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

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.

Notably, Kini's current petition is an appeal, as his first lawsuit earlier this year was dismissed, the report added.

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.

L-1A visas are reportedly less regulated than the skilled workers H-1B visas. H-1B visas have strict educational and wage requirements that the managerial visas do not require. 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.

The report added that of the 90,000 L-1A visas approved by the US Citizenship and Immigration Services (USCIS) between October 2019 to September 2023, TCS comprised over 6,500. The number is larger than the next six companies combined, it added.

Further, the Bloomberg investigation report also said that TCS reported significantly fewer managers in its US operations compared to the number of L-1A visas obtained. It cited TCS' 2022 Equal Employment Opportunity Commission (EEOC) report, which stated the company had fewer than 600 executive or managerial positions among its 31,000 strong US worker base.

TCS ‘Strongly Refutes’ Allegations

In a statement, a spokesperson for TCS said, “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.”