TCS ex-employee alleges ‘visa fraud’, claims ‘gaming system’ to bypass H-1B rules and US labour laws, says report | Company Business News

A whistleblower ex-employee from Tata Consultancy Services (TCS) has alleged that the Indian IT major was “gaming the system” and committing “visa fraud” to bypass United States labour laws and H-1B visa rules, Bloomberg reported.

Anil Kini, who was an IT manager at TCS’ Denver office has alleged that he was ordered to falsify internal organisational charts and misclassify employees as a coverup by executives, according to the report.

Livemint could not independently verify the report.

What are the Allegations against TCS?

Kini told the publication that TCS mislabeled frontline workers as managers to use the L-1A visas to bring them to the US. He said the practice began during the first Donald Trump administration in 2017, when rules employment visa rules were tightened.

He accused seniors of instructing him to falsify internal organisational charts and misrepresent frontline employees as managers in order to bypass scrutiny over the visa requirements, the report said.

Kini is among a few other former TCS employees who have filed federal lawsuits against the company under the False Claims Act.

L-1A Visas vs H-1B Visas for US Employment

Anil Kini, along with two other former TCS employees, filed lawsuits under the federal False Claims Act, accusing the company of exploiting the L-1A visa system, the report said. These visas, intended for managerial transfers, are less regulated than H-1B skilled-worker visas, which have stricter wage and educational requirements. Anil Kini’s lawsuit was dismissed earlier this year, but he has appealed the decision, it added.

Alleged discrepancies in visa approvals, managerial positions

Between October 2019 and September 2023, the US Citizenship and Immigration Services (USCIS) approved more than 90,000 L-1A visas, primarily utilised by IT outsourcing firms to manage information technology tasks for US employers.

Notably, TCS led these approvals, securing more than 6,500 L-1A visas—surpassing the combined total of the next seven largest recipients. During this period, TCS reported significantly fewer managers in its US operations compared to the number of L-1A visas obtained, Bloomberg reported.

In its 2022 report to the Equal Employment Opportunity Commission (EEOC), TCS indicated that out of 31,000 US-based employees, fewer than 600 held executive or managerial positions. Yet, in the same fiscal year, the company received approvals for 1,969 new or renewed L-1A manager visas. Similarly, in 2021, TCS reported 564 executives and managers in the US but obtained 1,447 L-1A visa approvals, the report added.

TCS has firmly denied any misconduct. “TCS does not comment on ongoing litigation, however we strongly refute these inaccurate allegations by certain ex-employees, which have previously been dismissed by multiple courts and tribunals. TCS rigorously adheres to all US laws,” a company spokesperson was quoted as news saying by the news outlet.

Immigration attorneys warn that falsifying job titles to secure L-1A visas for employees who are not managers constitutes a violation of the Immigration and Nationality Act. They point out that insufficient federal enforcement has allowed some employers to exploit this loophole.

As Kini’s appeal progresses, the case underscores ongoing concerns about visa fraud and the impact of outsourcing firms on the US labour market.