Tech company favored foreign workers over Americans

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A Bloomberg News investigation reveals that Cognizant Technology Solutions Corporation systematically favored Indian H-1B visa holders over American workers, despite repeatedly promising to increase U.S. hiring.

Former hiring manager Sonya McLaughlin exposed the company’s practices, stating “The entire business model is built on the back of cheap Indian labor. The [Indian] people who are on visas are the people Cognizant wants.”

Check out this post! "(Bloomberg) Insiders Tell How IT Giant Favored Indian H-1B Workers Over US Employees (Tech Industry)"https://t.co/BWpRB0YeDD pic.twitter.com/52WggM9cUj

— Jack Kelly (@jackjaykelly) December 9, 2024

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A federal jury recently found the company guilty of discriminating against over 2,000 non-Indian employees between 2013 and 2022, supporting findings from a 2020 EEOC investigation. The case highlights growing tensions as President Trump faces pressure from business allies seeking to maintain foreign graduate recruitment while promising to curb immigration.

A Cognizant spokesperson defended the company, stating “Cognizant provides equal employment opportunities for all employees and does not tolerate discrimination in any form” and “Cognizant complies with federal laws regarding pay for visa workers…. [and] disagrees that any financial incentive exists to hire visa workers.”

John Miano from the Center for Immigration Studies notes companies are “offshoring nearly every [white collar] job in America because there is no labor market test.”

The Biden administration’s recent policy changes have expanded opportunities for foreign workers. Kevin Lynn of U.S. Tech Workers views the verdict as validation of longstanding concerns, emphasizing how visa programs intended for exceptional talent have instead displaced American graduates.

Internal reports revealed alarming disparities in termination rates, with Black employees facing dismissal 23 times more frequently than Asian workers. Hispanic and White workers experienced similarly disproportionate termination rates.

The situation extends beyond Cognizant, with approximately 250,000 foreign workers annually entering U.S. white-collar positions through various visa programs. Currently, around 2 million jobs that could employ American graduates are held by foreign visa workers.

https://t.co/1dz7k4qvcY

" A major U.S.-based company discriminated against U.S. graduates while it used the H-1B visa program to place low-salary Indian graduates into U.S. white-collar jobs, according to a report in Bloomberg News. "

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— One Civilian (@OneCivilianUSA) December 10, 2024

Cognizant, founded in 1994 by Indian immigrants working for Dun & Bradstreet, has evolved into a major staffing firm backed by investment giants like Vanguard and BlackRock. The company’s practices reflect broader industry trends, where staffing firms collaborate with Fortune 500 companies while maintaining connections with Indian government interests and congressional allies.

The ongoing legal battle, Palmer v. Cognizant Tech. Solutions Corp., continues in Los Angeles federal court as the company prepares to appeal the discrimination verdict.