ABAB News Logo
Back to Flash News

Infosys: in discussions with the U.S. Department of Justice over an H-1B classification investigation

In its quarterly and half-year financial reports for the period ended September 30, 2026, Infosys disclosed that the U.S. Department of Justice (DOJ) is investigating how the company classified some H-1B visa-holding employees in immigration documents submitted to U.S. government agencies. The company said it is in discussions with the DOJ over this ongoing investigation and is also conducting an internal investigation.

The disclosure appeared in financial documents released around October 23, 2026. Infosys said it cannot predict the outcome of the investigation, nor assess whether it will have a material adverse effect on the company’s business and operating results. The documents did not say how many employees were involved, what specific classification issues were at issue, or what types of documents were involved, and they did not mention any allegations, fines, visa cancellations, or financial liability. The company had previously disclosed essentially the same investigation matter in documents from July 2025.

In 2013, Infosys reached a $34 million civil settlement with the U.S. Department of Justice to resolve allegations involving the use of B-1 business visas and I-9 employment eligibility verification records. The H-1B classification investigation is a separate matter. Around October 8, 2026, the U.S. Department of Labor separately announced a suspension of participation in the PERM permanent labor certification process for several technology companies, including Infosys, TCS, Wipro, HCL, Cognizant, Capgemini, Microsoft and Adobe, no longer accepting new applications or processing pending applications. The measure was announced by Labor Secretary Keith Sonderling and was related to a broader review of visa practices, but it was a different action from the DOJ investigation above.

Original sources:

  1. Title: Infosys in talks with US DOJ over H-1B employee classification probe Publisher: The Economic Times Publication date: 2026-10-26 URL: https://m.economictimes.com/nri/latest-updates/infosys-in-talks-with-us-doj-over-h-1b-employee-classification-probe/articleshow/135225388.cms Source nature: media report (citing the company’s financial disclosure) Verification status: key full-text passages read in this review Supported content: DOJ investigation into H-1B classification, company in discussions with DOJ and conducting internal investigation, outcome unpredictable, financial report cutoff date September 30, 2026

  2. Title: Infosys Says DOJ’s H-1B Visa Classification Investigation Is Ongoing Publisher: EconoTimes Publication date: 2026-10-26 URL: https://econotimes.com/Infosys-Says-DOJ-s-H-1B-Visa-Classification-Investigation-Is-Ongoing-1763558 Source nature: media report (citing the company disclosure and historical settlement) Verification status: key full-text passages read in this review Supported content: investigation ongoing, company cannot predict whether it will have a material impact, similar disclosure made in July 2025, 2013 $34 million settlement involved B-1 visas

  3. Title: US suspends TCS, Infosys, Wipro, HCLTech, Cognizant and three other firms from PERM green card programme Publisher: The Economic Times Publication date: 2026-10-09 URL: https://economictimes.indiatimes.com/nri/latest-updates/us-suspends-tcs-infosys-wipro-hcltech-cognizant-and-three-other-firms-from-perm-green-card-programme/articleshow/134799468.cms Source nature: media report (citing the Labor Department announcement) Verification status: key full-text passages read in this review Supported content: Labor Department suspended acceptance and processing of PERM applications by Infosys and other companies, involving several IT outsourcing and technology firms

ABAB AI Insight

Infosys disclosed a DOJ investigation into how H-1B visa holders were classified, rather than confirmed fraud allegations or criminal charges. The company is at the stage of discussions with the DOJ and an internal investigation, and the filing explicitly says the outcome cannot be predicted; it also did not disclose the number of employees involved or the details of the classification dispute. This is a separate matter from the 2013 B-1 visa settlement.

The PERM suspension is an independent administrative measure by the U.S. Department of Labor, targeting multiple companies including Infosys and suspending their path to green cards for foreign employees through permanent labor certification. The measure does not affect the validity of existing H-1B visas, but it will delay or block the process for relevant employees to obtain permanent residency through employer sponsorship. Both matters arose amid stepped-up scrutiny of H-1B and employment-based immigration practices in the United States, but the investigation and the administrative suspension differ in legal nature and enforcing authority.

For Infosys, the current public information is a disclosure of regulatory uncertainty, not confirmation of business disruption or fines. Key follow-up points include whether the DOJ investigation advances to formal charges or a settlement, the duration and scope of the PERM suspension, and whether the company adjusts the share of local hiring in its U.S. business.

ABAB News · Cognitive Law

  1. Disclosure of an investigation does not equal a finding of fraud; the outcome of the classification dispute still depends on subsequent DOJ action.

  2. The H-1B classification investigation and the PERM administrative suspension are parallel but independent regulatory actions.

  3. The 2013 settlement record does not automatically constitute established fact in the current investigation.