An attempt to turn Molina Healthcare Inc. into another curry den has resulted in a major lawsuit against the company.  The insurgents that are bringing this suit have a lot of ammo on their side and a good lawyer.  For the rest of you fucking collaborators that want to get in bed with Cognizant or any other slumdog sweatshop, you should watch your back.

Fired IT workers file lawsuit claiming H-1B workers replaced them

Workers file suit against Molina Healthcare and its outsourcer, Cognizant

Patrick Thibodeau

July 12, 2011 (Computerworld)

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, filed in April in Los Angeles Superior Court against Molina, its CIO at the time, and Molina's outsourcer, Cognizant Technology Solutions, contends that over a period of several years the U.S. workers were marginalized as the IT department became dominated by Indian nationals.

The laid off IT workers used anecdotes to make part of their case.

For instance, the workers describe an IT department that took to celebrating Indian holidays, while Indian managers "actively discouraged U.S. workers from celebrating U.S. holidays and traditions, such as Christmas, the Fourth of July and Thanksgiving, by assigning mandatory work that, in order to be timely completely, required work during holidays traditionally celebrated in America."

The lawsuit says that non-Indian workers were kept from participating in critical decision making processes "for the purpose of putting them at a disadvantage to the employees of Indian descent."

It also charges that the IT management team only hired and promoted Indian nationals

Some meetings that had long been conducted in English, would "on many occasions" be conducted in "the native language of Indian employees," the lawsuit contends.

The lawsuit makes a number of charges, including discrimination based on national origin.

"The IT department was known as little India," said James Otto, an attorney for the 18 former Molina IT employees. The 18 workers were among 40 that were laid off in January, 2010. The 18 workers that filed suit claim the layoffs were made to make room for H-1B workers.

"They just wanted to fire the Americans, and that's what happened. It wasn't a downsizing, it wasn't an outsourcing, it was bringing in foreigners onto American soil to replace American workers. That [was] the scheme and it's going on around the country," said Otto.

Molina officials, in a written response to a Computerworld query, said the action is "nothing more than a shakedown lawsuit brought by a plaintiff's attorney who -- when the company refused his ridiculous financial demands -- filed a legal action grounded in falsehoods and malicious gossip."

Otto said he never made any demands and he had initially sought mediation.

Molina, in its statement, also said that "we will win in court because specific allegations in the lawsuit have been examined and found false. The fact that the general allegations also provide no basis for legal claims confirms that this plaintiffs' attorney included them solely for media attention."

Molina said it is an American company "employing more than 4,200 Americans," and that "less than 50 of our employees are H1B visa holders and they were hired only in cases when it was necessary to cast a wider net for particular skills."

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.

Molina, in response, said that particular Cognizant filing "had nothing to whatsoever to do with Molina and not a single person was hired at Molina based on that application."

Cognizant is named in the lawsuit, in part, for not trying to find qualified U.S. workers for the positions.

It also claims that the wages for the H-1B employees were approximately 50% less than that paid to their American counterparts.

In a written response to a query about the lawsuit, Cognizant said it "takes legal and regulatory compliance very seriously. It is Cognizant's view that this lawsuit is without merit, and we will vigorously contest it and pursue all legal remedies that may be available to us."

"The healthcare industry is one of the largest industry segments that Cognizant serves," said Cognizant. "Our expertise enables our clients to be more competitive in the marketplace, thereby enhancing their ability to provide affordable, quality healthcare to consumers."

Otto said allegations in the lawsuit are backed by direct testimony. He noted that Molina's former manager of budget and regulatory reports and audits testified that IT department expenses increased beyond its budget after the layoffs.

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.

The lawsuit also alleges that on Jan. 12, 2010, Molina IT employees spoke with their manager about discrimination and HIPPA issues. Two days later, according to the lawsut, the employees who complained were included in a broad layoff action.

Molina, in response, said that this claim is false, and that it "rigorously protects patient privacy and fully complies with all federal and state laws" including HIPPA.


Comments (15) -

United States James
July 20. 2011 12:29

Good luck winning in CA. The courts hate Americans and esp. white Americans. They side with "minorities" every time since if they don't, the minorities scream RACISM! and sue the courts - and win. Hence the gov't will never side with whitey. While I would like to see them win, in CA I am doubtful.

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United States Indian_shit
July 20. 2011 22:08

Tunnel Rat,


I myself Indian and ex-Infosys employee.

Know H1B real fraud employee in US right now. Know how to catch him red-handed, threatening to kill me if i tell anyone.

How can i send you his name and location and details of fraud.

Drop a bomb shell.....

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Canada ezygoer
July 21. 2011 00:00

After a decade of this only 18 and against 1 firm ? Not too sure about US law but cant every American techie from scores of firms all over the country like IBM,SUN,Oracle affected by this practice over the last decade join in the lawsuit to see if the practice and business model is illegal ?

Cant this be a national lawsuit against the very business model against H1-B firms and outsourcers ?

Or is this now legal since IBM is the leader of the pack ?

Will be amusing to see how this is resolved by the courts !!

