Fired IT workers file lawsuit claiming H-1B workers replaced them
Workers file suit against Molina Healthcare and its outsourcer, Cognizanthttp://www.networkworld.com/news/2011/071211-fired-it-workers-file-lawsuit.html?page=2 - via Network World
Eighteen IT workers in California have filed a lawsuit against their former employer claiming they were replaced by H-1B workers from India and then laid off in violation of the state's anti-discrimination laws.
In the lawsuit, the 18 workers say that IT managers at Molina Healthcare Inc. increasingly catered to the Indian workers while leaving U.S. workers, mostly security analysts and programmers who earned at least $75,000 a year, feeling excluded prior getting laid off last year.
The lawsuit says that on Jan. 14, 2010, one day after the U.S. Department of Labor approved Cognizant's application for 40 H-1B workers, Molina fired 40 programmers, security analysts and managers. It also claims that the wages for the H-1B employees were approximately 50% less than that paid to their American counterparts.
The lawsuit also alleges that in 2007 and 2008 "Molina learned of numerous material violations of HIPAA (Health Insurance Portability and Accountability Act) but did not take any action with respect these violations." When Molina's IT department runs a test on new software projects, the IT employees are required to mask the data embedded in the software to protect privacy, according to the lawsuit. The suit alleges that that Molina's H-1B employees would send patient names, Social Security numbers, addresses, birth dates and full medical files to employees in India.
MEANWHILE......
Cognizant spending large sums on lobbying in the US
http://articles.economictimes.indiatimes.com/2011-07-08/news/29751947_1_software-companies-visas-h-1b - India Times
BANGALORE: Lobbying has been a taboo for India's wildly successful software companies: that distasteful activity was supposed to be the preserve of those looking to prosper from the licence permit raj. And anyway, their markets were mostly overseas.
But now, in the home of free market capitalism, as their encounters with disguised protectionism grow more frequent, the 'L' word does not appear so dirty any more. That is why, while America keeps inventing reasons to make it harder for them to do business, many Indian software companies are spending large sums hiring professional help to win friends and influence people in their biggest market.
At stake is over $30 billion in business every year, about half of India's total outsourcing revenue. Cognizant, which is headquartered in the US but employs over 80% of its staff in India, spent $350,000 during the first quarter this year. Two years ago, it hired Robert Hoffman, a Capitol Hill regular, to lead its lobbying efforts.
Cognizant, which counts JPMorgan among its top customers, spent $350,000 during the first three months of this year lobbying for repatriation of foreign earnings, among other issues. It also lobbied to 'educate' members of the Congress about the impact of visa fee increases and spent around $60,000 during October to December, 2010.