Mphasis denies discrimination allegations, settles case with $171,300 payout

Mphasis denies discrimination allegations, settles case with $171,300 payout
Photo Credit: Reuters
10 Jul, 2020

Bengaluru headquartered information technology (IT) services company Mphasis has agreed to pay $171,300 in lost wages to resolve allegations of discrimination against white applicants in its San Jose, California office. 

The issue was raised by the Office of Federal Contract Compliance Programs (OFCCP), which functions under the US Department of Labor, after a routine compliance evaluation.  

Mphasis favoured Asian applicants for the post of computer systems analyst between 2015 and 2017, the OFCCP said. This hiring practice violated Executive Order 11246, which prohibited work discrimination based on race, national origin or gender, it added.

An Mphasis spokesperson denied the allegations. 

“Mphasis is now and has always been committed to equal employment, and will continue to reflect our commitment to the recruitment of a diverse workforce,” the spokesperson said. “To avoid costly litigation, we have resolved this matter.”

According to the terms of the settlement, as seen in the court release, Mphasis has agreed to pay back wages, extend job opportunities to 14 members and take steps to ensure that its practices meet legal requirements.

“Federal contractors are required to provide equal employment opportunity to all applicants, regardless of race and ethnicity,” Jane Suhr, regional director at the OFCCP, said.

The organisation also enforced Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’s Readjustment Assistance Act of 1974 -- two laws that make it illegal for companies doing business with the federal government to discriminate against people based on race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran.