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Federal regulators are looking into claims that Sun Microsystems Inc. discriminated against U.S. workers in favor of foreign workers on temporary visas during the company's November layoffs, according to a Sun spokeswoman.
Sun spokeswoman Diane Carlini confirmed that the preliminary investigations by the U.S. Department of Labor and the U.S. Department of Justice came after a complaint filed in April by former Sun employee Guy Santiglia.
Carlini said Santiglia, an engineer who was one of 3,900 workers laid off in October (see story), filed a complaint with the two agencies alleging that he and others were laid off by Sun, which then hired foreign workers on H-1B visas in order to save money. He claimed that foreign workers would be paid less than U.S. workers.
Carlini said Santiglia's claims are without merit. She said Sun's decision to hire or lay off workers is based solely on their qualifications for particular jobs, not their residency status. She said only 5% of Sun's employees held H-1B visas.
"Santiglia claims he should have been given another job because he is a U.S. citizen," she said. "If he had the necessary skills, he would have been offered another job."
Carlini said Sun doesn't break out employees' pay rates based on their status as residents.
In 2000, Congress raised the cap for H-1B visas because of a shortage of technical workers. Santiglia claimed that the program allows companies such as Sun to hire foreign workers and pay them less than their U.S. counterparts.
Neither Santiglia nor a spokesman for the Justice Department could be reached for comment. A Labor Department spokeswoman said she couldn't confirm or deny an investigation.
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