Cognizant Found Guilty of Workplace Discrimination

A United States jury has determined that Cognizant Technology Solutions engaged in discriminatory practices toward non-Indian employees within its workforce. Consequently, the jury has ordered the IT services company to compensate the affected individuals. This ruling follows a class-action lawsuit initiated in 2017 that accused the company of demonstrating a preference for South Asian workers in its hiring processes.

The case, originating from complaints by three workers identifying as “Caucasian,” involved allegations that Cognizant preferred hiring “visa-ready” employees from India. These employees allegedly took over the roles of those who had been “benched”—a term used for employees without work assignments for five weeks—resulting in their termination. The lawsuit claimed these actions were aligned with discriminatory employment practices that favored South Asian workers over others in the United States.

In response to the verdict, a Cognizant spokesperson, Jeff DeMarrais, released a statement expressing the company’s disappointment and the intent to appeal. DeMarrais emphasized, “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 legal proceedings have revealed broader concerns about the use of visa programs by major outsourcing firms. In July, Bloomberg reported that Cognizant was among various companies exploiting specific aspects of the H1-B visa lottery system, a charge that the company has disputed. Cognizant maintains that it adheres strictly to U.S. laws governing the H1-B visa process and highlights its efforts to boost domestic hiring, thereby reducing reliance on the H1-B program. Notably, from 2013 to 2019, Cognizant reportedly secured the highest number of H1-B visas among U.S. employers, according to data from Citizenship and Immigration Services.

This discrimination case, formally known as Palmer v. Cognizant Tech Solutions Corp, case number 17-cv-06848, is being handled in the U.S. District Court for the Central District of California, Los Angeles. Despite the legal challenges, Cognizant has reported a strong financial performance, including a 22% increase in consolidated net profits for the June quarter, reaching $566 million.