Nearshore Americas

Capgemini Settles $1 Million Lawsuit with Former Employees

French technology company Capgemini has reportedly agreed to pay nearly US$1 million to roughly 1,300 workers in order to settle a legal dispute over employee health benefits.

The settlement comes two years after two of its Indian employees filed a lawsuit in a US district court, alleging that the French technology services provider did not notify them of their right to make use of health insurance benefits.

The two employees worked intermittently in the company’s offices in India and the United States, according to Bloomberg BNM. They argued that whenever they were transferred to the company’s Indian offices their employment in the US was deemed terminated.

Under the US Consolidated Omnibus Budget Reconciliation Act (COBRA), employers with 20 or more workers are required to offer their former employees the option to continue their healthcare benefits.

At the court, the employees alleged that Capgemini violated COBRA by not informing them of the right to continue health insurance coverage when they were transferred between the US and India.

The lawsuit, filed in 2016, also pointed to Capgemini’s business model, which bills clients for services performed by its technology workforce.

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Capgemini has not admitted liability, according to Bloomberg, but both parties have now agreed that the settlement sum was fair and reasonable.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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