India’s second largest IT exporter Infosys has agreed to pay $1 million to settle a visa violation case to the New York State in the U.S.
The Attorney General Eric T. Schneiderman of New York State announced a $1 million settlement with Infosys Corporation that failed to properly compensate hundreds of workers and to pay applicable taxes, by systematically abusing the United States visa rules in placing foreign workers at client sites in New York State.
The AG also said that the settlement resolves whistle-blower claims that Infosys, in the course of providing outsourcing services, routinely brought foreign IT personnel into New York to perform work in violation of the terms of their visas.
“We will not permit companies to violate our laws in order to undercut New York workers. My office is committed to ensuring that our state’s labor marketplace is fair, competitive and transparent for all,” said Attorney General Mr. Schneiderman in a press release.
The statement also said that Infosys workers using B-1 visas were doing work that would otherwise have been performed by U.S. citizens or H1-B visa holders, and were paid significantly less than what comparable U.S. workers or H1-B visa holders would have been paid in the same positions.
Infosys in a statement said the agreement concludes the State of New York’s investigation relating to the amount of taxes it paid in 2010–2011 without any criminal or civil charges being filed.
“While this investigation centered on alleged paperwork errors, the company committed no wrongdoing and denies all allegations made in this regard. This settlement relates to legal issues already resolved under the 2013 settlement with the U.S. Department of Justice, and was reached by both parties to avoid protracted litigation,” it stated in the statement.
Earlier in 2013, Infosys had agreed to pay $34 million to settle allegations about its alleged violations of U.S. visa regulations.
