US Agency Investigates Employee Discrimination Allegations Against India’s TCS

The U.S. Equal Employment Opportunity Commission (EEOC) has launched an investigation into allegations of workplace discrimination against Tata Consultancy Services (TCS), India’s largest IT services company. The probe follows complaints from American workers who claim they were unfairly replaced by lower-cost Indian employees on work visas.

The EEOC, a federal agency responsible for enforcing anti-discrimination laws, is examining whether TCS systematically favored Indian workers over U.S. citizens and green card holders in hiring and layoffs. The complaints allege that TCS disproportionately terminated American employees while retaining or hiring workers on H-1B and L-1 visas, which are often used to bring foreign talent into the U.S.

This is not the first time TCS has faced such scrutiny. In 2018, a U.S. jury ordered the company to pay $140 million in punitive damages to a former American employee who claimed he was fired because of his nationality. TCS later settled the case for an undisclosed amount.

According to sources familiar with the matter, multiple former TCS employees in the U.S. have submitted sworn statements to the EEOC, alleging:

Discriminatory Hiring Practices: Preferential treatment given to Indian workers in recruitment and promotions.

Biased Layoffs: American employees were disproportionately targeted in workforce reductions.

Retaliation: Some whistleblowers claim they faced retaliation after raising concerns internally.

The EEOC’s investigation could lead to a lawsuit if the agency finds sufficient evidence of systemic discrimination.

TCS, a subsidiary of Tata Group, has denied any wrongdoing. In a statement, the company said:
“TCS is an equal opportunity employer and adheres to all local laws and regulations in the U.S. We value diversity and inclusion and are cooperating fully with the EEOC’s inquiry. The allegations do not reflect our corporate policies or practices.”

The company employs over 40,000 workers in the U.S. and has been expanding its local hiring initiatives in recent years, partly in response to stricter U.S. visa policies.

The case highlights ongoing tensions in the U.S. tech industry over the use of foreign work visas. Critics argue that some companies misuse the H-1B program to replace American workers with cheaper labor, while proponents say it helps fill critical skill gaps.

The Biden administration has taken steps to tighten H-1B regulations, including increasing scrutiny of visa applications and prioritizing higher-wage roles. If the EEOC finds merit in the claims against TCS, it could lead to stricter enforcement actions against other IT outsourcing firms.

The EEOC’s investigation is expected to take several months. If a settlement is not reached, the agency may file a lawsuit against TCS, potentially resulting in financial penalties and mandated changes to hiring practices.

Legal experts suggest that the outcome could influence how other Indian IT firms, such as Infosys and Wipro—which have faced similar allegations—operate in the U.S.

For now, the case serves as a reminder of the legal and reputational risks global companies face in balancing cost efficiencies with fair employment practices.