U.S. jury finds Cognizant discriminated against non-Indian workers
NEW JERSEY, UNITED STATES — A United States jury recently ruled that Cognizant Technology Solutions engaged in discriminatory employment practices against non-Indian workers, favoring H-1B visa holders from India.
This verdict follows a lengthy legal battle that began in 2013, with a class-action lawsuit filed in 2017 alleging racial and national bias.
Claims of bias in employment practices
The lawsuit claims that Cognizant, a significant player in the IT services sector, favored South Asian employees, particularly those from India, over other workers. Plaintiffs highlighted that while only about 12% of the U.S. IT industry is South Asian, at least 75% of Cognizant’s U.S. workforce comprises South Asians, primarily from India.
The complaint further alleges that Cognizant maximized its H-1B visa applications by claiming the need for jobs that did not exist.
Impact on non-Indian workforce
According to the allegations, Cognizant’s preference for staffing visa holders in U.S. positions reduced competition from non-South Asians residing in the U.S.
The complaint also suggests that non-South Asians were often replaced by “visa-ready” individuals and disproportionately placed on the “bench” — a status given to employees waiting for new client assignments.
Furthermore, it claims that non-South Asians faced higher termination rates when benched for more than five weeks compared to their South Asian counterparts.
Historical context of H-1B visa use
Bloomberg recently reported that Cognizant had the highest number of H-1B visas among U.S. employers from 2013 to 2019.
This case highlights ongoing concerns about fair employment practices within tech companies reliant on H-1B visa holders.
Cognizant denies allegations
Cognizant has denied the allegations and expressed disappointment with the jury’s decision.
In an interview with The Register, a company spokesperson stated, “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.”
The company plans to appeal the verdict vigorously.
Broader implications for the tech industry
As Cognizant prepares its appeal, this verdict serves as a significant reminder of the legal responsibilities companies face regarding equitable employment practices and compliance with U.S. civil rights laws.
The outcome of this case could have broader implications for how tech companies manage their workforce diversity and visa-related hiring practices in the future.
