HCL America, headquartered in Santa Clara, California, will pay the settlement amount and undergo policy reforms under a two-year consent decree approved April 2, 2026, by the U.S. District Court for the Northern District of California. The settlement resolves an EEOC lawsuit filed in August 2024 alleging the company violated both the Age Discrimination in Employment Act and Title VII of the Civil Rights Act of 1964.
According to the EEOC's complaint, HCL America in July 2021 rejected a qualified 62-year-old job applicant of Indian descent for a sales director position, with company personnel stating in an email to the hiring team that he was "too old" and instructing them to "explore diverse candidates." The lawsuit alleged that HCL categorized candidates as "diverse" if they were non-Indian, female, or both, and in subsequent communications with recruiters, the company reiterated requests for diverse candidates and discussed goals to identify candidates based on gender and ethnicity.
Under the consent decree, HCL America must work with a third-party consultant to review and revise its policies and procedures concerning age and national origin discrimination. The company will also provide training to recruitment personnel, managers and supervisors on federal anti-discrimination requirements. The settlement provides $495,000 in monetary relief to the rejected applicant, while a younger, non-Indian candidate was ultimately hired for the position.
The case reflects broader EEOC enforcement efforts targeting discrimination in hiring practices, particularly where companies' diversity initiatives may inadvertently violate federal employment laws. The EEOC's San Francisco District Office, which filed the lawsuit after unsuccessful pre-litigation conciliation efforts, has jurisdiction over Northern California, Northern Nevada, Washington, Alaska, Oregon, Idaho, and Montana.
"This suit illustrates how discriminatory hiring in the name of achieving diversity can harm any applicant," said EEOC Chair Andrea Lucas. "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, added that "hiring must be based on merit — not age or national origin — as the ADEA and Title VII requires."
"Employers must ensure they are in compliance with federal law and provide training for hiring managers and recruiters to understand their responsibilities to prevent age and national origin discrimination," said Roberta L. Steele, regional attorney for the EEOC's San Francisco District Office. The agency encourages all employers to adopt policies and provide training to prevent discrimination.
The settlement demonstrates the EEOC's commitment to evenhanded enforcement of anti-discrimination laws and signals potential scrutiny of diversity hiring practices that may inadvertently discriminate against protected classes. For employment attorneys, the case underscores the importance of ensuring that diversity and inclusion initiatives comply with federal employment law requirements and do not create liability under the ADEA or Title VII.