Koehler v. Infosys Technologies Ltd.

107 F. Supp. 3d 940, 2015 U.S. Dist. LEXIS 60907, 127 Fair Empl. Prac. Cas. (BNA) 93, 2015 WL 2168886
CourtDistrict Court, E.D. Wisconsin
DecidedMay 8, 2015
DocketCase No. 13-cv-885-pp
StatusPublished
Cited by3 cases

This text of 107 F. Supp. 3d 940 (Koehler v. Infosys Technologies Ltd.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Koehler v. Infosys Technologies Ltd., 107 F. Supp. 3d 940, 2015 U.S. Dist. LEXIS 60907, 127 Fair Empl. Prac. Cas. (BNA) 93, 2015 WL 2168886 (E.D. Wis. 2015).

Opinion

DECISION AND ORDER ON DEFENDANTS’ MOTION TO DISMISS PLAINTIFFS’ SECOND AMENDED COMPLAINT

PAMELA PEPPER, District Judge.

This is a putative class action, alleging race and national origin discrimination in violation of Title -VII of the Civil Rights Act of 1964 and 42 U.S.C. § 1981: In the second amended complaint, which is operative, the plaintiffs -allege that defendants Infosys Technologies Limited, Inc. (ITL) and/or its wholly-owned subsidiary, Infosys Public Services, Inc. (IPS) intentionally discriminated against them in connection with hiring or employment decisions. Individual' plaintiffs Koehler and Parker allege that ITL used employment practices that caused a disparate impact against Caucasians on' the basis of their race or national origin.

The defendants moved to dismiss the complaint, including the class allegations, under Fed, R. Civ. Proc. 12(b)(6). (Dkt. No. 20.) For the reasons discussed below, the court concludes that the complaint adequately pleads claims (a) under Title VII for disparate treatment and disparate impact on the basis of race and national origin, and (b) under § 1981 for disparate treatment on the basis of race. The court further concludes that the plaintiffs’ class allegations are not implausible, and thus that the court will not dismiss them before permitting any discovery-. Accordingly, the court denies the defendants’ motion to dismiss, with two exceptions. First, the court dismisses the plaintiffs’ claims under § 1981 for national origin discrimination, because, as the plaintiffs have conceded, § 1981 does not support such a claim. Second, the court dismisses Koehler and Parker’s claims against IPS because, as the plaintiffs also have conceded, neither of them were employed by IPS or applied for employment with IPS.

I. BACKGROUND

The four plaintiffs allege that they are Caucasian individuals of American national origin, against whom ITL and/ or IPS made adverse hiring or employment decisions on the basis of their race and national origin. They seek to represent a class of similarly situated individuals. The complaint alleges that ITL and IPS are corporations organized and headquartered in India. The corporations have many offices located in the United States that are comprised predominantly — or in some cases, [943]*943entirely — of employees of the South Asian race and of Indian, Bangladeshi, and Nepalese national origin. (Dkt. No. 19, ¶ 22.) The complaint contains allegations describing the defendants’ discriminatory treatment of each of the plaintiffs, and describing the defendants’ alleged employment practices that cause a disparate impact against Caucasians. A detailed recitation of the allegations is not necessary for the purposes of deciding this' motion, but the court will set forth a summary of the material allegations.

The complaint alleges that, around 2011, ITL “began a concerted effort in the U.S. to purge non-South Asian employees in favor of South Asians,” and that ITL “has engaged in a systematic pattern and practice of discriminating against non-South Asian employees and in many instances replacing them with South Asian employees.” Id., ¶¶ 6, 96. The complaint alleges that plaintiff Gregory Handloser’s employment experiences with ITL reflect its discriminatory intent to purge non-South Asian employees in favor of South Asian employees. The complaint asserts that ITL hired Handloser in 2004 as a sales manager. Id., ¶ 6. In 2010, Handloser became the sales manager of the Manufacturing Business Unit. Id., ¶ 100. According to the complaint, as of 2012, that unit “consisted of about 180 employees, approximately 96% of whom were South Asian.” Id., ¶ 101. As alleged in the complaint, in 2011 and 2012, ITL began to set unrealistic goals for Handloser, denied him his bonuses, and fired him soon after he finalized a contract with a major client. Id., ¶ 6.

The plaintiffs allege that Layla Bolten’s experiences with IPS were typical of its discrimination1 “against non-South Asian individuals in its hiring, compensation, and promotion decisions.” Id., ¶77. Bolten alleges that IPS interviewed and hired her in Washington, D.C. Id., ¶ 82. According to the complaint, Bolten was told that she-would be a “Test Lead Analyst,” but ultimately IPS hired her as a “ ‘Test Analyst’ — a position of considerably lesser pay and responsibility.” Id., ¶¶ 82-83. Bolten claims that she repeatedly requested -a promotion to Test1 Lead, and was told she would receive it. Id., ¶¶ 86, 99. She alleges, however, that ITL “promoted South Asian workers and brought additional Indian workers ... to perform work for the testing project in spite of the fact that these workers had no experience as software testers.” Id., ¶ 5.

The plaintiffs also allege that, because of their race and national origin, ITL did not hire Caucasian Americans. Plaintiff Brenda Koehler, who lives in Milwaukee, alleges that she applied' and interviewed for a position with ITL to perform IT services; Id., ¶ 4. Koehler alleges that she “has advanced educational and work experience pertinent to the position Infosys was looking to fill,- interviewed with Infosys, and was denied a position in favor of a South Asian worker.” Id. Plaintiff Kelly Parker alleges that in 2012, she “was contracted to work under the management of Infosys and was providing IT services to Harley Davidson from Tomahawk WI[.-]” Id. Parker alleges that in September 2013, ITL “decided not to hire [her] permanently and terminated the contract under which [she] worked in favor of’ a South Asian worker who “Parker herself had trained and who moved to Tomahawk to replace her.” Id.

In addition to the plaintiffs’ individual experiences, the complaint contains allegations regarding the defendants’ purported intent to discriminate on the basis of race. The complaint alleges that two ITL executives, who' are South Asian, explicitly encouraged recruiters to focus their efforts on recruiting Indian candidates and dismissed complaints that highly qualified [944]*944American candidates were being rejected in favor of Indian candidates. Id. ¶¶ 28-30. The complaint further alleges that an ITL hiring manager stated: “There does exist an element of discrimination. We are advised to hire Indians because they will work off the clock without murmur and they can always be transferred across the nation without hesitation unlike [a] local workforce.” Id., ¶ 3.

The plaintiffs allege that the defendants achieve their discriminatory objectives, at least in part, by their practice of setting annual “visa quotas” to support the growth of their United States offices, hiring South Asian workers in sufficient numbers to meet those quotas, and securing visas for foreign workers to enter and work in the U.S. Id., ¶¶ 31-35. They allege that ITL sets annual growth targets for its U.S. offices, then budgets for the number (and expense) of additional foreign-worker visas ITL will need to secure in order to bring foreign workers into the U.S. to meet its targets. Id., ¶ 33. The complaint alleges that this practice results in annual visa quotas of South Asian workers to be hired and “employed within the U.S., irrespective of the fact that qualified workers exist in the U.S. that Infosys could use to support its U.S. business.” Id.

In their motion and brief, the defendants argue that the plaintiffs effectively are challenging the defendants’ use of the federal visa programs. (Dkt.

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107 F. Supp. 3d 940, 2015 U.S. Dist. LEXIS 60907, 127 Fair Empl. Prac. Cas. (BNA) 93, 2015 WL 2168886, Counsel Stack Legal Research, https://law.counselstack.com/opinion/koehler-v-infosys-technologies-ltd-wied-2015.