Eight of the top 10 companies that filed a request with U.S. Department of Labor in fiscal year 2013 to temporarily hire a foreign professional were either Indian IT companies or IT companies that did the bulk of their development work in India.1 One of them, Infosys Limited, was recently sued by the United States in the U.S. District Court for the Eastern District of Texas for “systemic fraud and abuse of immigration processes.” United States v. Infosys Limited, Case No. 4:13-cv-634 (E.D., Texas). In its complaint, the United States alleged that Infosys knowingly circumvented the U.S. visa and employment laws by disguising hundreds of its foreign employees as business visitors and then causing such employees to perform skilled work in the United States in lieu of U.S. citizens and legitimate work visa holders.2
The Infosys case, filed on Oct. 30, 2013, was settled the same day. Under the settlement, Infosys agreed to pay the United States $34 million—the highest settlement amount in any immigration matter.3 The release granted by the United States to Infosys under the settlement expressly carves out claims related to violations of federal tax laws.
