IT services and outsourcing provider Infosys agreed to a $1 million settlement with New York State over use of certain visa workers, New York Attorney General Eric Schneiderman announced.

The Attorney General’s office reported Infosys brought in workers on “B-1” visas for complex work that should have been done by H-1B visa holders or US citizens.

“B-1 visas are much easier to obtain. Because they apply only to visits, B-1 visa holders are not permitted to perform work of the kind Infosys workers were sent to New York to do, and they are not subject to the H1-B prevailing wage requirements,” according to the Attorney General’s office. “Infosys workers using B-1 visas were doing work that would otherwise have been performed by US citizens or H1-B visa holders, and were paid significantly less than what comparable US workers or H1-B visa holders would have been paid in the same positions.”

As a result, New York State missed out on taxes that should have been paid on the salaries of higher paid H-1B workers or US citizens, according to the office. Infosys allegedly provided instruction for workers entering on B-1 visas, including instructions to avoid talking about the work they were doing.

Livemint quoted an Infosys spokesperson as saying “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.”

H-1B visas, nonimmigrant visas that go to highly skilled temporary foreign workers such as IT specialists and doctors, can be difficult to get. The cap on H-1B visas was reached within one week this year for the fifth year in a row. H-1B visas have also been targeted by the government with reforms called for earlier this year.