Infosys, a technology services company based in India, agreed to a $34 million settlement with the U.S. Department of Justice after the company was accused of systemic visa fraud and abuse of immigration processes.

United States: Indian tech firm to pay $34 million for alleged visa abuse Infosys, a technology services company based in India, agreed Oct. 30 to a $34 million settlement with the U.S. Department of Justice after the company was accused of systemic visa fraud and abuse of immigration processes. While based in India, Infosys has offices in 30 countries, including the United States. It is the second-largest IT services exporter in India. U.S. authorities alleged that the corporation misused B-1 visas to bring temporary workers into the United States for jobs that are reserved for American workers or H-1B visa holders. Overall, according to Reuters, the U.S. Justice Department accused Infosys of the following: Knowingly and unlawfully sending people to work without proper visas; Allowing widespread failures in record-keeping; and Trying to deceive U.S. consular officials with false "invitation letters," which document a worker's purpose of travel. Regulations surrounding H-1B visas H-1B visas are strictly regulated in the United States and are reserved for people entering the U.S. to take up a "specialty occupation." They are intended for people who are working in the United States, on the payroll of a U.S. company and being paid the "prevailing wage." They are also subject to strict quotas and the demand for H-1Bs is higher than supply. A person using a B-1 visa, however, can enter the country for meetings, training or other temporary activities but is not legally allowed to do work. Authorities believe that Infosys used this visa to bring in foreign workers for things such as computer programming and coding. By abusing B-1 visas, a company could bypass wage regulations, avoid the costs of getting an H-1B (approximately $6,000) and avoid the quota/cap. Infosys refuted all allegations and ultimately came to a settlement with the Justice Department. "Infosys denies and disputes any claims of systemic visa fraud, misuse of visas for competitive advantage or immigration abuse," the company said in a statement. "Those claims are untrue and are assertions that remain unproven." Settlement terms The Justice Department told news outlets that at $34 million, this was the largest settlement ever to occur in a case of alleged civil fraud over visas. While Infosys denied the allegations, it did admit that it committed civil violations of U.S. employment law. The Justice Department ultimately agreed on a settlement because the tech company has already made efforts to remedy its violations and pledges to improve its system in the future. "While Infosys is not admitting any wrongdoing, its leadership did appreciate there were substantial problems in the way they were conducting business in this country," said John Malcolm Bales, the United States attorney for the Eastern District of Texas, where the trial occurred. "We think they've cleaned up their act." The trial's effect on visa regulation in the future Although this trial has concluded, it will likely set a precedent for the future. According to The New York Times, American technology companies have recently been asking for an increase in the H-1B cap, in order to get the number of skilled workers they need. However, part of the Senate bill that was passed in June will make it more difficult for foreign outsourcing companies to bring in temporary workers. "In the past few years, there has been a real assault by the federal government on the information technology consulting industry, and it has hit the Indian companies particularly hard," Avram Morell, an immigration lawyer in New York, told the Times. Chirajeet Sengupta, the practice director at Everest Group in Mumbai, which advises clients on technology vendors, also pointed out how this case could impact visa and immigration policies in the United States. "It is likely to add more fuel to the ongoing debate around visa reforms," he told Reuters. "These reforms, if executed, have the potential to impact Indian service providers' landed resource model that is largely driven by access to H-1B visas in large numbers."