Infosys to pay $800,000 to settle “misclassification of workers & tax fraud” dispute in California

Settlement of misclassification of workers & tax fraud dispute against Infosys

As reported by PTI, “Infosys” has agreed to pay $800,000 (nearly Rs 5.6 Crores) to settle the misclassification of foreign workers and tax fraud.

California Attorney General Xavier Becerra announced a settlement of $800,000 against Infosys Limited.

Allegations against Infosys was that,

between 2006 and 2017 approximately 500 Infosys employees were working in California on Infosys-sponsored B-1 visas rather than H-1B visas.

Further, the above-mentioned misclassification resulted in Infosys avoiding California payroll taxes.

In the settlement, Infosys, however, denied the allegations and asserted of no wrongdoings.

Further, the company on Wednesday informed Indian stock exchanges that it has reached a settlement with California Attorney General.

In the regulatory filing, it said the case is being dismissed with prejudice and was reached to avoid the time, expense, and distraction of protracted litigation on allegations dating back more than 13 years.

California had initiated legal actions against Infosys after a complaint was filed by whistleblower Jack “Jay” Palmer, a former Infosys employee.


[Source: PTI]

[Image Credits: The Asian Age]

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