US may impose penalty on Infosys for error in employees’ details

Venkatesh Ganesh Bangalore | Updated on November 21, 2017

India’s second largest software exporter Infosys has disclosed that the US Department of Homeland Security (DHS) is still looking into the eligibility of some of its employees working in the US.

In a filing to the SEC, Infosys added that the DHS has found errors in a significant percentage of its employees’ I-9 forms and may impose fines and penalties related to such alleged errors. “At this time, we cannot predict the outcome of the discussions with DHS or other governmental authority regarding the review of our I-9 forms,” it added.

What is I-9 form?

I-9 form is an employment eligibility verification form provided by the Federal Government to companies that deploy non-American residents working in the US and every hired employee has to fill an I-9 form at the time of hiring.

The grand jury is continuing its investigation and we remain in discussions with the US Attorney’s Office regarding these matters, we are unable to make an estimate of the amount or range of loss that we expect to incur in connection with the resolution of these matters, Infosys added. The issue of visa irregularity came into light first in May 2011 when Infosys received a subpoena from a grand jury in a US District Court in connection with a lawsuit filed by Jack Palmer, one of its US-based employee. In his complaint, he accused Infosys managers of mistreating him after he blew the whistle accusing the company of visa irregularities. However, in August last year, a US court dismissed harassment charges filed by Palmer.

Infosys said the grand jury is continuing its investigation and it is unable to make an estimate of the amount or range of loss that it expects to incur in connection with these matters.

Immigration reform

This development comes at a time when the US is debating an immigration reform that would include increased enforcements, higher wages and embarking on a legislation that will benefit the American worker, while still ensuring that US companies get the specialised workers.


Published on May 14, 2013

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