Infosys to Pay Record $34 Million to Settle Claims of Visa Fraud and Abuse of Immigration Processes

Author: Melissa A. Silver, XpertHR Legal Editor

November 8, 2013

Infosys, a global technology, consulting and outsourcing company based in India, has agreed to pay a record settlement of $34 million to resolve claims of visa fraud and abuse of immigration processes, the US Department of Justice (DOJ) announced in a press release.

The settlement highlights that it is critical for employers to comply with visa, immigration and Form I-9 requirements. In particular, this settlement demonstrates that employers must ensure that they seek the proper visa classification when sponsoring a foreign national for employment. Misrepresenting a foreign national employee's actual purpose for entering the US may expose an employer to a significant penalty.

Infosys is located in 30 countries, including the US, with its Plano, Texas, location responsible for US immigration processes. The DOJ alleged that Infosys circumvented "the requirements, limitations, and governmental oversight of the H-1B visa program by knowingly and unlawfully using B-1 visa holders to perform skilled labor in order to fill positions in the United States for employment that would otherwise be performed by the United States citizens or require legitimate H-1B visa holders."

Infosys denied the allegations, saying its use of B-1 visas was for legitimate business reasons.

A B-1 or business visitor visa may be used by foreign nationals traveling to the US to participate in business-related activities, such as attending business meetings or training. Business visitors are prohibited from engaging in "productive work." Conversely, H-1B visas are issued to foreign workers who will work in a specialty occupation in the US. A specialty occupation position is defined as a job that requires at least a bachelor's degree (or its equivalent) in the specialty field of study.

The government claims that Infosys misrepresented the foreign national workers' true purpose for entering the US to:

  • Increase its profits;
  • Reduce its costs to secure the visas;
  • Increase flexibility of employee movement;
  • Obtain an unfair advantage over its competitors; and
  • Avoid tax liabilities.

In addition to the visa fraud and abuse of immigration processes allegations, the DOJ also alleged, among other things, that Infosys failed to retain Form I-9 records for many of its foreign national employees in the US for 2010 and 2011 and to update and reverify the work authorization of a large percentage of its foreign national employees.

The settlement requires Infosys to:

  • Pay $34 million to the US government;
  • Perform additional auditing of its I-9 Forms;
  • Report on its B-1 usage;
  • Use only detailed invitation letters (i.e., letters to the US Consular Officials stating the purpose for visa); and
  • Continue to use its disciplinary processes for employees who violate US immigration laws.