October 16, 2016
By Steven Wishnia and Neal Tepel
Orlando, FL – A federal judge in Florida ruled Oct. 13 that the Walt Disney Company did not violate visa laws by bringing in foreign workers to replace its American information-technology staff in 2015.
District Judge Gregory A. Presnell rejected claims by two of the laid-off workers that Disney and the two outsourcing companies it hired had made false statements in applying for H-1B temporary visas for the imported workers, by declaring that hiring them “will not displace any similarly employed U.S. worker.” Presnell held that the workers brought in hadn’t directly displaced anyone, because they were employed by the two outsourcing companies, Cognizant Technology Solutions and HCL America, not by Disney. The layoffs drew attention because the American workers were forced to train their replacements. “This has become an effective business model in the IT industry, where two companies can come together and wipe out American jobs without much fear of legal action,” said Leo Perrero, one of the two plaintiffs. Read more