Indian IT Giant Tata Faces Class Action Labor Suit
Date: April 9, 2012By: FLSA Lawyers
A class-action lawsuit has been certified against India’s largest information technology (IT) services provider, Tata Sons Ltd.. The lawsuit was certified by Judge Claudia Wilken in the US District Court for the Northern District of California. According to Reuters, the suit accuses Tata and its subsidiary, Consultancy Services (TCS), of breaching employee contracts and violating California labor laws.
The lawsuit states that two former employees claim that Tata breached standard employment contracts by forcing all non-U.S.-citizens to sign their 2006 federal and state tax refund checks over to the corporation. In addition, it is alleged that Tata deducted their Indian wages from their total compensation, even though they were promised wages in both Indiana and the United States. The contract breach lawsuit is comprised of non-U.S. citizens (Indian nationals) who worked at the company between February 14, 2002 and June 30, 2005. In addition, the court certified a separate class of employees to bring a lawsuit alleging breaches of California labor laws, including withholding earned wages and accurate wage statements.
India’s information technology and business process outsourcing business is massive, especially to the United States and Britain. Mumbai-based Tata has approximately 227,000 employees that serve giants such as Citigroup and BP Plc. The company has released a statement saying that it believes the court will find that the claims are without merit.
In general, California’s labor laws are more stringent and extensive than those guaranteed under the Fair Labor Standards Act (FLSA) and other state laws. Due to the widespread lack of knowledge of federal labor and overtime guidelines, employees are frequently underpaid. If you believe that your employer may be violating the FLSA or any other employment laws, contact an experienced wage attorney to see if you qualify to receive back wages for unpaid overtime or under-payment.
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