Tata Consultancy Services—Paid $29.75 million settlement for forcing 12,000 H-1B visa workers to sign over their tax refund checks to the company
On March 1, 2013, TCS paid $29.75 million settlement after lawsuit filed in 2006 by employees Gopi Vedachalam and Kangana Beri alleged TCS 'unjustly enriched itself by requiring all 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 employee's paychecks.' The class action represented 12,000 H-1B visa workers. TCS forced workers to sign over tax refunds they were legally entitled to, and took illegal paycheck deductions. This systematic wage theft targeted vulnerable visa workers who feared retaliation and deportation if they resisted. Settlement represented compensation for thousands of workers systematically exploited through their visa status vulnerability.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Worker Rights | -against | primary | -1.00 |
| Overall incident score = | -0.188 | ||
Score = avg(topic contributions) × significance (high ×1.5) × confidence (0.50)× agency (compelled ×0.25)