Indian tech company faces increased visa compliance issues

Infosys must hire an external auditor to examine its existing workforce’s compliance with U.S. regulations

The Securities and Exchange Commission (SEC) has its sights set on Infosys, India’s second-largest information technology exporter. The SEC is planning to investigate Infosys to see if it is in compliance with U.S. regulations covering foreign workers. 

Two years ago, a former Infosys employee decided to blow the whistle on the company, claiming it was abusing its business visit visas. The Department of Justice and Department of Homeland Security investigated the company, and now the SEC is looking into allegations of potential wrongdoing.

Previous investigations showed that Infosys did not keep proper records relating to I-9 forms, as is required for all companies that send workers to the U.S.  I-9 forms are used to verify the identity and employment status of those hired to work in the U.S.

Now, the SEC is requiring Infosys to hire, at its own expense, a third-party auditor to take a closer look at the paperwork on the company’s U.S. workforce. The auditor is required to examine a random sample of at least 4 percent of the documents in order to ensure that Infosys has remained compliant with the regulations.

Infosys has nearly 15,000 employees in the U.S., and it has agreed to pay a $34 million settlement related to its previous violations.

 

For more information on recent SEC actions, check out the following stories:

Latest whistleblower award from SEC tops $150K

Dodd-Frank Act making compliance tough for some international banks

Investment firms settle with SEC for ignoring compliance programs

Regulatory: Why the SEC’s proposed pay-ratio rule will increase compliance costs

Managing Editor

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Rich Steeves

Richard P. Steeves is Managing Editor of InsideCounsel magazine, where he covers the intellectual property and compliance arenas. Rich earned a B.A. in English Literature...

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