Infosys is India’s second largest software exporter, employing 160,000 people in 30 countries, including 15,000 in the U.S. A probe conducted by the Department of Homeland Security and the State Department revealed that Infosys knowingly bypassed governmental oversight in the H-1B (professional worker visa) program. By using B-1 visa (business visa) holders to perform tasks which would have otherwise been performed by U.S. citizens and those on valid H-1B visas, Infosys obtained an “unfair advantage over competitors and avoided tax liabilities”. Court documents reveal that Infosys aimed to cut its costs[1] and processing times, and avoid quotas[2] for immigration procedures by using misleading invitation letters containing fraudulent statements regarding the visa holder’s true purpose of travel. The letters usually mentioned a business meeting or a negotiation as the purpose of the trip, when in reality the visitors were performing contract-work which displaced domestic workers. Furthermore, Infosys even created a special “Do’s and Don’ts” document for new arrivals containing the following advice:
Clearly, Infosys utilized the B-1 visa for unauthorized purposes as defined by USCIS.
In general acceptable B-1 activities include
- negotiating contracts,
- attending conferences,
- representing the overseas employer in dealing with vendors, suppliers, customers, etc.
- undertaking short-term projects in the B-1 visitor’s area of expertise. These projects may include providing or receiving training or consultations.
A person holding a B-1 visa may not work for a US employer. In other words, the activities that a B-1 visa holder performs in the US cannot be the same activities which are performed by employees or contractors of a US company.
Misuse of B-1 visas was not the only serious and blatant violation of immigration law, Infosys also had other less obvious, but equally significant infractions in regards to I-9 compliance. It turns out that Infosys failed to maintain I-9 records for many of its foreign nationals in the United States in 2010 and 2011 as required by law; 80% of all I-9s from Infosys contained substantive violations. Although they are more difficult to detect, I-9 violations are not insignificant and present themselves as costly “Skeletons in the Closet” for many U.S. companies.
The following is a list of proven strategies that help companies ensure immigration compliance.
Best Practices:
- DO NOT bring an employee to the US under the B-1 if the employee’s activities in the US will involve any activity that a US worker could perform.
- Maintain accurate and updated I-9 records for all employees (use E-Verify to simplify the process).
- Never sign or write misleading or fraudulent documents on behalf of employees.
- Use the visa type that appropriately matches the type and duration for which work will be done.