Two former Walt Disney World tech employees filed federal lawsuits against the company Monday, accusing it and two outsourcing firms of conspiring to replace workers with less costly foreign ones using H-1B visas.
The lawsuits were filed in federal court, in the Middle District of Florida, by Leo Perrero and Dena Moore, who were among 250 Disney tech workers laid off about a year ago. The lawsuits seek class-action status.
Defendants include HCL Inc. and Cognizant Technologies.
Sara Blackwell, an attorney for the plaintiffs, said the lawsuits aim to “kick them [outsourcing companies] at their business model, to stop them from systemically abusing the immigration system.”
Disney said in a statement that “these lawsuits are based on an unsustainable legal theory and are a wholesale misrepresentation of the facts.” The company says it hired more than 100 people back into other roles and offered Moore another position at comparable pay. The company noted that hundreds of employers use H-1B visas and that it complies with all applicable employment laws.
HCL could not be reached for comment. Cognizant said in a statement it “fully complies with all U.S. regulations regarding H-1B visas. We have a robust internal compliance team that ensures our practices are not merely compliant with existing laws in letter and spirit, but also adhere to best practices.”
The lawsuits assert the companies violated federal law because the outsourcing firms were misleading when filling out forms to sponsor workers for the visas. The outsourcing firms said in forms under oath that working conditions of “similarly situated employees would not be adversely affected,” according to the lawsuits.
“Every time they file these, they are lying and falsifying documents,” Blackwell said. “Disney is aware there are these requirements and Cognizant and HCL are lying.”
Separately, about two dozen of the Disney workers who were laid off have made complaints to the Equal Opportunity Employment Commission. Those are still under review. Those complaints allege discrimination because of nationality, race and age. Also, because some workers say they had to train their replacements to receive bonuses and severance, Blackwell has said lawsuits stemming from the EEOC complaints will also likely allege a hostile work environment.
One of the plaintiffs in the suits filed Monday, Perrero, was recently featured in an ad by the Federation for American Immigration Reform, which opposes any increase in H-1B visas.
Congress created the H-1B visa program in 1990 to allow a limited number of foreign high-tech workers to fill jobs with a shortage of Americans. The program is capped at 85,000 six-year visas per year, although exemptions are allowed for people working in universities.
The visas have become a hot political issue. Companies such as Facebook have pushed for increases in them. A group called Partnership for a New American Economy, of which Walt Disney Co. Chief Executive Officer Bob Iger is co-chairman, also wants more of them issued. U.S. Sen. Marco Rubio, R-Fla., a Republican presidential candidate from Florida, has supported increases, too.
U.S. Sen. Bill Nelson, D-Fla., meanwhile, has introduced a bill that would cut the number. Nelson in June had asked for a Department of Homeland Security investigation into H-1B visas shortly after the replacement of the Walt Disney World workers came to light. Sen. Ted Cruz of Texas, another Republican presidential candidate, also introduced a bill with Sen. Jeff Sessions, R-Ala., to increase the minimum wage for H-1B holders to $110,000 annually.
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