US court finds Cognizant guilty of discrimination against non-Indians, company to appeal

Cognizant

A US district court has found Cognizant Technologies Solutions guilty of discrimination against non-Indians, adding the company’s conduct meets the standard for punitive damages.

The jury verdict in the decade-old class-action suit is based on a complaint by Washington, DC-based litigation boutique on behalf of employees who said they were discriminated against non-Indian workers. Some of the employees said they were terminated after the company put them on the bench.

“On the bench" is industry speak for an employee temporarily without a project but on the company's payroll, waiting for next assignment.

"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," a company spokesperson said.

The plaintiffs had proven that Cognizant is engaged in a pattern or practice of intentional discrimination against non-South Asian employees based on race and non-Indian employees based on national origin, both of whom were terminated from the bench, the court said.

Moneycontrol has reviewed the copy of the order of the United States District Court, Central District of California.

The class-action suit also claimed that the Teaneck-headquartered firm abused the H-1B visa process. H-1B visa, the majority of which are issued to Indians, is used to hire highly qualified workers in the US for speciality jobs by Cognizant and other IT companies.

The H-1B visa has emerged as a contentious political issue, with arguments that it has been misused to replace US workers by foreign nationals, while the tech industry relies on it heavily to bring in highly-skilled talent into the US.

“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 lawsuit alleged.