"Despite Judge Coody's earnest attempts to help both parties forge a settlement, today's mediation hearing was not successful. Our sights are now set on presenting the facts of this case in open court on August 20," an Infosys spokesperson said.
Palmer had alleged Infosys had subjected him to harassment and retaliation. Infosys has so far denied any harassment or retaliation. Infosys is also battling separate US government criminal probe on alleged visa and tax fraud following Palmer’s lawsuit.
The mediation was called for after the US federal judge hearing Palmer’s visa fraud allegation case against Infosys ordered a mediation conference to be convened on July 24 to settle the case. The offer of mediation was for the civil case between Palmer and Infosys, and not for the grand jury probe against Infosys for which the trial comes up in August.
A mediation conference is a process by which parties submit their dispute to a neutral third party who helps them reach a settlement.
The employee, Jack Jay Palmer, had alleged that Infosys was misusing B1 businesses visas issued by the US. B1 visas are issued for short-term business visitors and not for employees being sent onsite on work.
Palmer later told US news broadcaster CBS that the first thing to catch his attention was an employee that had been in the US from India several times before. He then began digging into how and why Infosys seemed to be bringing in large numbers of workers from its corporate headquarters in Bangalore into the US.
Palmer alleged the Indian workers on his team were paid substantially less than an American would have made in the same job. When the US State Department began to limit the number of H-1B visas, Palmer said Infosys began using another type of visa, the B-1.
The B-1 is meant for employees who are travelling to consult with associates, attend training or a convention. But Palmer said the employees were brought in not for meetings, but for full time jobs.
Infosys has earlier said in a statement televised by CBS that Palmer's “allegations make for an interesting story, but it is not the facts”. A judge and jury will have the final say on Palmer's accusations later this summer in an Alabama civil court case, it added.