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
Critics have highlighted several practices by Cognizant that demonstrate a clear preference for South Asian employees:
- Visa Preferences: The company prioritizes South Asians for U.S. positions requiring H-1B visas, becoming the top recipient of these visas in 2015 and 2016.
- Fictitious Job Applications: Cognizant has allegedly submitted visa applications for non-existent jobs, creating false invitation letters indicating a need for South Asian employees.
- Hiring Bias: Both internal and external recruiters at Cognizant favor South Asian candidates, leading to disproportionate hiring.
- Promotion Discrepancies: South Asians receive promotions at significantly higher rates, with performance ratings often reflecting this bias.
- Termination Patterns: Non-South Asians face terminations at much higher rates, especially those benched for over five weeks.
Plaintiff Experiences
Palmer’s Experiences
Ms. Palmer joined Cognizant in 2012, bringing nearly 20 years of IT experience. She often found herself replaced by South Asian employees, despite her skills and contributions. For example, after relocating for a client project, she was replaced within four months. When seeking additional staff, Cognizant consistently provided profiles of South Asian candidates, overriding her requests for qualified non-South Asian individuals. Facing a hostile work environment, she resigned in December 2016.
Piroumian’s Experiences
Mr. Piroumian, with over 30 years in software engineering, started at Cognizant in 2012 as an Enterprise Architect. He frequently faced removal from client positions, often replaced by less qualified South Asian employees. Despite receiving strong performance reviews, managers consistently overlooked him for new roles in favor of South Asian candidates. In August 2017, Cognizant terminated his employment after they failed to address his repeated reports of discrimination.
Damages
Cognizant’s intentional discrimination directly caused the Plaintiffs and class members to face significant employment barriers. They were denied job opportunities and were not given a fair chance to secure positions. Additionally, they experienced obstacles regarding career advancement and continued employment at Cognizant. Due to Cognizant’s actions, the Plaintiffs and the class they aimed to represent experienced significant harm. This harm justified the need for punitive damages.
Jury Verdict
On October 04, 2024, the California jury decided on whether Cognizant’s conduct was discriminatory or not. The jury found that Cognizant indulged in discriminatory practices against non-South Asian employees based on race and against non-Indian employees based on national origin, leading to their termination from the bench.
The jury also found that Cognizant’s conduct warranted the award of punitive damages.
A spokesperson for Cognizant expressed disappointment with the verdict and announced the company’s plans to appeal.
“We provide equal employment opportunities for all employees and have built a diverse and inclusive workplace that promotes a culture of belonging in which all employees feel valued, are engaged, and have the opportunity to develop and succeed,” Jeff DeMarrais said in an emailed statement.
