US Tech Workers Allege Unfair Displacement by H-1B Visa Holders at TCS

US Tech Workers Allege Unfair Displacement by H-1B Visa Holders at TCS

In a recent development that has stirred the ongoing debate over the H-1B visa program, a group of American tech professionals has accused Tata Consultancy Services (TCS), a prominent Indian IT firm, of replacing them with Indian nationals on H-1B visas. This allegation, as reported by the Wall Street Journal, adds a new layer of complexity to the discourse surrounding the employment of skilled foreign workers in the United States.

The H-1B visa, a program designed to allow U.S. companies to employ foreign workers in specialty occupations that require technical expertise, has been a contentious issue for years. Critics argue that it can lead to the displacement of American workers and downward pressure on wages, while proponents see it as a means to address skill shortages and enhance global competitiveness.

The complaints, filed with the Equal Employment Opportunity Commission (EEOC), suggest that TCS engaged in discriminatory practices by terminating the employment of American workers—many of whom are in their 40s to 60s and come from diverse ethnic backgrounds—on short notice. These former employees hold advanced degrees, including MBAs, and claim that their roles were handed over to lower-paid Indian immigrants holding H-1B visas.

The affected workers span more than a dozen states and allege that TCS showed a preference for Indian workers already in the U.S. on H-1B visas. This, they argue, constitutes unlawful discrimination based on race and age. TCS, however, has responded to these allegations by stating that they are “meritless and misleading,” emphasizing the company’s commitment to equal opportunity and integrity in its U.S. operations.

Tata Consultancy Services Lunch” by europeanbusinesssummit is licensed under CC BY-NC 2.0

The H-1B visa system, which issues 65,000 visas annually, with an additional 20,000 for applicants holding advanced degrees from U.S. institutions, is a critical component for tech companies in recruiting global talent. The selection involves a lottery conducted by the U.S. Citizenship and Immigration Services, with employers sponsoring the selected applicants.

The H-1B1 visa, a variant of the H-1B, is reserved for individuals in “specialty occupations” and is often the next step for university graduates or those completing F-1 or J-1 visa programs. To qualify, a job must require the services of a professional, and the foreign worker must meet the professional criteria, including having at least a Bachelor’s degree in a technical field or equivalent experience.

Employers are mandated to pay H-1B1 visa holders the higher of the actual or prevailing wage to protect their salaries. The processing time for these visas can be expedited to 15 days with premium processing, or it may take three to four months under standard procedures.

This is not the first time TCS has faced such allegations. In 2018, the company was acquitted in a California court of charges of bias toward Indian employees over U.S. residents. Despite these recurring legal challenges, the debate over the H-1B visa program continues, with implications for both American workers and the global talent pool that tech companies rely on.

The industry is dealing with cost-cutting measures and reduced demand, the allegations against TCS could have significant repercussions for the future of the H-1B visa program and the broader employment landscape in the tech sector.

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American techies accuse TCS of firing them in favour of Indians on H-1B visa