Corporate Feb 27, 2013
New Delhi: The country's largest software firm TCS has agreed to settle a suit filed by two former employees alleging violation of the rights of its non-US citizen workers in the US, reportedly for $30 million.
The lawsuit alleged that TCS has required its non-US-citizen employees to sign power of attorney agreements delegating an outside agency to calculate and submit each employee's tax return to state and federal authorities.
Highlighting that the US Court has found no wrongdoing by the company, TCS said it "believes that it always acted appropriately notwithstanding the allegations in this case."
However, it did not disclose details of the settlement.
"The company has admitted no wrongdoing and none has been found by the court. It agreed to settle this matter to eliminate any on-going distraction to its associates and management," a TCS spokesperson said.
The lawsuit was filed in 2006 by two of TCS' former employees, Gopi Vedachalam and Kangana Beri.
The lawsuit alleged that the company unjustly enriched itself by requiring all of its non-US citizen employees to endorse and sign over their federal and state tax refund checks, among others.
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