Explorer

Infosys To Pay USD 800K To Settle Worker Misclassification, Tax Fraud Charges

Infosys, India's top IT major, has agreed to pay USD 800,000 to settle allegations of misclassification of foreign workers and tax fraud, officials announced Tuesday.

Washington:  Infosys, India's top IT major, has agreed to pay USD 800,000 to settle allegations of misclassification of foreign workers and tax fraud, officials announced Tuesday. Infosys will pay California USD 800,000 (nearly Rs 56 crore) to resolve allegations that between 2006 and 2017, approximately 500 Infosys employees were working in the State on Infosys-sponsored B-1 visas rather than H-1B visas, California Attorney General Xavier Becerra said. This misclassification resulted in Infosys avoiding California payroll taxes such as the unemployment insurance, disability insurance, and employment training taxes. H-1B visas also require employers to pay workers at the local prevailing wage, an official statement said. "Today's settlement shows that attempting to evade California law doesn't pay. Infosys brought in workers on the wrong visas in order to underpay them and avoid paying taxes. With this settlement, California has been made whole," Becca said. In the settlement, Infosys, however, denied the allegations and asserted of no wrongdoings. In 2017, Infosys had agreed to pay the State of New York USD 1 million to settle allegations of submitting wrong documents to federal authorities. The Californian settlement that was carried out in November was released to the media on Tuesday. California initiated legal actions against Infosys after a compliant was filed by whistleblower Jack "Jay" Palmer, a former Infosys employee. Palmer has sued the Indian company in 2017.

Top Headlines

Top 5 Highest Dividend-Paying Stocks In FY26: Do You Own Any?
Top 5 Highest Dividend-Paying Stocks In FY26: Do You Own Any?
Rule Changes From August 1, 2026: LPG Prices, Bank Holidays, Tatkal Tickets, ITR, And More
August 1 Rule Changes: LPG Price Revision, Bank Holidays, RBI Policy, ITR Deadline And More
Stock Markets End Higher As Sensex Rises Over 800 Points Nifty Tests 24,300
Stock Markets End Higher As Sensex Rises Over 800 Points Nifty Tests 24,300
India's Industrial Output Rises 7.3% In June As Manufacturing Growth Strengthens: Report
IIP Data: Manufacturing Output Climbs 7.8% As Industrial Growth Picks Up In June

Videos

LOK SABHA DEBATE: Opposition Questions NTA Over Paper Leak Issue, Demands Major Exam Reforms
Student Protest: CGPK Founder Abhijeet Deepak Warns of Fresh Protest Over Student Issues
Punjab Politics: Congress Protests Against Punjab Government Over Alleged Paper Leak Cases
Political Protest: Samajwadi Party Targets Government Over Ram Temple Donation Allegations
Parliament Strategy: Opposition Raises Anti-Defection Law Debate Amid Parliament’s Paper Leak Discussion

Photo Gallery

25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Embed widget