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TCS settles lawsuit over California labor laws, employment contracts

In 2006, employees of Tata Consultancy Services sued the company alleging that it violated California's labor laws by wrongfully withholding wages. In 2012, the case was granted class action status. Two classes were allowed -- one of employees suing for breach of contracts and one for employees suing for labor law violations.

TCS is an India-based software company, but many of its employees were sent to California to work. According to the lawsuit, TCS broke employment contracts for non-U.S. citizen employees. The employees said the company would withhold wages earned in California and remove their Indian salaries from their total compensation. Workers also allege that TCS made employees give up their tax returns to the company.

Recently TCS settled the class action lawsuit for $30 million but did not admit to any labor law or contract violation.

Having your employment contract violated and being denied wages are two very serious acts of wrongdoing by a company. Whether your company employs only a few people or thousands, you deserve to be treated and compensated fairly. If you're not, you may have legal options. Going up against an employer can be very complicated, however, so it's important to work with an experienced attorney.

Large companies rarely want to admit to providing poor working conditions for their employees, but employees have the right to hold them accountable. Working with an attorney who is well-versed in employment law can help ensure that your rights are protected and your best interests upheld.

Source: Fox Business, "India's TCS Settles Class Action Lawsuit in US for $30 Million," Dhanya Ann Thoppil, Feb. 26, 2013

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