In the fast-moving world of global IT companies, a recent lawsuit against Cognizant Technology Solutions is making waves. This class-action lawsuit, filed by Latreecia Folkes and more than 2,000 other employees, claims that Cognizant has been unfairly treating workers based on their race and nationality. The case reveals some shocking truths about how the company uses the H-1B visa program, a special work visa for foreign workers, and how this has led to a preference for Indian employees over Americans.
What Happened at Cognizant?
Cognizant, a huge IT services company based in New Jersey, is facing serious accusations. In October, a jury found that the company intentionally discriminated against over 2,000 workers between 2013 and 2022. This verdict followed an investigation by the U.S. Equal Employment Opportunity Commission (EEOC), which had uncovered similar issues earlier in 2020. The lawsuit claims that Cognizant favored workers from India, many of whom entered the U.S. using H-1B visas, while sidelining American workers, especially those who were Black or Hispanic.
Cognizant denies the accusations, insisting that they provide equal opportunities for all employees. They also pointed out that they have been hiring fewer H-1B visa workers in recent years.
Latreecia’s Story
Latreecia Folkes, one of the key figures in the lawsuit, had a promising start at Cognizant. She received praise for her work on a new project, but things quickly turned sour. After being asked to train a worker from India to replace her, her career stalled. Despite her skills and early success, Folkes found herself constantly passed over for promotions and new projects. She was even “put on the bench” twice—meaning she wasn’t assigned any work—leading to frustration and a sense of being pushed out.
Despite applying for multiple roles and even begging for opportunities, Folkes was eventually fired just three days after filing an internal complaint about the discrimination she was facing. Her case highlights how many American workers, especially those of different races, felt sidelined in favor of foreign workers, particularly those from India.
The Bigger Picture: H-1B Visa Controversy
The lawsuit shines a spotlight on the H-1B visa program, which is supposed to help U.S. companies hire foreign workers when there aren’t enough qualified American candidates. But the lawsuit suggests that companies like Cognizant may be using the program to hire cheaper workers, often at the expense of American workers’ jobs and pay.
Cognizant is one of many IT firms accused of taking advantage of this visa system. From 2013 to 2020, data revealed that about two-thirds of the company’s U.S.-based employees were from India. The problem wasn’t just limited to hiring practices but extended to terminations as well. American workers were much more likely to be fired or let go than their Indian counterparts. For Black and Hispanic workers, the risk of termination was even higher.
Legal and Financial Repercussions
This case is not just about one company—it’s part of a larger issue in the tech industry. Many companies that rely on H-1B workers have been accused of using the program to lower labor costs. Although the Department of Labor classifies Cognizant as an “H-1B-dependent” employer, meaning a significant percentage of their workers are on these visas, they don’t have to prove that they’re not replacing U.S. workers with foreign labor.
The lawsuit also raises questions about wages. The median pay for H-1B workers has decreased by 20% since 2000, making these workers an attractive option for companies looking to cut costs.
What’s Next for Cognizant?
Cognizant says it plans to appeal the verdict, but this lawsuit has already brought attention to widespread issues in the IT industry. The case reveals not just what’s happening at Cognizant but also reflects a troubling trend across the industry where companies prioritize cost savings over fair hiring practices and equal opportunities for all workers.
As the case continues to unfold, many are watching closely to see what impact it will have on the future of hiring practices in the tech world. Will companies like Cognizant face more scrutiny for their use of H-1B visas? Only time will tell, but this lawsuit has certainly opened up a bigger conversation about race, nationality, and fairness in the workplace.
