TCS US layoff row: America-origin staffers accuse IT giant of ‘discrimination’ in favour of H-1B visa workers

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New Delhi: Tata Consultancy Services has been accused of discrimination by American-origin workers in the US who alleged that the IT giant was favouring Indian H-1B visa workers over them. The US-based workers have accused TCS of discriminating against them based on race and age. TCS rebutted the allegations calling them “meritless and misleading”. The company also added that it had a “strong record” of being an equal-opportunity employer in the US.

What is the accusation about?

A group of 22 US-based workers complained to the US Equal Opportunity Commission against the Tata Group-owned IT giant citing race and age-based bias.

The complainants include:

Hispanic Americans

They are aged between 40 and 60 years old, the Wall Street Journal reported. The former TCS employees are spread across over 12 states in the US, according to the report. These workers accused TCS of allegedly laying them off citing grounds such as age and race. They also stated that the company gave “preferential treatment” to Indian workers on H-1B visas in India.

The complainants are reportedly well qualified with some holding MBA and other advanced degrees, the WSJ reported. Workplace discrimination is liable to US Federal government action, according to the US Equal Opportunity Commission.

Previous allegations against TCS

This is not the first time that TCS has been accused of discrimination. TCS was granted partial relief in a discrimination lawsuit in a New Jersey court in 2023 in which a former staffer named Shawn Katz accused the IT giant of discriminating against non-South Asian and non-Indian applicants as well as employees. Katz, who worked with TCS for nine years was let go by the IT giant. He filed the case after being laid off.

US-origin workers accuse MNCs of applying for special US visa on behalf of South Asian workers without declaring that there are eligible workers in the US. This is allegedly done to hire foreign workers for cheaper over similarly qualified US-origin workers.

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