Washington, April 9 – The US Justice Department has reached a $313,420 settlement with a New Jersey-based technology services firm after finding that its recruiters used job advertisements that discouraged American workers and favored foreign visa holders.
The Civil Rights Division said Compunnel Software Group Inc. violated the Immigration and Nationality Act by posting vacancies that included unlawful citizenship restrictions, excluding US citizens and permanent residents while preferring candidates on H-1B and other temporary visas.
“It is illegal to discourage US workers from applying for American jobs,” said Assistant Attorney General Harmeet K. Dhillon. “Employers cannot exclude US workers from the labor force by discriminating against them based on their citizenship status.”
Under the settlement, the company will pay $58,000 in back pay to a US citizen who was denied consideration for a Python developer role due to his citizenship status. It will also pay $255,420 in civil penalties to the US Treasury.
According to the settlement document, federal investigators found “reasonable cause to believe” that the company engaged in a pattern of discriminatory recruitment practices, including emails and job postings that specified “only” certain temporary visa holders for positions while rejecting US applicants.
The investigation further found that at least ten recruiters were involved and that more than 50 job postings carried such restrictions, effectively excluding protected US workers without legal justification.
The agreement requires the company to overhaul its hiring practices. It must not “discriminate against applicants or employees based on citizenship status absent a legal justification,” including during recruitment, hiring, or employment verification processes.
Compunnel has also agreed to conduct mandatory training for employees involved in hiring and recruitment, revise internal policies, and post notices informing workers of their rights. 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 forms part of its renewed enforcement push under the Protecting US Workers Initiative, relaunched in 2025. This is the ninth settlement under the initiative, which targets companies that favor foreign visa holders over American workers in violation of federal law.
The department noted that such settlements typically include civil penalties, back pay where applicable, and mandatory compliance reforms to prevent repeat violations.
The company, while agreeing to settle, maintained that the agreement does not constitute an admission of liability. It said it would continue to comply with applicable US 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 programme, widely used by technology companies, allows US employers to hire foreign workers in specialized occupations. It has long been a point of policy debate, particularly around its impact on domestic employment and wage levels.
Federal authorities have in recent years stepped up scrutiny of hiring practices to ensure that US workers are not unfairly excluded from job opportunities in favor of visa holders.