A U.S. jury has convicted Cognizant, a U.S.-based IT company, of discriminating practices against non-Indian workers. The court determined that the IT behemoth demonstrated a pattern of ongoing prejudice against this group. As a result, the jury demanded Cognizant to pay punitive damages to redress the employees harmed by these actions.
As per various accounts, the jury’s verdict came from a class action lawsuit alleging that the technology firm misused the H-1B visa process, which is for skilled workers.
Allegations in the Lawsuit Against Cognizant
The case is Palmer v. Cognizant Tech. Solutions Corp., 17-cv-06848, US District Court, Central District of California (Los Angeles). The ruling follows a 2017 job-bias class-action lawsuit, claiming the improper use of the H-1B visa program and favoring South Asians in recruitment decisions.
The lawsuit initiated with three employees identifying as “Caucasian” arguing that Cognizant prioritizes the recruitment of “visa-ready” individuals from India. They asserted that during the procedure the business terminated employees who had been “benched” and were given no work for five days. The plaintiffs further claimed that these freshly hired employees subsequently took their positions in numerous U.S. assignments and projects
As per the lawsuit, “Cognizant has used policies and practices related to hiring, promotion, and termination of individuals that have had a disparate impact on the basis of national origin and race (harming those who are not of South Asian race or Indian national origin) that are neither job-related for the positions at issue nor consistent with business necessity.”
The matter had previously gone to trial, but the jury standoff as they couldn’t reach a verdict. Nevertheless, the jury this time ruled in the plaintiff’s favor. The court reached a judgment mentioning the IT company’s discrimination against non-Indian employees. It potentially hired South Asian staff, many of whom were on H-1B visas, to the detriment of non-Indian employees.
H-1B Visa
In July, Bloomberg News reported that Cognizant was among numerous outsourcing companies taking advantage of flaws within the H-1B visa lottery system. Quashing the claims, the company argued that it complies fully with US visa laws. Furthermore, Cognizant emphasized that it made efforts in recent years, to reduce the reliance on the H-1B program. It is emphasizing more on U.S. hiring.
The Bloomberg report also claims, citing the Citizenship and Immigration Services, that from 2013 to 2019, Cognizant granted the most H-1B visa to any US employer.
How Cognizant Reacted?
Amid the allegations, Cognizant voiced disappointment with the order and announced intentions to appeal against the judgment.
“Cognizant is disappointed with the verdict and plans to vigorously defend itself and appeal at the appropriate time. We provide equal employment opportunities for all employees and have built a diverse and inclusive workplace that promotes a culture of belonging in which all employees feel valued, are engaged and have the opportunity to develop and succeed. Cognizant does not tolerate discrimination and takes such claims seriously,” Cognizant spokesperson Jeff DeMarrais said in a statement.
Legal Battles of Cognizant
In the past year, the American company has encountered several legal challenges. The most recent case arose in August when Cognizant TriZetto sued India’s second-largest IT services provider, Infosys. The company charged Infosys with stealing trade secrets related to its healthcare insurance software. Additionally, approximately nine months prior, Infosys wrote to Cognizant, alleging involvement of the US firm in unfair employee poaching.
In July, Cognizant, along with another executive resolved a protracted legal dispute involving Wipro, another Indian rival, and its current chief financial officer (CFO) Jatin Dalal. As a part of the agreement to resolve Wipro’s allegation of violation of the employment contract, Dalal was compensated with almost $505,087 (around Rs 4 crore) along with reimbursement for his legal fees.
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Naina Jaggi is an author deeply rooted in Journalism, mainly writing on lifestyle, entertainment, travel, politics and financial markets. This diverse experience has allowed her to blend rich details with engaging narratives that capture the essence of various worlds. When she is not crafting tales, you’ll find her immersed in music and enjoying the company of dogs. She is also into K-dramas, thriller and horror movies that fuel her imagination, bringing the same spark to her stories.
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