The Justice Department has secured a $313,420 settlement with a New Jersey-based technology services firm after finding that its recruiters used job advertisements that discouraged American workers and favored foreign visa holders.
The Civil Rights Division said Compunnel Software Group Inc violated the Immigration and Nationality Act by posting vacancies that included unlawful citizenship restrictions, excluding US citizens and permanent residents, while preferring candidates on H-1B and other temporary visas.
“It’s illegal to discourage US workers from applying for American jobs,” said Assistant Attorney General Harmeet K Dhillon. “Employers cannot exclude US workers from the labor force by discriminating against them based on their citizenship status.”
Under the settlement, the company will pay $58,000 in back pay to a US citizen who was denied consideration for a Python developer role due to his citizenship status. It will also pay $255,420 in civil penalties to the US Treasury.
According to the settlement document, federal investigators found “reasonable cause to believe” the company engaged in a pattern of discriminatory recruitment practices, including emails and job postings that specified “only” certain temporary visa holders for positions while rejecting US applicants.
The investigation further found that at least ten recruiters were involved and that more than 50 job postings carried such restrictions, effectively excluding protected US workers without legal justification.
Compunnel has also agreed to conduct mandatory training for employees involved in hiring and recruitment, revise internal policies, and post notices informing workers of their rights. The Justice Department said the case forms part of its renewed enforcement push under the Protecting US Workers Initiative, relaunched in 2025.
