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Infosys Agrees to Pay $34 Million to Settle Allegations of Fraud in Connection with H-1B Visas

Written By The Shapiro Law Group on November 07, 2013

Infosys – an Indian technology outsourcing giant – has agreed to pay $34 million to resolve claims that the company engaged in fraud with respect to H-1B and B-1 visas. Specifically, federal prosecutors accused the company of attempting to increase profits by illegally using the B-1 short-term business visitors’ visas to bring workers from India, instead of using the H-1B employment visa as required by immigration law. Infosys continues to vigorously deny the charges despite the settlement agreement, however.

Each year technology companies and other employers compete for the 65,000 H-1B employment visas made available. For the past three years, Infosys and two other Indian companies — Wipro and Tata Consultancy Services — were among the top five recipients of H-1B visas.

As pointed out in a New York Times article, the amount of the settlement was relatively small for Infosys, given that the company employs 160,000 workers worldwide and generates reported revenues of $7.9 billion, but the case highlights the increasing legal scrutiny and political skepticism in the United States regarding Indian companies that use temporary visas for guest workers employed at technology and software jobs in American companies.

The H-1B non-immigrant visa – commonly sought after by technology companies – is available to foreign workers who are employed by U.S. companies in specialty occupations that require theoretical or technical expertise in specialized fields, such as scientists, engineers, or computer programmers. In order to qualify for an H-1B visa, the employee must meet the following requirements:

  • The applicant’s job position requires a bachelor’s or higher degree;
  • The applicant possesses at least a bachelor’s degree or its U.S. equivalent, or  a combination of education and experience equivalent to a U.S. bachelor’s or higher degree; and
  • The wage offered to the applicant is at least the prevailing wage, or the actual wage paid to other professionals similarly employed, whichever is higher.

American technology companies have been urging lawmakers to increase the number of available H-1B visas. The current immigration bill that is stalled in the House of Representatives includes a measure to increase the H-1B limits, but it also includes new protections for American workers that could make it more difficult for foreign outsourcing companies to bring in temporary workers.

The knowledgeable Chicago employment immigration attorneys at the Shapiro Law Group have more than 30 years of experience helping clients with their visa and immigration needs.  We are familiar with the various job functions of foreign technology professionals and, accordingly, we can provide advice and guidance throughout the H-1B application process.  We continue to monitor developments with respect to immigration reform and proactively work with employers to obtain the necessary H-1B visas given the strict limitations on the number of H-1B visas that are available each year.

With quota requirements in mind, we will work with you to promptly file the necessary application with the necessary supporting documentation.  Contact us at (847) 564-0712 to discuss your visa needs with one of our knowledgeable employment immigration attorneys.