Software company Infosys has been denied an arbitration in its legal proceedings over an alleged breach of US visa laws.
11 November 2011
Judge refuses settlement in Infosys US visa lawsuit
A US Federal Court judge has refused to allow Indian software giant Infosys to make an out-of-court settlement with an employee who has accused the company of deliberate US visa breaches.
Infosys will now have to proceed with a public trial facing allegations of circumventing America visa rules by offering employees short-term business visas rather than the more expensive visas required by law for highly skilled workers.
The lawsuit was filed by Infosys principal consultant Jack Palmer who claims the company sought his help to breach US immigration laws.
The legal action led to an investigation into Infosys' compliance with immigration laws, including a Senate subcommittee inquiry.
The company - which has publicly denied any wrongdoing - requested an arbitration from the court. However the judge denied this request, finding for Mr Palmer.
Arbitrations are the standard in-house practice for disputes at Infosys but the judge ruled that arbitration was not appropriate in this case due to Infosys' "superior bargaining power as an employer".
The American Visa Bureau is an independent migration consultancy specialising in helping people with their ESTA visa application.