The United States government has barred California-based technology company Cloudera Inc. from sponsoring foreign workers for employment-based green cards for two years, following allegations that it discriminated against qualified American workers. The settlement, announced jointly by the US Department of Justice and the Department of Labour, resolves a lawsuit filed in April.
Allegations of Discrimination Under PERM Programme
The Justice Department alleged that Cloudera violated the Immigration and Nationality Act while recruiting for seven positions under the Permanent Labour Certification (PERM) programme. According to the allegations, Cloudera failed to provide qualified American workers with a fair opportunity to compete for these roles.
Applicants were reportedly directed to an email address that could not receive messages from external senders, potentially preventing them from submitting applications. The two-year debarment follows an earlier suspension of Cloudera's PERM processing by the Labour Department.
Financial Penalties and Compliance Measures
Under the agreement, Cloudera will establish a $1.4 million fund to compensate eligible American workers who attempted to apply for the positions but were denied fair consideration. The company will also pay $600,000 in civil penalties to the US government.
"There are no exceptions: the Justice Department will hold accountable employers who discriminate against US workers," said Assistant Attorney General Harmeet K. Dhillon of the Justice Department's Civil Rights Division. The company will also face enhanced monitoring, revised compliance procedures, and additional reporting requirements.
Impact on Foreign Workers and Green Card Applications
The PERM programme is a key step for employers seeking to sponsor foreign workers for employment-based green cards under the EB-2 and EB-3 categories. Employers generally must demonstrate that qualified, willing, and available American workers cannot be found for the positions, and that hiring foreign workers will not adversely affect the wages and working conditions of similarly employed US workers.
The restriction could disrupt green card applications sponsored by Cloudera, particularly those still requiring labour certification. Affected employees may experience delays or need to explore lawful alternatives, depending on their circumstances and the progress of their applications. However, the debarment does not automatically mean that every existing green card application sponsored by Cloudera will be cancelled.
Broader Context and Ongoing Initiatives
The case is relevant to Indian and Pakistani professionals pursuing permanent residency through employer sponsorship, but it does not introduce a general green card ban for citizens of either country. Existing rules on employment-based visa eligibility, annual limits, and country-specific allocations remain unchanged.
The Justice Department said the settlement was the 14th reached since it relaunched its Protecting US Workers Initiative in 2025. The initiative targets employers accused of unlawfully favouring foreign workers holding temporary employment visas over qualified Americans.
The development comes amid broader immigration scrutiny. On October 8, the Trump administration froze some green card filings involving Microsoft, Adobe, and major IT outsourcing companies while opening investigations into nine prominent universities, citing concerns about fraud and American job losses.
