VSC CONFIRMS $500 FRAUD FEE MAY BE PAID BY BENEFICIARY OR THIRD PARTY

VSC confirmed to AILA in a teleconference that the $500 fraud fee may be paid by the beneficiary (employee) or by a third party, not necessarily by the employer. However, if the beneficiary provides the $500 fraud fee, this cost will be deducted from the total wage paid to the H-1B beneficiary when determining whether s/he has received the required wage (prevailing or actual wage, whichever is higher). There have been some confusion with some consular officers and DOL investigators who confuse permissible payors of the fraud fee with the ACWIA training fee, which is not permissible under any circumstance to be paid by the beneficiary (employee).