Infosys, one of India's largest IT consulting companies traded over the NYSE with market capital exceeding $30 billion could not escape the U.S. government's investigation into the legality of its immigration practices as evidenced by its recent $34 million settlement with the U.S. Department of Justice (DOJ), regarding claims that the company improperly used the B-1 nonimmigrant classification in violation of the U.S. immigration laws. So the $34 million question is "What can we learn from the Infosys settlement?"

Beware the Whistleblower

One of the hard lessons that Infosys learned was the impact that a disgruntled employee could have on its activities. The DOJ investigation began after an employee complained that Infosys was bringing in foreign workers to the United States on B-1 visas for unlawful work assignments. This whistleblower stands to collect a portion of the settlement proceeds so the financial incentive to report organizational misconduct is strong. Couple that with the whistleblower's resentment of the employer and you have a recipe for the type of expensive disaster that Infosys just experienced.

Do Not Neglect the Legal Limits on the B-1 Visa Classification

The B-1 visa classification allows foreign nationals to engage in certain activities. These include consulting with the U.S. business associates; attending business conventions; participating in litigation; negotiating contracts; and other temporary activities involving and incident to international trade or commerce. But the B-1 category does not permit employment or labor for hire. This means B-1 visitors cannot work here while in the US.