Infosys To Pay $800,000 Over Worker Misclassification, Tax Fraud Charges
Infosys is charged with misclassification of employees between 2006 and 2017 and it is asked to pay California $800,000 as a settlement amount for its wrongdoings but the top IT major of India has denied the allegations but agreed to pay the said amount.
Charges against Infosys
It was found that Infosys had approximately 500 employees working on Infosys-sponsored B-1 visas instead of H-1B visas. The California Attorney General Xavier Becerra claimed that India’s top IT major did so to avoid California payroll taxes like unemployment insurance, disability insurance and employment training taxes.
The attorney general said that the settlement proved that evading California law didn’t pay to Infosys. He alleged that the company brought employees on wrong visas to save taxes. Also, the workers were underpaid by the company. The settlement brings the company to justice. When asked about the wrongdoings, Infosys denied any wrongdoings.
It isn’t the first time that Infosys is made to pay for settlement. State of New York also charged the company with submitting wrong documents to federal authorities and made to pay $1 million towards settlement charges.
Whistleblower in California incident
Jack “Jay” Palmer, a former employee of Infosys, filed a lawsuit against the company in 2017. California decided to take action on his complaint and found Infosys to be violating the rules. The California incident came out in November but it was released to the media on Tuesday.