The US Justice Department and Department of Labor have reached a $2 million settlement with data management company Cloudera over allegations that it discriminated against qualified American workers during recruitment for employment-based green cards, barring the company from the labor certification program for two years.
Announced on October 16, the settlement requires Cloudera to establish a $1.4 million fund to compensate eligible US workers through back pay and pay $600,000 in civil penalties to the federal government. The company, headquartered in Santa Clara, California, will also face enhanced monitoring, revised compliance procedures and reporting requirements.
The action comes as the Trump administration intensifies enforcement of rules governing employment-based immigration, with a focus on protecting American workers during recruitment for jobs that employers seek to fill with foreign nationals.
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What the US alleged against Cloudera
The Justice Department filed a lawsuit against Cloudera in April 2026, alleging that the company violated the Immigration and Nationality Act by discriminating against US workers while recruiting for seven positions through the Permanent Labor Certification (PERM) program.
Under PERM rules, employers generally must demonstrate that qualified, willing and available US workers could not be found for the positions and that American candidates received a genuine opportunity to apply before the employer proceeds with the relevant green card sponsorship process.
According to the Justice Department’s announcement, the settlement provides compensation for qualified US workers who attempted to apply for the positions but were not given fair consideration.
The Labor Department had previously suspended Cloudera’s PERM processing. The latest agreement adds a two-year debarment, one of the significant sanctions available to the department for violations of labor certification requirements.
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Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division said the settlement sent a signal that employers would be held accountable for discrimination against US workers.
The agreement resolves the lawsuit, but the allegations should not be treated as findings established through a full trial.
What the PERM ban means for green cards
PERM is a key step in many employer-sponsored green card applications. Employers generally need labor certification from the Labor Department before filing the relevant employment-based immigrant petition, subject to category-specific rules and exemptions.
Cloudera’s debarment prevents it from participating in the PERM program during the two-year period. The announcement does not describe the measure as a blanket ban on hiring foreign nationals under every US visa category.
For Indian professionals working in the US technology sector, the case highlights how employer compliance can affect employment-based permanent residence pathways. Many foreign workers depend on their employers to complete the required sponsorship procedures.
Fourteenth settlement under worker protection initiative
The Justice Department said the agreement was the 14th settlement since it relaunched its Protecting US Workers Initiative in 2025.
The initiative targets alleged violations of federal protections against citizenship-status discrimination, including cases involving employers accused of unfairly favoring temporary visa holders over qualified US workers.
Settlements may include financial penalties, back pay, staff training and changes to recruitment practices. The Cloudera agreement combines financial compensation with a two-year PERM exclusion and continuing compliance obligations, reinforcing the administration’s scrutiny of employer-sponsored immigration.
