'US may be violating own laws on wages for its Indian staff'

Thus, American diplomats would be in violation of US law of minimum wages since their residences as well as the embassy and consulates are treated as American territory.  

Even if they provide legal justifications and claim exemption from US laws for the salaries being paid to Indian employees, the public disclosure of such payment practices by US Embassy and diplomats in their personal capacities is likely to deeply embarrass the US.

The US insists on high hourly wages for Indian diplomats employing maids but pays much lower salaries to Indians being employed by its own Embassy and diplomats in India for similar work.

There was no immediate response from the US Embassy when contacted by PTI.

The government's reaction to set up the special group, comprising inter-divisonal experts, including from legal, financial and human resources departments of MEA, to assess and monitor the inputs sought by the governments came after Khobragade, the 39-year-old 1999-batch IFS officer, was arrested in New York on December 12.

Khobragade is accused of making false declarations in a visa application for her maid Sangeeta Richard.

The diplomat's arrest and subsequent treatment had sparked an outrage in India which demanded an apology and dropping of all charges against her.