US opens probe against TCS, Infosys for H1-B visa violations

The move by the Labour Department comes days after the NYT had reported that hundreds of employees at Walt Disney.

Written by Yoshita Singh | Updated: June 13, 2015 1:46 am
TCS, Infosys, H1-B visa violations, US government, Business news, World news Southern California Edison had recently laid off more than 500 technology workers amid claims that many of those laid off were made to train their replacements.

The US government has opened an investigation against two of the biggest Indian outsourcing companies for possible violations of H1-B visa rules, according to a media report.

The Department of Labour has opened the investigation against Tata Consultancy Services and Infosys for “possible violations of rules for visas for foreign technology workers under contracts they held with an electric utility Southern California Edison,” the New York Times said.

The power company had recently laid off more than 500 technology workers amid claims that many of those laid off were made to train their replacements who were immigrants on the temporary work visas brought in by the Indian firms Senators Richard Durbin of Illinois and Jeff Sessions of Alabama announced the investigation after they were notified by the department, the report said.

The move by the Labour Department comes days after the NYT had reported that hundreds of employees at entertainment giant Walt Disney were laid off and replaced with Indians holding H1-B visas.

About 250 Disney employees were told in late October last year that they would be laid off and many of their jobs weretransferred to immigrants on H1-B visas brought in by an outsourcing firm based in India, the report had said.

It had also cited the layoffs at the Southern California Edison power utility, saying that the layoffs are “raising new questions about how businesses and outsourcing companies are using the temporary visas, known as H-1B, to place immigrants in technology jobs in the United States.”

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    bonku
    Jun 12, 2015 at 11:20 pm
    DO you know who built India? Who and how first men arrived in India after human race evolved in central Africa? Immigrants did not do any charity coming to the USA. Moreover, we can not change the history but every govt has the duty to take care of its citizens first.
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      bonku
      Jun 12, 2015 at 5:59 pm
      Some American executives and shareholders of those American companies are the worst enemies of their own country. If these Indian companies are investigated, then those executives and shareholders also should be investigated who allowed such cheaper, easily exploitable, mostly brain dead tech coolies to enter USA and snatch away such mundane jobs form American workers.
      Reply
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        Ashutosh Thatte
        Jun 12, 2015 at 2:00 pm
        Open markets must prevail. While senate will try to take 'por decisions' by blocking immigration, truth is that companies must do whatever it takes to stay compeive. Else compeors will crawl ahead and in the long run the 'protective' policy will leave US companies incompetent and sick leading to thousands more losing their job. Also, US has an aging potion and a skill gap in IT for which the only answer is to allow and promote immigration if the country aims to compete with China, Germany and other trade surplus countries in the long run.
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        Paul S
        Jun 12, 2015 at 7:50 pm
        Common do you know who built america, its the immigrants.who wanted free markets and access to world markets usa again. Usa cannot have their way always. This is the price of globlisation.
        Reply
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          varkey
          Jun 12, 2015 at 5:51 pm
          US should change Visa from H1b to other category one..so Indian guys can apply themselves and Interview in US Consulate should be strict enough to avoid fake resumes..so it not just IT, all skills sets they should promote.. every one knows Indian firms pay less so that category people only join those for Initial experience... It help US also, people who are talented have own visa, come in US and search job, if they dont get JOb within 6 months, return back to India mandatory..and come only after 1 yrs..
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            Parlikad Venkatakrishnan
            Jun 12, 2015 at 9:07 pm
            All these mutli nationals and the ZUS corporations have only one Mantra.Maximise profits.They are not worried about the employees welfare or their jobs. No Swadeshi or Swaraj in USA.
            Reply
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              Shrikant Sharma
              Jun 13, 2015 at 3:59 am
              The visa to usa r sold in the black market at the rate of more than 3 to 4millions of rupees in Bombay-Bangalore and madr where these *outh indian driven and hold companies r situated
              Reply
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