Los Angeles — A U.S. jury has ruled that Cognizant Technology Solutions Corp. must pay punitive damages after finding the company engaged in discriminatory practices against non-Indian employees. The verdict arrived following a failed attempt by the IT giant last month to have a job bias class-action lawsuit dismissed. The case, which centers on allegations of employment discrimination at the New Jersey-based company, hints at broader industry practices surrounding visa regulations and hiring.
The lawsuit began with claims from three employees who said they were laid off after being placed on a no-work status and then replaced by workers from India with ready visas. Representing broader concerns, this case spotlights the significant reliance of some firms on the H-1B visa program, which is often criticized for its potential for misuse in favor of hiring cheaper foreign labor over domestic employees.
In defense, Cognizant spokesperson Jeff DeMarrais expressed disappointment with the jury’s decision and indicated plans to appeal. He emphasized the company’s commitment to an equitable workplace environment. “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,” said DeMarrais.
Previously, reports had surfaced accusing Cognizant and other outsourcing companies of exploiting loopholes in the H-1B visa lottery system, allegations that the company has consistently denied. Cognizant argues that it complies fully with U.S. laws and has in recent times increased its hiring within the U.S. while scaling back its dependence on the H-1B visa scheme.
Notably, from 2013 to 2019, Cognizant received more H-1B visas than any other U.S. employer according to data from Citizenship and Immigration Services. This detail underscores the company’s heavy investment in the visa program, which is a central issue in the ongoing litigation.
The legal challenge was first launched in 2017 and was recently revived when proceedings from a previous trial, which ended with a deadlocked jury, allowed the case to proceed. The current decision could signal a significant shift in how companies like Cognizant operate within the legal boundaries of employment and visa law in the United States.
The case, officially known as Palmer v. Cognizant Tech. Solutions Corp., was heard in the U.S. District Court, Central District of California. As the legal process continues, the implications for Cognizant and similar companies could be far-reaching, potentially influencing corporate behaviors and regulatory frameworks governing employment practices in the tech industry.
Additionally, the outcome of this lawsuit and subsequent appeals may well shape public and legislative scrutiny of visa programs like H-1B, which have been pivotal in the staffing strategies of global technology services companies but also a point of contention in discussions about the rights and protections of U.S. workers versus those of foreign nationals.
As the situation develops, stakeholders from across the technology services sector and beyond will be watching closely, gauging the impact of this case on future employment and immigration policy in an industry already at the nexus of global labor dynamics and domestic employment laws.