US homeland security department reviews Infy's employer eligibility

Infosys, already fighting a legal battle in the US for alleged violation of B-1 visa norms, may be heading for another trouble in that country.

The city-headquartered information technology services company said the US Department of Homeland Security (DHS) was reviewing the company’s ‘employer eligibility verifications’, after it found ‘significant percentage’ of errors in Forms I-9 of some of its employees working in the country.

“In connection with this review, we have been advised that the DHS has found errors in a significant percentage of our Forms I-9 that the department has reviewed. In the event that the DHS ultimately concludes that our Forms I-9 contained errors, the department would likely impose fines and penalties on us,” the company said in a filing to the Securities and Exchange Commission.

The Form I-9 verifies the eligibility of an employee to work legally in the US, according to the Immigration Reform and Control Act, 1986. Employers are required to verify the employment eligibility of every employee. According to the Act, an employer who fails to obtain appropriate documentation from an employee before allowing him to work in the US can be fined penalties between $110 and $1,100 for each violation.

“In light of the fact that, among other things, the foregoing investigation and review are ongoing 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 could incur from unfavourable outcomes in such matters,” the company said in the filing.

The company is already fighting a legal battle in a federal court in the US for violation of B-1 visa norms as alleged by Jay Palmer, one of its employees in the US.