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Cognizant Technology Resolves Class Wages Suit for $5.7 Million

Jan. 19, 2021, 7:58 PM

Cognizant Technology Solutions will pay $5.7 million to resolve class claims that it failed to fully compensate quality assurance analysts for overtime, according to a U.S. District Court for the Eastern District of California order finally approving the settlement.

Judge Troy L. Nunley’s Dec. 15 order also approved payment in the amount of $1.4 million for attorneys’ fees and $24,040 for expenses to class counsel, Clayeo C. Arnold APC. Class representative Debi Mishra will receive a $10,000 enhancement award.

Whatever remains after accounting for administrative costs, attorneys’ fees and expenses, the enhancement award, and employer taxes will be distributed to two classes, with 97.2% of the fund going to a California class, and 2.8% going to an “FLSA class.”

The classes comprise individuals who were eligible to receive “Tru Up” payments, which were bonuses Cognizant periodically paid to ensure plaintiffs reached a guaranteed annual income. The lawsuit alleged, and Cognizant denied, that the class members were entitled to overtime wages, and that the overtime rate, if based on total income, should have taken the bonus payments into account.

Of the California class fund, 69.2% will go to releasing any wage and hour claims that were or could have been asserted, based on the conduct alleged, under state law.

The remaining 30.8% will go to releasing any wage, compensation, or record-keeping claims that were or could have been asserted based on the alleged conduct under the Fair Labor Standards Act and “any other similar state or federal law” through June 1, 2020, or the date the settlement received preliminary approval.

Cognizant entities were represented by Orrick, Herrington & Sutcliffe LLP.

The case is Mishra v. Cognizant Tech. Sols., E.D. Cal., No. 2:17-cv-01785, 1/15/21.

To contact the reporter on this story: Holly Barker in Washington at hbarker@bloombergindustry.com

To contact the editors responsible for this story: Rob Tricchinelli at rtricchinelli@bloomberglaw.com; Patrick L. Gregory at pgregory@bloomberglaw.com

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