The Justice Department on Tuesday sued Cloudera Inc., accusing the enterprise data and artificial intelligence company of deliberately engineering a hiring process that excluded American workers from at least seven lucrative technology positions while the firm pursued permanent residency sponsorship for foreign workers on temporary visas.
In a 14-page complaint filed with the Office of the Chief Administrative Hearing Officer, the department’s Civil Rights Division alleges that Cloudera, from March 31, 2024, through at least January 28, 2025, instructed job candidates to submit applications to a dedicated email address, [email protected], that rejected all external messages with an automated bounce-back error. The company did not advertise the roles on its public careers website or accept applications through its standard portal, as it did for non-sponsorship positions.
Cloudera then attested to the Department of Labor that it could not locate any qualified U.S. workers for the roles, which paid between approximately $180,000 and $294,000 annually, according to the filing. The positions included a Product Manager role in Santa Clara, California, with a listed salary range of $170,186 to $190,000.
The case marks one of the most detailed enforcement actions under the Justice Department’s Protecting U.S. Workers Initiative, which was relaunched last year and has already produced 10 settlements targeting employers accused of discriminating against American workers in favor of temporary visa holders.
“Employers cannot use the PERM sponsorship process as a backdoor for discriminating against U.S. workers,” Assistant Attorney General Harmeet K. Dhillon of the Civil Rights Division said in a statement. “The Division will not hesitate to sue companies who intentionally deter U.S. workers from applying to American jobs.”
On X, she wrote that the department had sued Cloudera “for discriminating against U.S. workers in favor of foreign visa holders for high-paying tech jobs” and warning employers that they are “on notice.”
We just sued Cloudera for discriminating against U.S. workers in favor of foreign visa holders for high-paying tech jobs. This is a violation of the Immigration & Nationality Act, & @CivilRights will not hesitate to sue employers for discriminating against U.S. workers! You are…
– AAGHarmeetDhillon (@AAGDhillon) April 28, 2026
A Technical Barrier With Regulatory Consequences
The complaint describes a recruitment system designed to satisfy the letter of permanent labor certification (PERM) rules while subverting their purpose. Under PERM, employers seeking to sponsor foreign workers for green cards must first demonstrate that no minimally qualified, willing, and available U.S. worker exists for the position through good-faith recruitment that mirrors normal hiring practices.
Cloudera posted the seven PERM-related jobs on a state job board, in newspapers, and in professional publications. But it deviated sharply from its standard process by refusing to list the positions on cloudera.com/careers and directing all applicants to the nonfunctional email address.
External candidates received a Google Groups error message stating that the group “may not exist, or you may not have permission to post messages to the group.” For at least nine months, Cloudera recorded no external applications through the address and made no effort to investigate or fix the issue. The company nevertheless certified in its PERM applications – under penalty of perjury – that it had conducted bona fide recruitment and found no qualified U.S. worker. No U.S. workers were hired for any of the seven positions during the relevant period.
One Worker’s Complaint Triggers Investigation
The investigation began after a single U.S. worker – the charging party, whose name is redacted – attempted to apply and received the bounce-back message. On January 10, 2025, the Immigrant and Employee Rights Section opened a charge-based investigation. Two months later, it launched an independent probe and concluded there was reasonable cause to believe Cloudera had engaged in a pattern or practice of citizenship-status discrimination, violating Section 1324b of the Immigration and Nationality Act.
The complaint brings three counts: deterring U.S. workers from applying, failing to consider applications that were submitted, and failing to hire qualified U.S. workers for positions the company had reserved for temporary visa holders.
Cloudera’s Dual Hiring Tracks
For regular, non-PERM vacancies during the same period, Cloudera advertised positions on its external website and accepted applications through its standard careers portal. Only the PERM-track roles – those intended to be filled through sponsorship of workers already on temporary visas such as H-1B – were funneled through the defective email channel. The filing describes this as a “separate recruitment and hiring process” that treated U.S. workers less favorably based on citizenship status.
Because Cloudera employed more than three workers during the relevant period, they’re subject to the anti-discrimination provisions of the INA.
If the allegations are proven, Cloudera could face civil penalties for each individual discriminated against, back pay and interest for affected workers, and injunctive relief requiring changes to its recruitment practices.