**Cognizant and Former Employee Seek Court Review Over Visa Fee Claims**
Cognizant Technology Solutions Corp, alongside a former employee acting as a whistleblower, is petitioning a U.S. Court to review a lower court’s order that requires investigations into allegations of unpaid visa fees and taxes owed to the U.S. government. This legal maneuver could potentially streamline the process and lead to a settlement, depending on the court’s decision.
The origins of this case trace back to 2023 when Jean-Claude Franchitti, representing the U.S. government, accused Cognizant of deliberately concealing and misusing visa applications. Franchitti claims that the company brought employees to the U.S. on alternative visas, such as L-1 and B-1, instead of H-1B visas, which would have incurred higher filing fees. This practice allegedly resulted in a loss of significant revenue for the government, with Franchitti estimating that Cognizant deprived the government of $1,000 to $6,300 in filing fees per visa.
Currently, the application fees for H-1B, L-1, and B-1 visas are $6,460, $5,460, and $160, respectively. H-1B visas are designed for skilled immigrants filling specialized roles, while L-1 visas cater to managerial transfers, and B-1 visas are intended for short business visits.
Cognizant is among the largest users of H-1B visas in the U.S., having secured 3,172 such visas in the last fiscal year, ranking it as the eighth-largest user. Tata Consultancy Services (TCS) is the only other major Indian IT firm that has utilized more H-1B visas.
This case is not an isolated incident; other Indian IT outsourcing companies, including TCS, Infosys, and HCL Technologies, have faced similar legal challenges regarding visa violations. Franchitti further alleged that Cognizant paid its H-1B employees below the legally mandated minimum wage, which also impacted payroll tax revenues for the government.
As the situation unfolds, the implications for Cognizant and the broader IT outsourcing industry could be significant, particularly regarding compliance with U.S. immigration laws and the financial responsibilities associated with visa applications.
**FAQ**
**What are the main allegations against Cognizant?**
Cognizant is accused of concealing visa applications and misusing alternative visa types to avoid higher fees associated with H-1B visas, resulting in financial losses for the U.S. government.
