WASHINGTON (Diya TV) — The U.S. Department of Justice has filed a lawsuit against Cloudera Inc., accusing the tech company of discriminating against U.S. workers in favor of foreign visa holders. Federal officials say the alleged actions violate the Immigration and Nationality Act and undermine fair hiring practices in high-paying technology jobs. The case highlights growing scrutiny of hiring practices in the tech industry, especially around visa programs and recruitment policies.
The Justice Department’s Civil Rights Division announced the lawsuit as part of its broader enforcement efforts. The complaint claims Cloudera created hiring practices that discouraged or blocked qualified U.S. workers from applying for certain roles.
According to officials, the company allegedly set up a separate recruitment process for positions it intended to fill with temporary visa holders. This approach, the government argues, excluded U.S. applicants from consideration. Assistant Attorney General Harmeet K. Dhillon said employers must follow the law when recruiting workers. She warned that companies cannot misuse immigration programs to bypass American talent.
“Employers cannot use the PERM sponsorship process as a backdoor for discriminating against U.S. workers,” Dhillon said in a statement.
The lawsuit focuses heavily on the Permanent Labor Certification Program, known as PERM. This program allows employers to sponsor foreign workers for green cards. However, the law requires companies to first test the U.S. labor market and consider qualified American workers. Federal officials allege Cloudera failed to meet that obligation. The complaint claims the company did not conduct recruitment in good faith and instead designed a process that limited access for U.S. applicants.
In one example, the company allegedly instructed candidates to apply through an email account that could not receive messages from external users. A U.S. worker who tried to apply reportedly received a bounce-back notification and could not submit an application. Authorities say such practices effectively prevented U.S. workers from competing for the jobs.
The case centers on lucrative technology roles, which often attract both domestic and international talent. The Justice Department argues that companies must ensure equal opportunity for all qualified candidates, regardless of citizenship status. Officials say discrimination in these roles can have wide economic effects. It can limit access to high-paying jobs for U.S. workers and distort the labor market. Cloudera, based in Santa Clara, California, has not publicly responded in detail to the allegations as of this report.
The lawsuit falls under the Justice Department’s Protecting U.S. Workers Initiative, which was relaunched in 2025. The program targets companies that favor temporary visa holders over U.S. workers in violation of federal law. Officials say the initiative has already produced multiple settlements over the past year. These cases aim to ensure that employers follow fair hiring practices and comply with immigration laws. The Civil Rights Division has increased its focus on enforcement in industries where visa programs play a major role, including technology and engineering.
The complaint was filed with the Office of the Chief Administrative Hearing Officer. This office handles cases involving immigration-related employment discrimination. If the government proves its case, Cloudera could face penalties and be required to change its hiring practices. The outcome may also influence how other tech companies handle recruitment and visa sponsorship. Legal experts say the case could set an important precedent. It may clarify how far companies can go when structuring hiring processes tied to immigration programs.
