TCS gets partial relief in a discrimination lawsuit case in a New Jersey court

Indian IT services company Tata Consultancy Services (TCS) has got partial relief in a discrimination lawsuit case in a New Jersey court, in the US. Eight months ago, a lawsuit was filed against TCS for discrimination and violation of visa norms. The court has trimmed the lawsuit by setting aside one of the three claims made by the complainant. The other two claims will move forward.

Shawn Katz, a former employee of the IT company, filed a lawsuit against the TCS in the United States alleging racial discrimination against non-South Asian and non-Indian applicants and employees.

His lawsuit alleges that the Indian IT company systematically discriminates against non-South Asian and non-Indian applicants and employees when it comes to “hiring, staffing, benching, termination, and promotion decisions" and that this policy is implemented top-down at the company.

“TCS’s discrimination is systemic and ongoing, and impacts non-South Asians and non-Indians across the company, as well as applicants, who are disfavored in TCS’s hiring, staffing, promotion, and termination/retention decisions,” the complaint read

The complainant alleged that he was facing disparate impact on the basis of race, and unlawful employment practices on the basis of race and national origin. He sought injunctive and declaratory relief as well as damages. In response, TCS filed a motion to dismiss.

The New Jersey court did not move forward with Katz’s disparate impact claim since he was unable to establish a case for it.

The court order read, “TCS’s benching, hiring, and termination policies to maximise visa-holders, who Katz alleges are “almost exclusively South Asian,” followed by TCS prioritizing those visa-holders for TCS positions, are not facially neutral policies because Katz alleges TCS implements these policies to further a preference for South Asians and Indians.”

It is worth noting that the complainant was with TCS for nine years before being let go. The case was filed in the United States District Court for the District of New Jersey on December 7.