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Were Employees Required to Sign Tax Refunds Over to Employer?

An employee has filed a class action lawsuit in a San Francisco federal court
claiming that his employer required foreign employees to sign over their federal
and state tax refund checks to the company.

The lawsuit was filed by Gopi Vedachalam, a citizen of India, against
Tata American International Corp., which is a U.S. subsidiary of Indian company
Tata Consultancy Services. Vedachalam charges that he signed over roughly
$25,000 in tax refunds since his hire in 2000. He claims the company didn’t
impose a similar requirement on U.S. citizens.

In addition to the tax-refund allegations, the suit claims Tata
maintained a vacation policy under which employees could only carry over five
vacation days each year and any remaining days were forfeited. Such
use-it-or-lose-it policies are illegal in California.


400+ pages of state-specific, easy-read reference materials at your fingertips—fully updated! Check out the Guide to Employment Law for California Employers and get up to speed on everything you need to know.


Additional Resource:

California Division of Labor Standards Enforcement Vacation FAQ

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