The United States Court of Appeals for the Sixth Circuit recently held that the owner of several medical clinics in Tennessee and Florida was personally liable for back wages, the costs of obtaining H-1B and J-1 waivers incurred by physicians hired by the clinics, and other civil penalties. Dr. Mohan Kutty had hired foreign physicians with J-1 foreign medical graduate visas.  Foreign physicians holding J-1 visas are eligible to receive medical training in the U.S.  However, they are required by law to return and reside in their home countries for two years before they can return to the U.S. or change to another non-immigrant status.  This “two-year residency requirement” for foreign physicians can be waived with the filing of a waiver application with the United States Department of State.  Dr. Kutty and his clinics filed the J-1 waiver applications, and subsequent H-1B petitions on behalf of the foreign physicians, but deducted the relevant visa and waiver fees from the physicians’ pay.  Dr. Kutty and his clinics also failed to pay the listed wages on the filed H-1B petitions, as required by the United States Department of Labor.  The United States Court of Appeals for the Sixth Circuit ordered Dr. Kutty to pay back wages, including the costs of obtaining the J-1 waivers and H-1B visas, totaling $1,444,294, and assessed $108,800 in civil penalties, citing that under the Immigration and Nationality Act, H-1B employers must shoulder the “business expenses” for H-1B petitions and J-1 waivers, and to deduct such costs from the physicians’ wages were unauthorized business deductions.