The US Department of Justice has launched an investigation into Infosys, focusing on the classification of certain H-1B visa recipient employees in immigration documents filed with US government authorities. This probe centers on workers assigned to one of Infosys's clients, raising questions about compliance with visa regulations.
Infosys Responds to Ongoing Investigation
Infosys has confirmed it is actively engaged in discussions with the Department of Justice regarding this matter. The company is also conducting its own internal inquiry to address the allegations. In a recent regulatory filing, Infosys stated that it cannot predict the outcome of the investigation at this time. The company acknowledged that the results could potentially have a material adverse effect on its business and operational performance.
History of Previous Probes and Settlements
This is not the first time Infosys has faced scrutiny from US authorities over visa-related issues. In 2013, the company agreed to pay $34 million in penalties to settle allegations of visa fraud and I-9 paperwork errors investigated by the US Department of Justice. Then, in 2017, Infosys reached a $1 million settlement with New York State. This settlement addressed failures to compensate hundreds of workers brought in on work visas and to pay applicable state taxes.
Infosys clarified that the 2017 agreement concluded New York State's investigation into taxes paid during 2010–2011. Importantly, no criminal or civil charges were filed against the company in that case.
CEO Addresses Rumors of Employee Detentions
Infosys CEO Salil Parekh has publicly refuted reports suggesting that any of the company's employees were detained or deported by US Immigration and Customs Enforcement. His statement came in response to a viral social media post that caused concern among Indian professionals holding H-1B visas in the United States.
Speaking during an earnings conference on Wednesday, Parekh provided clarification on the situation. "No Infosys employee was apprehended by any US authority," he stated firmly. "A few months ago, one of our employees was denied entry into the US and was sent back to India."
Details of the Viral Social Media Post
The viral post on X, which circulated widely on Tuesday, described an Infosys employee from Mysuru who was reportedly on an onsite assignment in the US. According to the post, ICE agents took this employee and gave him two hours to choose between jail or deportation. After opting to return to India, US authorities escorted him onto a flight via Frankfurt.
The post further noted that Infosys lawyers received the employee at Bengaluru airport upon his return. The company was said to be providing counselling support and exploring potential legal action against ICE. However, Parekh's statements directly contradict the claims made in this social media narrative.
As the investigation progresses, Infosys continues to navigate these complex immigration challenges while maintaining its operations and client relationships in the United States.
