California-based data management company Cloudera has agreed to a $2 million settlement with the US Department of Justice and Department of Labor over allegations of discriminating against qualified US workers in its Green Card sponsorship process. The settlement, announced this year, includes a two-year ban on Cloudera from participating in the Permanent Labor Certification (PERM) program, the mandatory first step for sponsoring foreign workers for permanent employment.
The Department of Justice fined Cloudera $1.4 million for violating the Immigration and Nationality Act by discriminating against US workers during recruitment and hiring for seven positions under the PERM process. Cloudera will establish a back-pay fund of $1.4 million to compensate qualified US workers who were unfairly denied job consideration. Additionally, the company will pay $600,000 in civil penalties to the US government. The settlement resolves a lawsuit filed by the DOJ in April accusing Cloudera of these violations.
The PERM suspension adds to a list of tech companies facing restrictions under the Trump administration, which previously banned eight firms including Microsoft and Adobe from the program. The case highlights ongoing scrutiny of tech companies’ hiring practices for foreign workers amid concerns about discrimination against US applicants. Cloudera’s settlement and penalties underscore enforcement of immigration laws in the technology sector.
The two-year PERM ban on Cloudera takes effect immediately, preventing the company from sponsoring foreign workers for permanent employment during this period, according to the Department of Justice statement.