KATZ v. TATA CONSULTANCY SERVICES, LTD.

CourtDistrict Court, D. New Jersey
DecidedAugust 10, 2023
Docket2:22-cv-07069
StatusUnknown

This text of KATZ v. TATA CONSULTANCY SERVICES, LTD. (KATZ v. TATA CONSULTANCY SERVICES, LTD.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
KATZ v. TATA CONSULTANCY SERVICES, LTD., (D.N.J. 2023).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

SHAWN KATZ,

Plaintiff,

v. Case No. 2:22-cv-07069 (BRM) (JRA)

TATA CONSULTANCY SERVICES, LTD., OPINION

Defendant.

MARTINOTTI, DISTRICT JUDGE Before the Court is a Motion to Dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) filed by Defendant Tata Consultancy Services, Ltd. (“TCS”). (ECF No. 15.) Plaintiff Shawn Katz (“Katz”) filed an opposition to the motion. (ECF No. 21.) TCS filed a reply. (ECF No. 23.) Having reviewed the parties’ submissions filed in connection with the motion and having declined to hold oral argument pursuant to Federal Rule of Civil Procedure 78(b), for the reasons set forth below and for good cause having been shown, TCS’s Motion to Dismiss is GRANTED IN PART and DENIED IN PART. I. BACKGROUND For the purpose of the motion to dismiss, the Court accepts the factual allegations in the Amended Complaint as true and draws all inferences in the light most favorable to Katz. See Phillips v. Cnty. of Allegheny, 515 F.3d 224, 228 (3d Cir. 2008). The Court also considers any “document integral to or explicitly relied upon in the complaint.” In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1426 (3d Cir. 1997) (quoting Shaw v. Digit. Equip. Corp., 82 F.3d 1194, 1220 (1st Cir. 1996)). This putative class action arises from TCS’s allegedly discriminatory employment practices that negatively “impact[] non-South Asians and non-Indians across the company, as well as applicants, who are disfavored in [] hiring, staffing, promotion, and termination/retention decisions.” (Am. Compl. (ECF No. 14) ¶ 1.) TCS is an information technology (“IT”) “consulting

company that is headquartered in Mumbai with its U.S. headquarters in Edison, New Jersey.” (Id. ¶ 4.) “TCS operates on a project-based model where companies contract with TCS to provide IT services . . . in lieu of maintaining in-house IT personnel.” (Id. ¶ 9.) TCS then deploys TCS employees to service the client company until the contract terminates. (Id. ¶ 10.) Employees are assigned to and removed from projects by TCS. (Id.) Once TCS employees cease work on a project, they are “place[d] in an unallocated status” which is commonly referred to as being placed “on the bench.” (Id.) When TCS employees are placed on the bench, the employee is unable to service any TCS clients until the employee fills other positions for different TCS clients. (Id.) To secure a new position with a different TCS client, benched employees must apply for specific roles with specific clients within TCS. (Id. ¶ 9.) “Both existing TCS employees and external applicants

must apply and interview for positions on TCS projects and compete for [] roles.” (Id.) If existing TCS employees remain on the bench for too long, TCS will terminate their employment. (Id. ¶ 10.) Katz is a naturalized U.S. citizen and resident of Texas, of Israeli national origin and Caucasian race, who brings several claims against TCS on behalf of himself and of a class of “[a]ll non-South Asians and non-Indians who (1) were employed by TCS, and met the criteria for a promotion, but were not promoted, and/or (2) were employed by TCS and were involuntarily terminated.” (Id. ¶¶ 2, 3, 30.) Katz began his employment with TCS in May 2013 when he joined as a “Program Manager” for TCS’s client, Microsoft. (Id. ¶ 23.) The position “Program Manager” is considered a level “C3B” position within TCS. (Id. ¶ 24.) In 2021, Katz transitioned to a new “C3B” position as “Business Relationship Manager” (“BRM”) for another TCS client, CommonSpirit Health. (Id.)

At the time Katz took the role, TCS informed him that despite BRM being a level “C3B” position, he would be promoted to level “C4” in his role as BRM. (Id.) In order to be promoted to level “C4”, TCS’s promotions policy requires the employee to: (1) have worked in a customer-facing role, (2) have spent at least three years in a level “C3B” position, and (3) have received an A or B rating for at least three years. (Id. ¶ 26.) By May 2022, Katz spent nine years in a customer-facing, level “C3B” role, and had received a B rating for at least five years in a row. (Id.) The “Client Partner of the CommonSpirit Health account” and two of Katz’s previous managers recommended him for promotion. (Id.) Katz was instead removed from the account and placed on the bench in April 2022. (Id.) Katz was informed his removal was due to budget cuts and was not related to his performance. (Id.) While on the bench, Katz proactively searched for new positions to fill by filing

applications to thirty-six different roles. (Id. ¶ 28.) None of Katz’s applications were successful, and he was ultimately terminated on June 13, 2022. (Id. ¶ 29.) Katz alleges TCS engages in a “systematic pattern or practice of discrimination against non-South Asian and non-Indian applicants and employees with respect to hiring, staffing, benching, termination and promotion decisions” by: (1) preferentially employing individuals of South Asian descent over individuals of non-South Asian descent, and (2) intentionally securing work visas for South Asian employees located outside of the U.S. and then preferentially utilizing these visa-holding employees over non-visa-holding employees for positions in the U.S. (Id. ¶¶ 11, 14–17, 29.) On December 7, 2022, Katz filed a Complaint against TCS. (ECF No. 1.) On March 3, 2023, Katz filed the Amended Complaint on behalf of himself and of a class of “[a]ll non-South Asians and non-Indians who (1) were employed by TCS, and met the criteria for a promotion, but were not promoted, and/or (2) were employed by TCS and were involuntarily terminated,”

alleging: (1) “Disparate Treatment on the Basis of Race in Violation of 42 U.S.C. § 1981” (“Count I”), (2) “Disparate Treatment on the Basis of Race and National Origin [in] Violation of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e-2” (“Count II”), and (3) “Disparate Impact on the Basis of Race and National Origin [in] Violation of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e-2” (“Count III”). (ECF No. 14 ¶¶ 2, 30, 39, 44, 49.) Katz seeks injunctive and declaratory relief, and damages. (Id. at 22–23.) On March 17, 2023, TCS filed a motion to dismiss. (ECF No. 15.) On April 3, 2023, Katz filed an opposition to the motion. (ECF No. 21.) On April 10, 2023, TCS filed a reply. (ECF No. 23.) II. LEGAL STANDARD A. Rule 12(b)(6)

In deciding a motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6), a district court is “required to accept as true all factual allegations in the complaint and draw all inferences from the facts alleged in the light most favorable to [the non-moving party].” Phillips, 515 F.3d at 228. “[A] complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007) (citations omitted).

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