A US jury has ruled that Cognizant Technology Solutions Corp. engaged in discriminatory practices against non-Indian employees, concluding that the IT firm should pay punitive damages to affected workers. The decision follows a lengthy legal battle stemming from a 2017 class-action lawsuit accusing the company of job bias.
The lawsuit was brought forward by three former employees who identified as Caucasian, alleging that Cognizant favoured South Asian workers in employment decisions.
According to the plaintiffs, they were placed on the "bench" for five weeks without work and eventually replaced by "visa-ready" employees from India. The Los Angeles case initially ended in a deadlocked jury, but the company’s attempt to have the lawsuit dismissed last month was denied by a federal judge.
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Cognizant expressed disappointment with the jury’s verdict and has indicated plans to appeal. In a statement, Jeff DeMarrais, a company spokesperson, said, “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.”
The ruling comes amid broader scrutiny of Cognizant's hiring practices. In July, Bloomberg News reported that the New Jersey-based outsourcing firm had been accused of exploiting loopholes in the H1-B visa lottery system. While Cognizant defended its compliance with US visa laws, it acknowledged an increase in US hiring and a reduced reliance on the H1-B programme in recent years.
Cognizant held the highest number of H-1B visas among US employers between 2013 and 2019, according to data from Citizenship and Immigration Services. The case's outcome may influence how companies balance their use of foreign labour programs and their treatment of domestic employees going forward.