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Infosys to settle visa violation case in California for $800,000

Infosys has denied the allegations and asserted of no wrongdoings. | File

Infosys has denied the allegations and asserted of no wrongdoings. | File   | Photo Credit: Somashekar G.R.N.

Its employees had worked there on B-1 visas rather than H-1B

Tech major Infosys will pay California a sum of $800,000 to settle visa related allegations.

Attorney General, State of California Department of Justice, Xavier Becerra said an $800,000 settlement was announced against Infosys and its BPM (business process management) subsidiary. Some 500 Infosys employees were working in the state on Infosys-sponsored B-1 visas rather than H-1B visas between 2006 and 2017, as per an official post available on the website of State of California.

Avoided taxes

This misclassification resulted in Infosys avoiding California payroll taxes such as the unemployment insurance, disability insurance, and employment training taxes. H-1B visas also require employers to pay workers at the local prevailing wage, the post said.

“Today’s settlement shows that attempting to evade California law doesn’t pay,” said Attorney General Becerra. “Infosys brought in workers on the wrong visas in order to underpay them and avoid paying taxes. With this settlement, California has been made whole.”

Responding to the settlement announcement, Infosys said, “Infosys’ agreement concludes the California Attorney General’s investigation into allegations related to the payment of state payroll taxes for some employees travelling on B-1 visas dating back to 2006.”

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Printable version | Feb 20, 2020 6:55:23 AM | https://www.thehindu.com/news/international/infosys-to-settle-visa-violation-case-in-california-for-800000/article30335612.ece

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