The US government has opened an investigation against two of the biggest Indian outsourcing companies for possible H1-B visa violations. The move by the US Labour Department comes days after the New York Times had reported that hundreds of employees at entertainment giant Walt Disney were laid off and replaced with Indians holding H1-B visas.

Shares of Tata Consultancy Services Ltd (TCS) and Infosys Ltd fell slightly after the release of news report about the investigation. Indian outsourcers are one of the biggest recipients H1-B visas which are intended for highly skilled workers. TCS and Infosys derive their biggest share of revenues from US markets.

Tidbits

• The H-1B is a non-immigrant visa in the United States under the Immigration and Nationality Act, section 101(a)(15)(H).
• It allows U.S. employers to temporarily employ foreign workers in specialty occupations.
• If a foreign worker in H-1B status quits or is dismissed from the sponsoring employer, the worker must either apply for and be granted a change of status to another non-immigrant status, find another employer, or leave the US.
• The duration of stay is three years, extendable to six years.