India’s Largest Software Exporter Settles Wage Dispute Lawsuit

Tata Consultancy Services Ltd. (TCS), India’s largest software exporter, has reached a $30 million settlement with two employees in the U.S. over a wage and hour dispute lawsuit filed against the company. Gopi Vedachalam and Kangana Beri, former employees at the software giant, filed a class-action lawsuit in 2006, wageandhouralleging that the company had failed to pay them the wages it had promised prior to their arrival in the U.S. In particular, they claim that the company violated its job contracts by requiring all non-U.S. citizens working for the firm to give their state and federal tax refunds to the company and deducting the pay they had received in India from their compensation for work in the U.S.

While TCS has denied any wrongdoing, the company agreed to settle with both employees to the tune of $30 million.

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