Tech Company Barred From Green Card Filings Amid H-1B Visa Crackdown

The tech company Cloudera Inc. will be barred for two years from participating in the federal Permanent Labor Certification (PERM) program, which allows businesses to sponsor foreign workers for permanent residency. According to the Justice Department, Cloudera agreed to a two-year ban and pay $2 million in payments as part of a settlement reached with the department and the Labor Department.

The PERM program requires companies to provide recruitment opportunities for U.S. workers before sponsoring foreign employees. The DOJ accused Cloudera of discriminating against U.S. workers during recruitment for seven PERM-related positions in April. The settlement also resolves a lawsuit filed by the Justice Department, which alleged that the company directed job applicants to an email address that could not receive outside messages.

As part of the agreement, Cloudera must establish a $1.4 million back-pay fund for eligible U.S. workers and pay $600,000 in civil penalties. The company will be prohibited from participating in the PERM program for two years, according to the DOJ. Assistant Attorney General Harmeet K. Dhillon emphasized that the department holds employers accountable who discriminate against U.S. workers.

Cloudera's spokesperson stated that the company took action to address the issue after discovering that an internal-only email was mistakenly used for recruitment. The Trump administration has been pushing for stricter oversight of the H-1B visa, which permits U.S. employers to hire foreign workers for specific roles. Earlier this month, the administration blocked several technology companies, including Adobe and Microsoft, from applying for green cards for their H-1B visa holders.