TCS settles US wage dispute for $30 million
Moneylife Digital Team 26 February 2013

The suit charged that TCS unjustly enriched itself by requiring all of its non-US citizen employees to endorse and sign over their federal and state tax refund checks to the company and by taking unauthorised deductions from employees’ paychecks

Tata Consultancy Services (TCS), Asia’s largest software-services provider, has agreed to pay $29.8 million to settle a wage dispute in California with workers who were sent to work in the US from India.

 

The complaint was filed by non-US employees Gopi Vedachalam and Kangana Beri, who were sent to the US to work on projects.

 

The suit charged that TCS unjustly enriched itself by requiring all of its non-US citizen employees to endorse and sign over their federal and state tax refund checks to the company and by taking unauthorised deductions from employees’ paychecks.

 

Terms of the settlement are described in a 21st February filing with US District judge Claudia Wilken in Oakland, California. The judge in April certified the case as a class, or group, lawsuit for all non-US citizens employed by the company in California from 14 February 2002 to 30 June 2005.

 

“This was an extraordinarily hard fought case and we are proud of the result for the employees,” Kelly M Dermody, a lawyer for the workers, said in a communiqué.

 

“TCS believes that it always acted appropriately notwithstanding the allegations in this case,” Michael McCabe, a spokesman for TCS, said. “The company has admitted no wrongdoing and none have been found by the court. It agreed to settle this matter to eliminate any on-going distraction to its associates and management.”

Comments
Mohan
1 decade ago
Same case with other Indian Companies as they are taking the Tax Refunds from the Employees, I Work CSC and they do take away the Tax Refunds from CSC Employees when this tax refunds is filled its based on the Employee Depedents (I mean the Intimised), Indian Companies can take everything from Employees as our Govt Laws are so weak and they are playing with rules.
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