Cognizant is Liable for Discrimination Against Non-Indian Workers

Christy Palmer Et Al V. Cognizant Technology Solutions Corporation Et Al

Case Background

Plaintiffs Christy Palmer, Vartan Piroumian, Edward Cox, and Jean-Claude Franchitti initiated this employment action for themselves and a class of similarly affected individuals in 2017. They sought to address ongoing discrimination based on race and national origin by Defendants Cognizant Technology Solutions Corporation and Cognizant Technology Solutions U.S. Corporation (collectively referred to as “Cognizant”). The Plaintiffs represented over 2,000 former employees who were neither South Asian nor Indian and who had been terminated while on the bench. They alleged that Cognizant practiced a pattern of discrimination that favored South Asian employees and those of Indian national origin in its termination decisions. The case was filed in the United States District Court, California Central (Western Division - Los Angeles). The case was assigned to Judge Dolly M. Gee and referred to Magistrate Judge Gail J. Standish. [Case number: 2:17cv6848]

Cause

Cognizant is an American multinational corporation that provides information technology and consulting services globally. Employing around 40,000 people in the United States, the company has a predominantly South Asian workforce—over 75%—despite South Asians making up only 12% of the U.S. IT industry. This significant imbalance has raised concerns about discriminatory hiring practices favoring South Asians, particularly Indians, in areas such as hiring, promotions, and terminations.

Business Model

Cognizant operates approximately 37 offices across the U.S. and reported over $13.4 billion in revenue for fiscal year 2017. A substantial portion—78%—of its revenue is derived from North America, primarily the U.S. The company's business model involves contracting with U.S. companies for IT services and hiring individuals to fulfill those roles. When projects conclude or Cognizant removes employees, the company places them in a Corporate Deployment Pool, commonly called being “benched,” where they must search for new roles.

Discriminatory Practices

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Los Angeles Jury Finds Cognizant Liable for Racial Discrimination Against Non-South Asian Employees