TCS denies bias towards H-1B workers during layoffs in US, calls charges 'misleading'

IT giant Tata Consultancy Services (TCS) is facing a probe by the US Equal Employment Opportunity Commission (EEOC) over discrimination charges by some ex-employees.

According to a Bloomberg report, the former employees are from non-South Asian ethnic backgrounds over the age of 40. They alleged that the company targeted them for layoffs but spared Indian colleagues, some of whom were working on H-1B skilled worker visas. They began filing complaints against TCS in late 2023.

The EEOC is tasked with enforcing laws prohibiting discrimination in the workplace. An EEOC spokesperson, citing federal law, said the agency cannot comment on investigations. Complaints, or charges, made to the EEOC are confidential under federal law, the spokesperson added.

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What are charges against TCS?

According to The Guardian report, three former TCS workers in the UK made similar charges before an employment tribunal, alleging the company in 2023 discriminated against them based on their age and nationality as part of a redundancy programme.

In an April 2024 letter that has not been previously reported, US Representative Seth Moulton, a Massachusetts Democrat, wrote to the EEOC’s commissioners and its then-chair, Charlotte Burrows.

Moulton asked the agency to consider opening an investigation into TCS, noting that residents of his state were among more than two dozen people who had submitted complaints to the agency.

"TCS’s actions may have constituted a pattern or practice of discrimination impacting Americans that falls within the EEOC’s jurisdiction. Additionally, it may also have been a potential misuse of US work visa programs designed to fill US labor shortfalls," Moulton was quoted by Bloomberg as saying.

TCS response

Under fire over discrimination charges, a TCS spokesperson said,"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 US, embracing the highest levels of integrity and values in our operations.”

In February, Bloomberg reported that TCS has made heavy use of another employment visa programme reserved for managers, known as L-1A, and that some ex-staffers have alleged the company used them to circumvent H-1B rules. TCS has denied any wrongdoing.

In January, Trump appointed Andrea R. Lucas as acting EEOC chair , who had served as an EEOC commissioner since his first term. She has vowed to step up investigations into what she describes as discrimination against American workers.

“Unlawful bias against American workers is a major problem nationwide, with many employers preferring those on visas and other foreigners over American workers," she said in a February statement.