New Jersey Federal Court upholds class action suit against L & T

The federal court in New Jersey has upheld class claims for sex discrimination against India-based Larsen & Toubro, and its U.S. subsidiary L&T Infotech.

The lawsuit seeks damages of not less than $20 million on behalf of a class of about 1,500 past and present women employees, and injunctive and declaratory relief to stop further misconduct.

The lawsuit, brought by New York attorney Krishnan Chittur on behalf of a former L&T employee Deepa Shanbhag, alleges that L&T Infotech, LLC, a subsidiary of the engineering giant Larsen & Toubro of Mumbai,discriminated against her and other women employees on grounds of sex and pregnancy.

According to the complaint, L&T hired Ms. Shanbag after she had worked as an independent contractor with them for several months. L&T consistent praised her performance, but fired her the day after she informed them of her pregnancy. The complaint details allegations of unrelenting barrage of sexual harassment and criticism of women employees from Defendants' managers. L&T fostered an intense climate of hostility towards women at the workplace that was both subjectively and objectively threatening to Ms. Shanbhag and other Class members, interfering with their ability to perform their work, it said. L&T had moved to dismiss the entire lawsuit.

By an order of February 14, 2012, the Court upheld most of the claims. While it dismissed class claims under federal law, it upheld those claims under New Jersey law. L&T Infotech is a New Jersey company. “We are delighted with the Court’s decision” said Chittur. “Now L&T will have to answer before a jury for its maltreatment of women, and pay these women compensation for what these women had to suffer.”

The top Indian software exporter L&T Infotech, a subsidiary of engineering and construction conglomerate L&T, is among the first Indian companies to be accused of discriminating against pregnant women employees in the US.

Deepa Shanbhag brought a class action suit against its wholly owned US subsidiary citing sexual harassment and discrimination, and has sought compensation in a US district court. The suit alleged the company terminated her employment a day after she told her immediate superior that she was expecting.

Shanbhag was employed with L&T Infotech's US arm as a contractor since October 2010, and the company praised her performance and hired her as an employee in January 2011. She was sacked 38 days later, according to the class action complaint filed in a New Jersey district court.

An L&T Infotech official said Shanbhag lost her job because the "position had expired, and there was no mala fide intention in the termination". "We have not violated any employment law provisions. The company has a strong written code and believes in providing a workplace free of any kind of harassment," he said.

The complaint, being brought on behalf of a class of all past, present and future female employees, has alleged that during her employment, there was systematic discrimination against her and the class by wrongfully and unlawfully terminating employees under false pretenses, on the basis of sex or pregnancy. She also alleges being subjected to what the suit terms an unrelenting barrage of sexual harassment and criticism of other female employees from managers.

The class action complaint alleges an intensely hostile work environment permeated with harassment and verbal abuse, which the company by failing or refusing to act or take remedial action, condoned.

So far, the only high profile US lawsuit involving an Indian firm in a sexual harassment case was by Reka Maximovitch against Infosys and Phaneesh Murthy, who was head of global sales in Infosys.

"We want to affect a corporate change," said Chittur. "Usually, affected employees don't come forward because they are afraid they will lose their jobs. There is also a certain stigma and hesitation attached to such cases, so we don't expect people to come forward at this stage," he said.

The class action compliant asks that "not less that $ 20 million, as may be determined after discovery and trial including without limitation back pay, front pay, benefits, and such other amounts" be awarded to Shanbhag and the class members. It also asks for reinstatement of all class members who may be desirous of it, and that the company "institute and implement policies, practices and programs to provide equal employment opportunities for women."

- Asian Tribune -

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