In a landmark decision, a U.S. jury found Cognizant Technology Solutions Corp., a major technology service provider, guilty of discriminating against its non-Indian employees. This verdict was reached after a protracted legal struggle that stemmed from a 2017 class-action lawsuit alleging job bias within the company. The suit, initiated by three Caucasian former employees, accused the company of preferentially hiring South Asian employees, particularly those from India.
The plaintiffs detailed their grievances by claiming they were left without assignments for extended periods, a condition referred to as being on the “bench,” only to be replaced by colleagues from India who were ready to start immediately on visas. These allegations came to light after an inconclusive jury deliberation in Los Angeles, which eventually led to a federal judge denying Cognizant’s motion to have the lawsuit dismissed last month.
Reacting to the jury’s decision, Cognizant expressed its intent to appeal. Jeff DeMarrais, a spokesperson for Cognizant, stated, “We are committed to ensuring equal employment opportunities for every employee. Our diverse and inclusive workplace is designed to foster a sense of belonging where everyone can succeed and develop professionally.”
The scrutiny of Cognizant’s employment tactics goes beyond this case. Reports earlier in the year highlighted the company’s significant use of the H-1B visa program, a popular gateway for bringing skilled workers into the U.S. from abroad. Critics argue that the company has exploited the system to favor hiring from South Asia, impacting job opportunities for U.S. workers. Nevertheless, Cognizant maintains that it has scaled back its reliance on this program in favor of increasing its recruitment of U.S.-based employees.
Data from U.S. Citizenship and Immigration Services supports the claims against the company, indicating that Cognizant secured the highest number of H-1B visas granted to any U.S. employer from 2013 to 2019. This trend raises questions about the balance that firms maintain between leveraging international labor resources and prioritizing domestic workforce development.
The outcome of this lawsuit holds significant implications for the tech industry, particularly companies reliant on foreign labor through H-1B visas. It underscores the ongoing challenges and legal risk associated with employment practices that could potentially discriminate against U.S. workers.
Industry experts suggest that cases like this could drive a change in how tech companies manage and balance their labor force, possibly leading to more stringent regulations or shifts in corporate hiring strategies aimed at a more equitable treatment of all employees regardless of their nationality.
For now, the tech community and companies that depend heavily on H-1B visas await the ripple effects of this verdict, anticipating potential changes that could redefine recruitment and staffing strategies across the sector. As the debate around this issue continues, it remains to be seen how technology firms will adapt their practices to align with evolving legal and cultural expectations.