Infosys to pay $34 Million to complete US civil settlement


Bangalore: Infosys today announced it has completed a civil settlement that concludes the investigation by the US Attorney’s Office for the Eastern District of Texas and resolves all issues with the US Department of State, Immigrations and Customs Enforcement and the US Department of Homeland Security relating to I-9 paperwork errors and visa matters that were the subject of the investigation.

According to a statement from Infosys, there were no criminal charges or court rulings against the Company. Furthermore, there are no limitations on the Company’s eligibility for federal contracts or access to US visa programmes as a result of the settlement.

In the settlement, Infosys agreed to pay $34 million to resolve all allegations, for which the company had already taken a reserve of $35 million which included attorney’s fees. The settlement is focused on historical I-9 paperwork errors from 2010-2011 that Infosys began correcting before the investigation began. There is no evidence that the I-9 paperwork violations allowed any Infosys employee to work beyond their visa authorization.

As reflected in the settlement, Infosys denies and disputes any claims of systemic visa fraud, misuse of visas for competitive advantage, or immigration abuse. Those claims are untrue and are assertions that remain unproven. The Company’s use of B-1 visas was for legitimate business purposes and not in any way intended to circumvent the requirements of the H-1B programme. Only .02% of the days that Infosys employees worked on U.S. projects in 2012 were performed by B-1 visa holders.

The statement added, “Our Company policy demands adherence to all laws, rules and regulations everywhere we operate, and we take our compliance obligations seriously. In the settlement agreement, the US Government acknowledged that Infosys demonstrates a commitment to compliance with the immigration laws through its current visa and I-9 practices. This settlement removes the uncertainty of prolonged litigation and allows us to continue to focus on delivering measurable results for our clients.”

The fine, which the US Department of Justice said is the largest in a case of its kind, comes as US lawmakers consider legislation that would make it more difficult and costly for Indian IT firms to send workers to the United States on temporary, restricted visas.

Kerala IT News


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