Cognizant Technology Solutions will pay $5.7 million after being accused of violating federal and state labor laws. The dispute, affecting two Classes, concerns wage and hour infractions.

In August 2017, an employee filed a complaint against Cognizant Technology Solutions for failing to pay employees proper overtime wages. The plaintiff claimed that the company discounted Tru Up bonuses – retroactive overtime payment in the form of an end of year bonus – when determining regular pay rates. This led to inaccurate, lower calculated regular pay rates and resulted in lower overtime pay. 

A forensic economist, hired by the plaintiff, estimated that this inaccuracy cost workers $11.2 million.

Cognizant Technology Solutions has not admitted any fault. The court scheduled the final settlement hearing for November 12, 2020.

Who will benefit from the settlement?

Two Classes of individuals will be eligible to receive payments from the settlement fund.

  • FLSA Class: individuals who worked for Cognizant Technology Solutions between August 25, 2014, and June 1, 2020, and were eligible to receive Tru Up payments during this time.
  • California Class: individuals who worked for Cognizant Technology Solutions between August 25, 2013, and June 1, 2020, and were eligible to receive Tru Up payments during this time.

These individuals should have already received a settlement notice and must submit an opt-in form to receive settlement funds.

How do Class Members ensure they will receive their portion of the settlement fund?

Class Members must file an opt-in form by September 4, 2020. To register, Class Members must submit their claim number and the unique PIN on their settlement notice.

Individuals that did not receive a settlement notice, but believe they should have, should contact the settlement administrator.

How much money will eligible Class Members receive?

The settlement fund will be distributed between California Class Members and FLSA Class Members as follows:

  • 97.2% of the money will be used to compensate California Class Members.
    • California Class Members will collect 69.2% of the fund.
    • California Class Members who opt into the FLSA Class will receive 30.8% of the fund.
  • Non-California Class Members of the FLSA Class will take the remaining 2.8% of the fund.

The fund will provide cash payments based on the number of weeks the individual worked at Cognizant Technology Solutions during the Class period.

California Class Action Lawsuit Attorneys

When a group of employees shares a common complaint against their employer, they can seek a class-action lawsuit. 

In California, class-action lawsuits hold employers accountable for wrongful actions against their workforce, protecting future employees from harm and compensating past or current employees.

At the Workplace Rights Law Group, our class action lawsuit attorneys passionately advocate for California workers.

With nearly 100 years of combined experience in employment law and millions of dollars recovered for our clients, we know how to take on large companies like Cognizant Technology Solutions.

If you suspect your rights as an employee were violated, our lawyers are here to help you. Give us a call at (818) 844-5200 for a free case review.


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