TCS Denies Bias Allegations in US Layoffs, Calls Claims ‘Misleading and Meritless’
Tata Consultancy Services (TCS) has firmly denied allegations of discrimination against non-Indian employees in the United States, calling the accusations “misleading and meritless.” The response follows a report by Bloomberg stating that the U.S. Equal Employment Opportunity Commission (EEOC) is investigating the IT services giant after multiple former employees filed complaints in 2023.
According to the report, the complaints primarily came from former TCS employees over the age of 40 and from non-Asian backgrounds, who alleged they faced unfair treatment in hiring, promotions, and layoffs. These individuals have claimed the company favored Indian workers on H-1B visas, potentially violating U.S. equal employment laws.
TCS Rejects Allegations
In an official statement, TCS dismissed the allegations:
“Allegations that TCS engages in unlawful discrimination are meritless and misleading. TCS has a strong track record of being an equal opportunity employer in the U.S., embracing the highest levels of integrity and values in our operations.”
A second statement from the company further stressed its adherence to ethical standards and its global values:
“Claims that TCS engages in discriminatory practices are unfounded and deceptive. We are committed to being an equal opportunity employer in the U.S., guided by our core values and ethical standards.”
EEOC Investigation Underway
The EEOC, a federal agency tasked with enforcing civil rights laws in the workplace, is currently reviewing the complaints. While the agency has not publicly commented on the matter, its involvement signals the seriousness of the allegations.
Political Pressure Mounts
In April 2024, U.S. Representative Seth Moulton, a Democrat from Massachusetts, urged the EEOC to conduct a deeper investigation into TCS. In a formal letter, Moulton noted that several of the complainants were his constituents and expressed concern over possible misuse of U.S. visa programs by TCS to favor Indian workers over qualified American candidates.
Moulton wrote that the alleged practices could “undermine fair labor standards” and called for the EEOC to examine whether TCS was operating in violation of employment laws.
Reference to Cognizant Case Raises Concerns
The TCS case draws parallels to a similar situation involving Cognizant Technology Solutions in 2020. In that case, the EEOC found evidence of discrimination against non-Indian workers. A class-action lawsuit followed, and a jury concluded that Cognizant had shown a pattern of favoritism toward Indian employees from 2013 to 2022. Cognizant denied wrongdoing and is currently appealing the verdict.
Comments from TCS HR Head Spark Debate
Adding fuel to the controversy are comments made by TCS Global HR Head Milind Lakkad in an interview with an Indian news outlet. Lakkad reportedly stated that the company was open to hiring Indian tech workers in the U.S. who had recently been laid off by American firms. He also said that around 70% of TCS’s U.S. workforce are Americans, but the company hoped to reduce this to 50%, giving more opportunities to Indian professionals.
These remarks have sparked further criticism, with labor rights advocates questioning whether such hiring practices align with U.S. equal employment guidelines.
As the EEOC investigation continues, all eyes are on how TCS navigates these allegations and whether formal action will follow.
REPUBLIC.
