2025-04-18T07:51:41.000Z

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The United States Equal Employment Opportunity Commission (EEOC) is currently conducting an investigation into a series of allegations against Tata Consultancy Services (TCS), the largest IT outsourcing firm in India. The complaints suggest that TCS has engaged in discriminatory practices against its American employees based on factors such as age, race, and national origin. Notably, these claims have predominantly been brought forth by professionals over the age of 40, who assert they were disproportionately affected during layoffs while their Indian counterparts, including many working on H-1B visas, appeared to be retained.

According to Bloomberg, the EEOC's inquiry is fueled by reports that began to emerge in late 2023. TCS, which boasts a global workforce exceeding 600,000 employees, has responded to these allegations by denouncing them as meritless and misleading. A spokesperson for the company expressed confidence in TCSs reputation, stating, 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.

The complaints have raised significant concerns regarding TCSs treatment of non-South Asian employees, igniting discussions about workplace equality in the tech sector. As the EEOC continues its investigation, the agency has remained tight-lipped, as federal laws protect the confidentiality of such complaints, preventing public disclosure of the specifics.

A review of the complaints by Bloomberg indicates that the EEOCs investigation commenced during President Bidens administration and has continued into the present. In April 2024, US Representative Seth Moulton, a Democrat from Massachusetts, formally urged the EEOC to expand its investigation into TCS. Moultons letter highlighted a potential discriminatory pattern in the companys conduct toward American workers, calling for a thorough examination of the claims.

In his correspondence, Moulton raised concerns about the potential misuse of US work visa programs, which are designed to fill labor shortages. He emphasized that TCSs actions might represent a pattern or practice of discrimination that falls within the jurisdiction of the EEOC. This is not the first time TCS has faced scrutiny over its employment practices. Similar claims of discrimination based on age and nationality have been filed against the firm in the UK, where three former employees allege that they were unfairly targeted during a redundancy program.

These accusations are reminiscent of a 2020 investigation into Cognizant Technology Solutions, another prominent outsourcing company, which found that Cognizant had discriminated against over 2,000 non-Indian employees between 2013 and 2022. A jury upheld the EEOCs findings in that case, and Cognizant is currently in the process of appealing the verdict.

TCS counts several major US clients among its customer base, including major airlines, automobile manufacturers, and financial institutions. The company has also faced criticism for its use of various visa programs, particularly the L-1A visa, which is intended for internal company transfers. Reports from February 2024 revealed that TCS has heavily relied on the L-1A visa program, raising alarms among former employees who allege that the company used this method to bypass H-1B visa regulations, a claim that TCS has denied.

Further complicating matters, Milind Lakkad, TCSs head of global HR, made remarks to a news agency suggesting that the company aims to decrease the proportion of American workers in its US workforce from 70% to 50%. He characterized this shift as a strategy to create more opportunities for employees based in India. This statement has been cited by workers in their complaints to the EEOC as evidence of systemic discrimination within the company's hiring practices.

Under the leadership of Andrea R. Lucas, who was appointed by President Trump in January as the acting chair of the EEOC, the agency has pledged to ramp up its efforts to combat discrimination against American workers. Lucas has publicly stated that unlawful bias against American workers is an escalating concern across the nation, asserting that addressing illegal discrimination will help alleviate the demand for foreign labor.

Despite the ongoing investigation, TCS has opted not to provide specific comments regarding the allegations raised by workers, and the inquiry remains active.