Infy pays $1 mn to New York state to settle visa violations

Infosys has made $1-million settlement with the New York state after it was found that it violated US visa rules by placing employees on a different visa at its clients’ offices in the state.

The settlement was announced on Friday by Attorney General Eric T Scheiderman saying it resolves whistleblower 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.

Infosys sent workers from India to its clients in the US visa on B1 visa instead of the H1B visas that has more restrictions and wage requirements, the Attorney General's office said. “We will not permit companies to violate our laws in order to undercut New York workers,” said Schneiderman.

In addition to securing employment of foreign workers at a lower wage, Infosys avoided paying applicable payroll taxes on the wages of the foreign workers it improperly placed at New York client sites, it said.