US lawsuit accuses TCS of favouring Indian and South Asian candidates – The Economic Times*

Clipped from: https://economictimes.indiatimes.com/tech/information-tech/us-lawsuit-accuses-tcs-of-favouring-indian-and-south-asian-candidates/articleshow/96171273.cms

Romita Majumdar

Editor, The Economic Times

Synopsis

The latest lawsuit accuses TCS of “knowingly and intentionally creating and maintaining an overwhelmingly disproportionate workforce in the United States that consists of approximately 70% South Asian employees (primarily from India).”

IT services major Tata Consultancy Services is facing a class action civil rights lawsuit in the US for discriminatory hiring practices from a former employee. Shawn Katz has filed a lawsuit against TCS seeking relief for alleged discrimination on the basis of race and national origin at the US District Court for the District of New Jersey, according to case details accessed by ET.

In the case filed last week (December 7) Katz has alleged that the IT major has engaged in a pattern or practice of discriminating against individuals who are not South Asian or Indian by favoring them in hiring and employment decisions. A class-action lawsuit is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group.

The complaint accused TCS of “knowingly and intentionally creating and maintaining an overwhelmingly disproportionate workforce in the United States that consists of approximately 70% South Asian employees (primarily from India).” The lawsuit claims that while only about 12% to 13% of the United States’ IT industry is South Asian, approximately 70% of TCS’s United States workforce is South Asian and is primarily composed of Indian employees who are in the US via work visas.

“Throughout the class liability period, TCS has used discriminatory policies and practices related to hiring, staffing, promotion, and termination described herein that have resulted in a disparate impact on non-South Asians and non-Indians who, as a result, are disproportionately not hired, not selected for positions, not promoted, benched, and/or terminated. These practices are neither job-related for the positions at issue nor consistent with business necessity,” stated the complaint.

“As per policy, we can’t comment on subjudice matters,” TCS said in response to queries.

The complaint claims that TCS’ talent acquisition strategies are designed to attract and favor Indian candidates. It further states that TCS offers better career growth opportunities to candidates on visas over non-Indian and non-South Asian candidates.

“Throughout the class liability period, TCS has used discriminatory policies and practices related to hiring, staffing, promotion, and termination described herein that have resulted in a disparate impact on non-South Asians and non-Indians who, as a result, are disproportionately not hired, not selected for positions, not promoted, benched, and/or terminated. These practices are neither job-related for the positions at issue nor consistent with business necessity,” said the complaint.

Katz, who worked with TCS for over 9 years, has claimed that he was fired for not finding right opportunities within the organisation due to a lack of assistance from the hiring teams that allocate employees to various projects.

In relief, the complainant has requested that TCS be prevented from engaging in unlawful employment practices and adopt non-discriminatory hiring practices. The complainant has also requested compensation for the damages.

In 2019, a California district court ruled in favor of TCS in a similar lawsuit filed by three former employees. The jury had rejected claims that the Indian IT firm preferred to staff its US offices with Indians instead of Americans.

Other Indian IT majors like Infosys, HCLTech and Wipro have also faced similar lawsuits in the country on various counts of discriminatory employement practices.

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