The alleged practice enabled Infosys to undercut competitors in bids for programming, accounting and other work performed for clients, according to people close to the investigation. Infosys clients have included Goldman Sachs Group, Wal-Mart Stores Inc. and Cisco Systems Inc.
Infosys said in an email that it is talking with the U.S. Attorney’s office, “regarding a civil resolution of the government’s investigation into the company’s compliance” with employment-record “I-9 form” requirements and past use of the B-1 visa. A company spokesman, who confirmed a resolution will be announced Wednesday, said Infosys had set aside $35 million to settle the case and cover legal costs. He said the sum was “a good indication” of the amount involved. Employers complete an I-9 form to verify the identity and employment authorization of each new hire.
A spokesman for Homeland Security Investigations, the DHS unit leading the probe, declined to comment before an official announcement. An official with the U.S. Attorney’s office confirmed the resolution would include only civil penalties and constitute “a full resolution to the case.”