US sees red in Infosys hiring; Demands $1 million to settle visa violation case

Infosys is alleged to have brought work force from India on visitors' visa, instead of work permit visa. Visitor visas are much easier to get and are not subject to the 65,000 cap on H-1B visas. IT personnel are alleged to have been brought from India without paying the prevailing wages or taxes owed.

According to various media channels, IT giant Infosys is planning to settle a visa violation case in the US at a cost of $1 million. The case relates to an investigation into its visa violation in the state. 

According to sources, Infosys, in the course of providing outsourcing services, regularly brings foreign IT personnel into New York to perform work in violation of the visa policies in the US. To be specific, it is said that IT personnel are brought from India without paying the prevailing wages or taxes owed. The company obtains B-1 visas, which are temporary visitors visas, instead of the work permit visa H-1B. It needs to be said that visitor visas are much easier to get and are not subject to the 65,000 cap on H-1B visas.

Meanwhile, the Attorney General of New York Eric Schneiderman 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."

Infosys, in an emailed statement to the Economic Times 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 centered on alleged paperwork errors, the company committed no wrongdoing and denies all allegations made in this regard."

The company is further said to have added, "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. Infosys maintains robust policies and procedures to ensure adherence with all applicable regulations and laws. Infosys will continue to focus on boosting American innovation, hiring American workers and better serving our valued customers across the United States."

It is also being said that New York's case relied on prior investigative work of the US Attorney's office. The statement issued by them said, "Infosys workers using B-1 visas were doing work that would otherwise have been performed by U.S. citizens or H-1B visa holders, and were paid significantly less than what comparable U.S. workers or H-1B visa holders would have been paid in the same positions. Consequently, New York was deprived of taxes that should have been paid on the higher wages that Infosys avoided by its misconduct. "

In a separate email statement issued to the Times of India, the company said, "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 US department of justice, and was reached by both parties to avoid protracted litigation. Infosys maintains robust policies and procedures to ensure adherence with all applicable regulations and laws. Infosys will continue to focus on boosting American innovation, hiring American workers and better serving our valued customers across the United States."

Four years ago, the IT giant was alleged to have paid  $34 million  in penalties to settle a visa fraud case and I-9 paperwork errors that were subject to investigation from the US justice department.

It was also revealed then, how Infosys issued memorandum to its workers as to how to evade the officials at the airport by avoiding talking about their profession.