Washington, April 9 (NationPress) - The US Department of Justice has successfully negotiated a $313,420 settlement with a technology services company based in New Jersey, after uncovering that its recruitment practices utilized job postings that deterred American workers while favoring foreign visa holders.

The Civil Rights Division revealed that Compunnel Software Group Inc. breached the Immigration and Nationality Act by advertising positions with illegal citizenship requirements that excluded US citizens and permanent residents, instead prioritizing candidates holding H-1B and other temporary visas.

“It is unlawful to dissuade US workers from applying for jobs available in their own country,” stated Assistant Attorney General Harmeet K. Dhillon. “Employers cannot marginalize US workers from the job market through discriminatory practices based on citizenship.”

As part of the settlement, the company will provide $58,000 in back pay to a US citizen who was overlooked for a Python developer position due to his citizenship. Additionally, it will pay $255,420 in civil fines to the US Treasury.

Federal investigators indicated that there was “reasonable cause to believe” the company engaged in a systematic pattern of discriminatory hiring behaviors, including emails and job advertisements that indicated “only” certain temporary visa holders were eligible for roles, effectively shutting out US applicants.

The investigation revealed that at least ten recruiters participated in this practice, with over 50 job postings containing such exclusions that unjustly dismissed protected US workers.

The settlement agreement mandates the company to reform its hiring processes, ensuring that it does not “discriminate against applicants or employees based on citizenship status without legal grounds,” during recruitment, hiring, or employment verification.

Compunnel has committed to providing mandatory training for its hiring and recruitment staff, updating its internal policies, and displaying notices that inform workers of their rights. The company is also required to monitor compliance and report regularly to federal authorities over the next two years.

This case is part of the Justice Department’s renewed enforcement strategy under the Protecting US Workers Initiative, which was re-established in 2025. This marks the ninth settlement under this initiative, which targets businesses that favor foreign visa holders over American workers in violation of federal regulations.

The department emphasized that these settlements generally involve civil penalties, back pay where appropriate, and necessary compliance changes to prevent future infractions.

While agreeing to the settlement, the company stated that it does not admit to any liability and will continue to adhere to relevant US laws.

The Immigration and Nationality Act prohibits discrimination based on citizenship status unless mandated by law, regulation, or government contract. The enforcement of these provisions is managed by the Justice Department’s Immigrant and Employee Rights Section.

The H-1B visa program, commonly utilized by tech firms, allows US employers to hire foreign talent in specialized fields. It has been a focal point of policy discussions, particularly regarding its effects on local employment and wage dynamics.

In recent years, federal authorities have increased their scrutiny of recruitment practices to ensure that US workers are not unjustly excluded from job opportunities in favor of visa holders.