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United States Minicoopsmom
July 21. 2011 13:54

Yay. Would like to see much more of this happening. As someone who was replaced by the curry den, I'd join a class action also.

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United States joshua
July 21. 2011 19:09

An interesting article about slumdogs crossing the mexico border

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Canada ezygoer
July 22. 2011 01:21

Taking up Indian_shit's idea if ICE were to set up hotlines where H1-B fraud could be reported IT unemployment would be reduced by 80% in a few months if properly enforced esp. in areas like Virginia, N.J, Atlanta, Texas, Cali .....

Easiest targets Indian housewives ... who masquerade as software testers and PM's employed by their husband's contacts or in firms they work at !!

Recall reading that the Brits colonized the Indians by making them turn on each other for money .. why not the Yanks ?

After all Indians who come to the US are suckers for the $$$$ - like most others !!

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United States Indian_tatti
July 22. 2011 09:53

Infosys senior level meetings : We will dump 6 million Indians in US and capture their entire IT market and no American will ever come to know about this. We will throw these Americans out of their own country. They don't know what we are doing over here.


When Infosys files petition it uses fake resume. Employee works in different project (Client itself is different and employee had never worked on the technology.)

So petition fake, resume fake.

But on Immigration or catching the guy right in office and force him to login to Infosys Intranet and then take a snap shot of the projects which he has worked (Profile displays that) and then match with petition. It will not match.

Even Jack Palmer can do that. He is a manager and should have access to any employee project history. I will give you the name and address of the employee. Ask Jack Palmer to take a snap shot and match with petition from USICS.

It is very simple. Infosys will never come to know.


DO it now or it will be very late.....

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United States Indian_tatti
July 22. 2011 09:53

Infosys Looses project... Pants down.

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United States anon
July 22. 2011 23:58

TR,Indian So called IT power based on cheap labour and like Henry ford had once said that any Business based on low cost model has little future.
99.99% IT people in india dreams ONSITE assignments.
Having said that what we are witnessing is the slow passing of a mighty nation Frown

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Canada ezygoer
July 23. 2011 00:18

Infosys senior level meetings: We will dump 6 million Indians in US and capture their entire IT market and no American will ever come to know about this. We will throw these Americans out of their own country. They don't know what we are doing over here.

Ahh.. The joys of Globalization ... Delusional Infosys Managers whose vision is enhanced by Corporate American shills legalizing Globalization and outsourcing with the likes of Tom Friedman who must be enjoying the profits from his "World is flat " type books and essays at the Hamptons !!

What are American techies waiting for ... unemployment to hit 80% ?

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United States L. Trotsky
July 23. 2011 09:06
L. Trotsky

Does Hewitt use H-1Bs? Bank of America just starting using Hewitt for payroll and the results are hilarious. They converted the previous 100% direct deposit into $100 deposit into checking account. Then when you tried to change this via the company webpage, it would refuse to allow 100% direct deposit in your checking account!!! A total failure of end-to-end testing, of requirements and design. In other words, your typical Indian clusterfcuk!!!!

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United States
July 24. 2011 00:38


"After a decade of this only 18 and against 1 firm ? Not too sure about US law but cant every American techie from scores of firms all over the country like IBM,SUN,Oracle affected by this practice over the last decade join in the lawsuit to see if the practice and business model is illegal ?

Cant this be a national lawsuit against the very business model against H1-B firms and outsourcers ?

Or is this now legal since IBM is the leader of the pack ?"

It has been tried many times before and failed. In 2001 when the slumdog/Chinese invasion started at Sun, Guy Santiglia, a replaced American Sun employee sued in 2002 to get his job back and lost - the courts sided with Sun and the Indiots - probably some Indians in Sun paid the judge off, or else he was a rabid communist like many of the gov't people are in No. Cal. They hate Americans. You can just hear them foaming at the mouth in behind closed doors or in the state assembly:


However, times have changed and since 9/11 and the 2008 collapse, many in D.C are finally listening to us. There are signs they are starting to deny visas to Indians and keeping them out. Don't think for one second the feds can't find out exactly who is in what companies, what they are doing, and whether or not they are destroying or creating jobs. The whole country basically knows the score and any politician still saying we need 3rd world workers knows he will be laughed out of office come next election.

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United States Indian_shit
July 24. 2011 17:37

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Canada ezygoer
July 25. 2011 01:19

@sound ..
Recall the 2001 Sun case .. firms were getting around the "law" by advertising in small Sunday papers for positions .. outsourcers were just getting onto the game .. the numbers were small and momentum building slowly...

By 2011 now the wipeout is almost complete .. some H1-B's have got greencards and the Model is firmly in place to replace American jobs with the likes of Infosys, Cognizant etc with IBM leading the charge.

So either the "laws" or the practice or the Business Model has to change to salvage something for the American techie. This should be done by re-examining these practises or one can always look across the Atlantic to Norway for a radical way to deal with the ENABLERS of this phenomenon !!

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Singapore Pat Lee
July 26. 2011 06:47
Pat Lee

Jack Palmar's testimony to the Senate Judiciary committee slated for later this morning.

However thetextt of his presentation is already available here :

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