeronL
“Plus 120 hrs/week? How is that possible? That’s over 17hrs/day 7 days/week.” My guess is they worked 80 hours, and with overtime pay it amounted to 120 hours pay. Five 16 hour days would do it.

17 hours a day at the office (possibly windowed to be there when the daytime staff is not around). They were brought to America to do a job quick and cheaply. They were not brought here to sightsee.

They are probably fed meals (on the clock) at the office. Just because they were "billing" the hours does not mean that they didn't have paid breaks. They were just kept at the work location, working the 'whole' time.

56 posted on 11/02/2014 10:06:04 AM PST by a fool in paradise (Hey Obama: If Islamic State is not Islamic, then why did you give Osama Bin Laden a muslim funeral?)
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To: Lorianne

Frankly surprised that this lawless administration is forcing the company to pay.


57 posted on 11/02/2014 10:07:32 AM PST by Lazamataz (First we beat the Soviet Union. Then we became them. We have no 'news media', only a Soviet Pravda.)
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To: Graybeard58
120 hours per week seems a mite far fetched, there are only 148 hours in a 7 day week. If they spent all their off time doing nothing but sleeping, they would spend just 4 hours per day sleeping. How about time to eat, bathe, etc.?

The company's retort would be "Yeah, how much eating and bathing are they doing in INDIA?"

58 posted on 11/02/2014 10:10:03 AM PST by Lazamataz (First we beat the Soviet Union. Then we became them. We have no 'news media', only a Soviet Pravda.)
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To: Lorianne; GeronL
This is why a college degree has become worth less and less especially in professions. You are literally competing with everyone in the world who can do the same kind of work. There are many talented and smart people in other countries. All they need is a computer connection.

Yep because the crony communist/fascist billion dollar marxist Bill Gates and his corrupt buddies lobbied congress to make it so (by lying that there were not enough skilled workers domestically). A man with $33billion in the worth can afford to pay market scale. He skims the profits for himself and depresses the wages of an entire industry (not just at his vile shop).

IF these companies were being made to pay an import duty on the million dollar code that is written abroad, the million dollar contract work that is being outsourced, the million dollar prepared tax forms that are being produced overseas, the million dollar ad circulars that are being drafted overseas, etc. then there might be some protection for the local labor. As it stands they smuggle it in without paying import duty through the internet. But it was manufactured overseas all the same.

59 posted on 11/02/2014 10:10:15 AM PST by a fool in paradise (Hey Obama: If Islamic State is not Islamic, then why did you give Osama Bin Laden a muslim funeral?)
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To: a fool in paradise

Nah, it has nothing to do with Gates or how many ‘skilled workers’ we have or don’t have.

With a computer connection a lot of jobs cannot be contained within the USA. Any job where the final product can be transmitted by electronically is at risk.

That is virtually all design, imaging, back-up research, bookkeeping, etc. Hundreds of millions of cubicle jobs, gone and not coming back unless at the rate of pay.

Not Gates’ fault though unless you want to give him all the credit for fast computing and the internet.

Similar thing happened to long distance messengers when the telegraph and telephone where invented.


60 posted on 11/02/2014 10:40:25 AM PST by Lorianne (fed pork, bailouts, gone taxmoney)
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