B-1 VISA VIOLATIONS: HOW UNAUTHORIZED EMPLOYMENT CREATES CORPORATE RISK MANAGEMENT CHALLENGES

Yasin Bilgehan Akalan
Attorney at Law
Immigration Law Expert – Akalan Law Firm

▶️ Introduction

The B-1 visa, also known as a business visitor visa, permits individuals to “conduct business,” but does not allow them to “work.” This subtle distinction is critical under U.S. immigration law, and misunderstanding it can lead to costly mistakes for companies. These statements refer to the B-1 visa, which is the subject of this article and is a central focus for organizations aiming to maintain strong corporate compliance programs.

In one example, the U.S. government alleged that a company employed individuals who had entered the United States on B-1 visas to perform jobs that actually required H-1B or other work-authorized visa categories. This type of visa violation falls under the scrutiny of agencies such as USCIS and CBP, which strictly define the scope of permissible activities under the B-1 category. Instead of litigating the allegations, the company agreed to pay 34 million dollars under a civil settlement (U.S. Department of Justice, 2013). (This settlement does not indicate an admission of wrongdoing; it merely shows that the allegations were resolved through a civil agreement.)

Thus, a strategy that may initially appear to be a quick and inexpensive solution can ultimately expose a company to a major immigration investigation, reputational harm, and potential legal sanctions.

For foreign nationals traveling to the United States temporarily for business purposes, the B-1 visa is a widely used entry document in international business development. However, the scope of this visa has been carefully defined and limited by U.S. Citizenship and Immigration Services (USCIS) and U.S. Customs and Border Protection (CBP). The B-1 visa authorizes individuals to “conduct business,” but it does not permit unauthorized employment. Misuse of the B-1 visa can lead to serious consequences for companies, ranging from project interruptions and damage to corporate reputation, to even criminal investigations.

For this reason, a strong B-1 compliance program has become essential for multinational corporations that operate in the United States or engage in business with U.S. entities, both for sustainability and effective immigration compliance and risk management.

▶️ B-1 Visa: Defining the Boundaries of Business Visitor Status

The B-1 visa, commonly referred to as a business visitor visa, is defined under U.S. immigration law, specifically within the Immigration and Nationality Act (INA). It falls within the category of a “temporary visitor,” meaning that the visitor’s entry into the United States is short-term and strictly for business-related purposes. Under this framework of business law, the scope of permissible activities has been clearly delineated by both USCIS and CBP.

Activities permitted under the B-1 visa include:

Conducting contract negotiations
Attending meetings
Negotiating purchase or sales agreements
Providing expert opinions (without receiving compensation)
Inter-company training (without receiving compensation)

These activities encompass active business conduct and decision-making. However, this scope does not include “work,” such as performing productive services on U.S. soil, providing services in exchange for wages in the United States, or engaging directly in activities that require work authorization from a U.S. employer.

USCIS guidelines explicitly state that a B-1 visa holder may not provide services to any local U.S. employer, may not engage in employment in the United States, and may not receive payment from a U.S. source. Engaging in prohibited activities may constitute a visa violation or unauthorized employment, both of which can trigger significant legal sanctions at the individual and corporate levels.

▶️How Unauthorized Employment on a B-1 Visa Leads to Visa Violations and Legal Sanctions

▶️ How Unauthorized Employment on a B-1 Visa Leads to Visa Violations and Legal Sanctions

In recent years, U.S. authorities have intensified their scrutiny, particularly in the technology, construction, and consulting sectors—regarding misuse of the B-1 visa as a form of “hidden labor.” Such misuse often results in visa violation findings and allegations of unauthorized employment, creating multifaceted exposure for corporations. Many companies, seeking to accelerate international projects or reduce costs, have allowed personnel traveling on B-1 visas to engage in activities such as technical support, software development, customer training, or on-site services in the United States. These activities fall outside the permissible scope of the B-1 category and represent significant deviations from immigration compliance requirements enforced by USCIS and CBP.

These practices expose both individuals and corporations to substantial legal and operational risks:

1.Individual Level:

Visa cancellation, removal orders, inadmissibility for future applications, and even arrest. Such outcomes complicate long-term mobility and carry severe personal consequences.

2.Corporate Level:

Immigration audits, contract termination, debarment from government projects, legal sanctions, civil settlement obligations, and reputational harm. These issues can trigger wider corporate risk considerations and necessitate robust corporate risk management strategies.

3.Project Level:

Operational disruptions, client loss, and damage to corporate reputation, all of which undermine operational continuity and increase overall project risk management requirements.

For example, a consulting firm allegedly employed individuals holding B-1 (tourist/business visit) visas in the United States despite declaring that they would not perform work but only visit. The company ultimately agreed to a civil settlement of 2.5 million dollars related to these allegations. (U.S. Immigration and Customs Enforcement, 2025). This case illustrates how risk management failures surrounding B-1 visa compliance can escalate into significant financial and legal consequences.

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▶️ How B-1 Visa Misclassification Leads to Unauthorized Employment Risks

The B-1 visa, also known as a business visitor visa, is designated for “business purposes,” there is a widespread misconception that it authorizes activities requiring work authorization. In many multinational corporations, HR teams or travel coordinators may classify short-term assignments in the United States as “meetings” or “client visits” and proceed with a B-1 application. However, U.S. immigration law requires authorities to evaluate the actual nature of the individual’s activities in the United States, not simply how they are labeled under internal HR policies or a corporate travel policy.

For instance, if an engineer travels not to “present a product” but to “perform repairs” or “develop code,” such activities fall outside the permissible scope of the B-1 visa and may constitute unauthorized employment. These actions can expose both the individual and the employer to visa violation findings, jeopardizing ongoing operations and international mobility plans connected to international business development.

Therefore, what matters is not merely “what is written on the application form,” but rather “what is actually done in the United States.”

▶️ Conclusion: The Role of the Business Visitor Visa in Global Risk Management Strategies

As global business collaborations continue to expand, partnerships with the United States have also increased. In this environment, strong immigration compliance is not merely a legal obligation under U.S. immigration law—it is a strategic necessity for preserving corporate reputation, ensuring operational continuity, and strengthening overall corporate risk management. When used correctly, the B-1 visa, also known as a business visitor visa, is a flexible and valuable tool for international business development. However, when misused, it can expose companies to significant regulatory and operational risks that undermine corporate stability.

Therefore, companies that operate in the U.S. market or conduct business with U.S. partners must enhance their awareness of B-1 requirements, update internal corporate compliance policies, and educate their employees on proper procedures. A strong B-1 compliance program not only reduces the likelihood of audits or enforcement actions but also reinforces the company’s commitment to ethical conduct, transparency, and effective risk management in a global business environment.

▶️ REFERENCES

U.S. Department of Justice. (2013). Infosys Limited agrees to settle allegations of systematic visa fraud and abuse of B-1 visas for $34 million.
https://www.justice.gov/usao-edtx/pr/indian-corporation-pays-record-amount-settle-allegations-systemic-visa-fraud-and-abuse

U.S. Immigration and Customs Enforcement (ICE). (2025). Indian management consulting firm agrees to $2.5 million global settlement in North Texas.
https://www.ice.gov/news/releases/indian-management-consulting-firm-agrees-25-million-global-settlement-north-texas

A business newspaper held in front of a glass building with the word VISA prominently displayed.

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