Jury Finds Cognizant Discriminated Against Non-Indian Workers in Silicon Valley

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A U.S. district court jury has determined that technology giant Cognizant allegedly discriminated against non-Indian workers in Silicon Valley. The case, part of a class-action lawsuit, accused the company of misusing the H-1B visa program, which is designed to allow foreign workers with specialized skills to work in the United States. The lawsuit also claimed that non-Indian employees were systematically sidelined and eventually terminated, in favor of Indian workers.

Reports indicate that the jury found Cognizant guilty of discriminatory practices and has called for punitive damages to be levied against the company. The lawsuit accused Cognizant of ousting many non-Indian employees through a process referred to as “benching,” a term used to describe the practice of placing workers on hold without active projects. Once benched, the employees were reportedly kept without work and eventually fired under a company policy that facilitated their removal. According to *Siliconvalley.com*, these allegations formed the core of the class-action case, which was supported by testimonies from affected workers.

Cognizant expressed its disappointment with the jury’s decision and announced plans to challenge the ruling. In an official statement, the company 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 tech firm also emphasized that it does not condone any form of discrimination, asserting that it takes such accusations very seriously.

However, the lawsuit’s claims paint a different picture. It argued that Cognizant has long engaged in hiring, promotion, and termination practices that disproportionately harmed non-Indian and non-South Asian workers. These practices, according to the lawsuit, were neither justified by the job requirements nor necessary for the business. The crux of the complaint was that Cognizant’s actions unfairly favored Indian and South Asian employees, often to the detriment of others.

The H-1B visa program, central to the lawsuit, is a highly competitive and contentious system that allows U.S. companies to hire foreign workers in specialty occupations such as engineering, IT, and other technical fields. Cognizant, like many other tech companies, is a frequent user of the H-1B system, regularly securing hundreds of visas annually to bring in Indian workers for roles in the Bay Area. In fact, 2023 data revealed that Cognizant placed H-1B visa holders at major tech firms in the region, including industry giants like Google, Meta (formerly Facebook), and Apple. Additionally, Cognizant’s H-1B holders were found working at non-tech companies such as PG&E, Kaiser Permanente, and Walmart.

The company’s reliance on the H-1B visa program has led to concerns about its impact on American workers, especially those from non-Indian backgrounds. The class-action lawsuit alleged that Cognizant’s employment policies were designed in such a way that they created a disparate impact based on national origin and race. This legal argument hinges on the idea that Cognizant’s internal policies and practices were not directly related to the qualifications or requirements of the job but rather served to discriminate against workers who were not of Indian or South Asian descent.

The class-action suit was brought forward by a Washington, DC-based law firm on behalf of several former Cognizant employees who claimed to have been discriminated against due to their nationality and race. The firm has been vocal in its stance that the tech industry, and Cognizant in particular, must be held accountable for engaging in unfair labor practices that disadvantage certain groups of workers.

Despite the jury’s ruling, Cognizant remains adamant that it has a strong commitment to maintaining a workplace environment that is inclusive and free of discrimination. In its statement following the verdict, the company reiterated, “Cognizant does not tolerate discrimination and takes such claims seriously.” It added that it will appeal the verdict, aiming to reverse the jury’s decision through the legal process.

The allegations and subsequent lawsuit underscore a broader issue within the tech industry: the tension between employing foreign workers through programs like H-1B and the perception, or reality, that these programs may disadvantage domestic workers. While companies argue that H-1B visas are essential for filling specialized roles that cannot be sourced locally, critics contend that these programs often lead to wage suppression and unfair employment practices.

Cognizant’s situation is not an isolated one. Over the years, numerous tech companies have been scrutinized for their use of H-1B visas and for alleged discrimination in hiring and promotion practices. However, the Cognizant case has drawn significant attention due to the scale of the allegations and the number of workers potentially affected. As one of the largest users of the H-1B visa system, Cognizant’s practices set a precedent for how other tech companies might navigate the fine line between employing skilled foreign workers and ensuring fair treatment for all employees, regardless of nationality or race.

The H-1B visa system itself is often at the center of political debate, with proponents arguing that it helps American companies stay competitive by allowing them to bring in top talent from around the world. Opponents, on the other hand, argue that the program is frequently abused and that it disproportionately benefits companies that want to hire cheaper labor from abroad rather than pay higher wages to domestic workers. These concerns are amplified in the tech sector, where there is a constant demand for highly specialized skills, and where the competition for qualified workers is fierce.

As Cognizant prepares to appeal the verdict, the outcome of this case could have far-reaching implications for both the company and the wider tech industry. If the appeal is unsuccessful, Cognizant may face significant punitive damages, and the case could set a legal precedent for how tech companies are expected to handle their hiring and employment practices in relation to foreign workers. Moreover, it could prompt further scrutiny of the H-1B visa program and how it is used by major corporations.

For now, the jury’s decision has sparked a conversation about the balance between maintaining a diverse workforce and ensuring that all employees, regardless of their background, are treated fairly and equitably. As Cognizant continues its legal battle, the outcome of this case will likely be closely watched by both tech industry insiders and policymakers alike. The final decision could shape not only the future of Cognizant but also the practices of many other tech firms that rely on foreign labor to meet their staffing needs.

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