Infosys Fined USD 800,000 To Settle Misclassification Of Foreign Workers As Well As Tax Fraud In The United States
By Bobby Anthony Infosys has agreed to pay USD 800,000 (approximately Rs 56 crore) to the state of California in the United States, to settle allegations of misclassification of foreign workers and tax fraud, according to California Attorney General Xavier Becerra.“Today's settlement shows that attempting to evade California law doesn't pay. Infosys brought in workers on wrong visas in order...
Infosys has agreed to pay USD 800,000 (approximately Rs 56 crore) to the state of California in the United States, to settle allegations of misclassification of foreign workers and tax fraud, according to California Attorney General Xavier Becerra.
“Today's settlement shows that attempting to evade California law doesn't pay. Infosys brought in workers on wrong visas in order to underpay them and avoid paying taxes. With this settlement, California has been made whole,” Becca said.
However, in the settlement, Infosys denied the allegations and asserted no wrongdoing.
Earlier, the state of California had initiated legal action against Infosys after a complaint was filed by a former Infosys employee turned whistleblower, Jack “Jay” Palmer.
Allegedly, between 2006 and 2017, approximately 500 Infosys employees were brought to work in California on Infosys-sponsored B-1 visas rather than H-1B visas.
This misclassification resulted in Infosys avoiding California payroll taxes such as unemployment insurance, disability insurance, as well as employment training taxes.