The U.S. Equal Employment Opportunity Commission’s lawsuit alleged that HCL America instructed its hiring team to "explore diverse candidates" instead, categorizing "diverse" as non-Indian, female, or both. The company ultimately hired a younger, non-Indian candidate for the role.

According to the EEOC’s complaint, HCL America’s recruiters discussed goals to identify candidates based on gender and ethnicity. The company noted its willingness to dispense with relevant qualifications, including sales or IT experience, depending on the candidate.

The EEOC filed suit in U.S. District Court for the Northern District of California in August 2024, charging HCL America with violating the Age Discrimination in Employment Act and Title VII of the Civil Rights Act of 1964. The agency first attempted to resolve the matter through administrative conciliation.

Under a two-year consent decree approved by the court on April 2, 2026, HCL America will pay the rejected applicant $495,000. The company must also work with a third-party consultant to review and revise its policies and procedures concerning age and national origin discrimination.

Additionally, HCL America agreed to provide training to its recruitment personnel, managers, and supervisors on federal anti-discrimination requirements.

"This suit illustrates how discriminatory hiring in the name of achieving diversity can harm any applicant," EEOC Chair Andrea Lucas said in the agency’s press release. "The EEOC will continue to act to stop employers from unlawfully hiring based on protected characteristics."

Christopher Green, district director for the EEOC’s San Francisco District Office, stated that "hiring must be based on merit — not age or national origin — as the ADEA and Title VII requires."

Roberta L. Steele, regional attorney for the EEOC’s San Francisco District Office, emphasized that employers must ensure compliance with federal law and provide training for hiring managers and recruiters to prevent discrimination.