Infosys Settles Visa Case With New York
24 June 2017 - 06:16AM
Dow Jones News
By Douglas MacMillan
Indian outsourcing giant Infosys Ltd. agreed to pay $1 million
to settle claims that it placed foreign workers in jobs in New York
without obtaining proper visas or paying high enough wages or taxes
for their work, the state's attorney general said Friday.
The Bangalore-based company previously paid $34 million to
settle allegations brought by the U.S. Department of Justice that
it systematically abused U.S. visa regulations by bringing foreign
workers into the country on part-time travel visas, rather than
standard H-1B work visas, in 2010 and 2011.
New York pursued Infosys for allegedly depriving the state of
taxes it would have collected had the company paid higher wages to
foreign workers, a spokesman for the state's attorney general said
in a statement.
In a statement, Infosys said it committed no wrongdoing and
denies all the allegations brought by New York Attorney General
Eric Schneiderman. "Infosys maintains robust policies and
procedures to ensure adherence with all applicable regulations and
laws," the company said in a statement.
The settlement comes amid growing scrutiny of Indian tech firms
for their heavy use of the H-1B visa program for highly skilled
foreign workers. President Donald Trump has criticized the
practices of firms like Infosys and Tata Consultancy Services Ltd.,
the two largest Indian IT services firms by revenue, arguing the
tens of thousands of workers they send to the U.S. every year could
be taking jobs away from Americans.
Infofys earlier this year warned of slower revenue growth than
expected due to the increasing scrutiny of worker visas. The
company announced plans to hire some 10,000 American workers in the
U.S. over the next two years to help serve clients in the financial
services, manufacturing, retail and other sectors.
Write to Douglas MacMillan at douglas.macmillan@wsj.com
(END) Dow Jones Newswires
June 23, 2017 16:01 ET (20:01 GMT)
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