Infosys Surrounded By Lawsuits Over Alleged Visa Misuse

In the last two months, the U.S. government has turned macho against the Indian IT business due to offshoring by taking several steps like launching a TV campaign to promote onshoring, the inclusion of a mandatory clause for no offshoring in a couple of government contracts and the consideration of a bill called ‘Bring Jobs Home Act’. The anti-offshoring sentiment has been on an increase in an attempt to look proactive on the domestic unemployment issue in the election year. In this environment, a couple of Infosys’ employees in the U.S. have filed lawsuits against the tech giant, resulting in a criminal investigation by the U.S. authorities into the visa practices of Infosys.

Of these two cases, employee Jay Palmer had claimed to have been harassed at work, sidelined and received death threats for refusing to be a part of the alleged plot of swindling the U.S. immigration laws by which the company is bringing in Indian engineers for projects in the U.S. through B-1 visas instead of the more expensive and more difficult to get H-1B visas. The trial had earlier been scheduled for August 20 and has now been postponed to September 17. In the ruling held on Monday, August 21 in the Alabama Court, District Judge, Myron H. Thompson said there was no basis to support any of the charges filed by Palmer under the current Alabama law. As a result of this, the case wouldn’t go on trial and Palmer had no right to recover losses.

Though Palmer’s case being dismissed caused Infosys’ stocks to go up by as much as 3.25 per cent, this glory will only be short-term considering the fact that the investigation by the Department of Homeland Security and federal grand jury of Infosys’s visa usage continues to hover over the company. What also continues to exist is the second lawsuit filed by a former employee, Satya Dev Tripuraneni, in the district court at North Carolina. This lawsuit too is in line with Palmer’s case, claiming harassment by the management for highlighting the apparent misuse of visas by Infosys. S.D.Shibulal, CEO and MD of Infosys today said that the company has finished investigated into the Tripuraneni case and has found no backing to the claims made by Tripuraneni. What will overpower today’s gains and define better the impact on Infosys over the visa issue is the progress on the investigation by the grand jury.