The Atlanta Journal Constitution reports that 30 laid-off Disney workers are filing a class-action suit against their former employer, alleging racial discrimination surrounding their termination of employment. The premise is that the primarily white male employees were replaced by H-1B work visa holders from India who were willing to work the same jobs for lower wages and benefits. The theory behind the lawsuit is unique, to say the least.

The incident took place a couple of years ago, when 250 employees of Disney’s IT department were informed that they would be laid off and replaced by the H-1B visa holders. To add insult to injury, the laid-off workers were told to train their replacements and that their severance packages would depend on their maintaining a “positive attitude.” Disney claimed that a number of other job opportunities were opened for the laid-off employees, something that is under dispute, even though some have been rehired.

A similar class action, alleging a RICO violation to violate immigration laws, was thrown out by the courts earlier. While the H-1B program is meant to find foreign workers to fill jobs for whom domestic workers are unavailable and not replace domestic workers, Disney and the outsourcing firm it used seems to have found a loophole allowing them to do what they did.

Disney is denying that racial discrimination took place but rather their decision to terminate the 250 employees was solely based on cost-cutting concerns. The question may revolve around whether the plaintiffs can prove intent or, failing that, the effect is sufficient to prove racial discrimination. The employees are demanding back pay and benefits with interest and reinstatement at a similar job.

For more information contact us.