Infosys To Pay $1 Million Fine To New York In Visa Violation Case

New Delhi: IT major Infosys has reached a settlement for USD 1 million with the state of New York in a visa-related case, even though the company maintained it committed no wrongdoings and the probe was centred on alleged paperwork errors.

In a statement, New York Attorney General Eric T Schneiderman today said a USD 1-million settlement with the Indian IT firm has been reached to conclude the investigation.

While, the Bengaluru-based company in its statement said, "Infosys' agreement concludes the State of New York's investigation relating to the amount of taxes the company paid in 2010-2011 without any criminal or civil charges being filed.

"While this investigation centred on alleged paperwork errors, the company committed no wrongdoing and denies all allegations made in this regard."

The software services giant said this settlement relates to legal issues already resolved under the 2013 settlement with the US Department of Justice and was reached by both parties to avoid protracted litigation.

Mr Schneiderman today "announced USD 1 million settlement with Infosys Corporation...that failed to properly compensate hundreds of workers and to pay applicable taxes, by systematically abusing the US visa rules in placing foreign workers at client sites in New York State."

The settlement resolves whistleblower claims that "Infosys Corporation, 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," the New York Attorney General said.

He further said, "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."

The investigation of attorney general also found that "in addition to securing employment of foreign workers at a much lower wage than applicable prevailing wage requirements, Infosys also avoided paying applicable payroll taxes".

The announcement has come a day before Infosys' Annual General Meeting.