WASHINGTON: The United States (US) has barred California-based technology company Cloudera Inc. from participating in the employment-based green card sponsorship process for two years and secured a $2 million settlement over 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 by the Justice Department in April alleging that Cloudera violated the Immigration and Nationality Act while recruiting for seven positions under the Permanent Labour Certification (PERM) programme.
Under the agreement, Cloudera will establish a $1.4 million fund to compensate qualified US workers who attempted to apply for the positions but were not given 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,” Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division said.
#BREAKING: The DOJ and Labor Department barred tech firm Cloudera from the green card sponsorship program for two years, saying it discriminated against qualified American workers during hiring. The company agreed to $2 million in back pay and penalties. (DOJ)
— CentcomUSA (@CentcomUSA) October 17, 2026
The case highlights the potential consequences for technology companies that fail to provide American workers with a fair opportunity to compete for jobs before seeking permission to recruit foreign employees through employment-based immigration programmes.
According to the allegations, Cloudera’s recruitment process for the seven positions did not provide qualified American workers with a fair opportunity to apply. Applicants were reportedly directed to an email address that did not accept 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 Department of Labour. During the debarment period, the company will be unable to use the PERM programme to sponsor foreign workers for employment-based green cards.
The PERM process is generally the first major step when an employer seeks to sponsor a foreign worker for permanent residency under the employment-based EB-2 or EB-3 categories.
Employers must normally demonstrate that no qualified, willing and available American workers can be found for the position and that hiring a foreign worker would not adversely affect the wages and working conditions of similarly employed US workers.
Potential impact on foreign employees
The decision could disrupt green card applications sponsored by Cloudera, including those of Indian and Pakistani professionals seeking permanent residency through employer sponsorship.
Employees whose cases depend on the company obtaining labour certification could face delays or need to explore lawful alternatives, depending on their individual circumstances and the stage of their applications.
However, the debarment does not automatically mean that every existing green card application sponsored by Cloudera will be cancelled. Nor does the settlement impose a general ban on green cards for Indian or Pakistani nationals.
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The wider US immigration rules remain unchanged. The settlement does not alter employment-based visa eligibility requirements, annual numerical limits or country-specific visa allocation rules.
The agreement also requires Cloudera to strengthen its compliance procedures and meet enhanced monitoring and reporting requirements designed to prevent future violations.
Part of wider enforcement drive
The Justice Department said the settlement was the 14th secured 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 American workers.
The case comes amid a wider tightening of US immigration enforcement affecting the technology sector and other institutions employing foreign professionals.
On October 8, the Trump administration froze some green card filings involving Microsoft, Adobe and major IT outsourcing companies, while also opening investigations into nine prominent universities.
The moves broadened an immigration crackdown that the administration says is aimed at preventing fraud and protecting American jobs.
The Cloudera settlement reinforces the obligation on employers seeking labour certification to provide American workers with a genuine opportunity to compete for advertised positions before sponsoring foreign employees for permanent residency.
