$34 million fine paid by Infosys to settle US Visa Row

In what may be termed as the heaviest immigration fine slapped by the US government against an outsourcing firm, Indian IT bellwether Infosys Ltd Wednesday agreed to pay $34 million.

InfosysThe amount is the fine imposed on the firm to settle a visa row it was embroiled in over the last two years. “We have agreed to pay $34 million to resolve all allegations for which we have taken a reserve of $35 million, including attorney’s fee,” the $7.4-billion global software major said in a statement here.

The settlement is related to Immigration-9 (I-9) paperwork errors in 2010-11. The company began correcting the errors before the probe began. Overseas firms sending employees to the US for onsite work for their clients have to complete the I-9 form to verify the identity and employment authorisation of each employee coming to the US on a specific visa like H1-B.

Infosys, however, maintained that there was no evidence that the I-9 paperwork violations allowed its employees to work beyond their visa authorization.The US immigration authorities issues B-1 visas for short-term visits to attend business seminars and restrict employees from engaging in gainful employment during their stay. In the settlement agreement, the US government, however, acknowledged that Infosys demonstrated a commitment to compliance with the immigration laws through its current visa and I-9 practices.

“The settlement removes uncertainty of prolonged litigation and allows us to focus on delivering measurable results for our clients,” the statement added.

Clarifying that there were no criminal charges or court rulings against it, the company said there were no limitations on its eligibility for federal contracts or access to US visa programmes following the settlement. An overseas employee with an H-1B visa can remain in the US for at least three years and is paid locally, while their companies withhold federal and state income tax.

Michael Niren

About Michael Niren

Michael is a graduate of Osgoode Hall Law School in Toronto. He is a member of the Law Society of Upper Canada, the Canadian Bar Association’s Citizenship and Immigration Section and the Associate Member of the American Bar Association. Read more

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