Infosys Corporation last month agreed to a $34 million civil settlement—the largest ever in an immigration case—with the Department of Justice to settle allegations that it engaged in systemic fraud and abuse of immigration processes by hiring illegal workers.

Infosys is a consulting, technology, and outsourcing firm that brings foreign nationals into the United States to perform work and fulfill contracts with its customers under two visa classification programs: H-1B and B-1.

An H-1B visa allows a foreign national to provide temporary hands-on work or services in the United States, whereas a B-1 visa can be used only for business visitors to come into the country on behalf of a foreign company for a limited period of time to engage in business activities, such as attending business meetings and conferences.

According to court documents, 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 U.S. citizens, or require legitimate H-1B visa holders. 

“Infosys did so in order to increase profits, minimize costs of securing visas, increase flexibility of employee movement, obtain an unfair advantage over competitors, and avoid tax liabilities,” the Justice Department stated in a press release.

The settlement marks the culmination of an investigation launched by the government in 2011 after being tipped off by an Infosys U.S. employee over allegations that the company was illegally bringing workers from India under the B-1 business visitor visa instead of the H-1B work visa.

“We will not tolerate actions that mislead the United States and circumvent lawful immigration processes, whether undertaken by a single individual or one of the largest corporations in the world,” U.S. Attorney John Bales said in a prepared statement.  “The H-1B and B-1 visa programs are designed and intended to protect the American worker, and we will vigorously enforce the requirements of those programs.”

Enhanced Compliance Measures

As part of the settlement, Infosys has agreed to enhanced corporate compliance measures. In reaching the settlement, the Justice Department acknowledged Infosys's cooperation with the government during the investigation and on compliance measures taken by Infosys in the areas of B-1 and H-1B visas and I-9 documentation, both prior to and during the course of the investigation. 

The settlement agreement requires:

Additional auditing for I-9 forms;

A reporting requirement for B-1 usage;

An agreement to continue to use only detailed invitation letters; and

The continued use of corporate disciplinary processes for employees that violate U.S. immigration laws.

A client alert from Faegre Baker Daniels stated that the settlement should put companies on notice that the U.S. government is serious about cracking down on immigration laws and regulations and “ensuring that all applicable laws are followed and used fairly by all involved with the visa process.”