U.S. Secures $313,000 Settlement Over Discriminatory Hiring Practices Favoring Visa Holders
WASHINGTON, D.C. — The U.S. Department of Justice has reached a $313,420 settlement with a New Jersey-based technology services firm after determining that its job advertisements unlawfully discouraged American workers and favored foreign visa holders.
The Justice Department’s Civil Rights Division said Compunnel Software Group Inc. violated the Immigration and Nationality Act by posting job listings that imposed citizenship restrictions, excluding U.S. citizens and permanent residents while preferring candidates on H-1B and other temporary visas.
“It’s illegal to discourage U.S. workers from applying for American jobs,” said Assistant Attorney General Harmeet K. Dhillon. “Employers cannot exclude U.S. workers from the labor force by discriminating against them based on their citizenship status.”
As part of the settlement, the company will pay $58,000 in back pay to a U.S. citizen who was denied consideration for a Python developer position due to his citizenship status. It will also pay $255,420 in civil penalties to the U.S. Treasury.
Federal investigators found what they described as “reasonable cause to believe” the company engaged in a pattern of discriminatory recruitment practices. These included emails and job postings that specified “only” certain temporary visa holders for positions while rejecting U.S. applicants.
The investigation determined that at least 10 recruiters were involved and that more than 50 job postings contained such restrictions, effectively excluding protected U.S. workers without legal justification.
Under the agreement, Compunnel must overhaul its hiring practices and is prohibited from discriminating based on citizenship status unless legally required. The company is also required to implement mandatory training for employees involved in recruitment, revise internal policies, and post notices informing workers of their rights.
Additionally, the firm must monitor compliance and report regularly to federal authorities during the two-year term of the agreement.
The Justice Department said the case is part of its renewed enforcement efforts under the Protecting U.S. Workers Initiative, relaunched in 2025. This marks the ninth settlement under the initiative, which targets companies that unlawfully favor foreign visa holders over American workers.
Officials noted that such settlements typically include civil penalties, back pay for affected workers, and required compliance measures to prevent future violations.
Compunnel agreed to the settlement but said it does not constitute an admission of liability. The company stated it will continue to comply with applicable U.S. regulations.
The Immigration and Nationality Act prohibits discrimination based on citizenship status unless required by law, regulation, or government contract. Enforcement of these provisions falls under the Justice Department’s Immigrant and Employee Rights Section.
The H-1B visa program, widely used by technology companies, allows U.S. employers to hire foreign workers in specialized occupations and has long been the subject of debate over its impact on domestic employment and wages.
Federal authorities in recent years have increased scrutiny of hiring practices to ensure U.S. workers are not unfairly excluded from job opportunities in favor of visa holders. (Source: IANS)
