California-based data management firm has agreed to a settlement with the US Department of Justice (DOJ) and the Department of Labor following allegations that the company discriminated against qualified US workers when it filed for Green Cards for foreign workers.
The department added that the firm has been banned from participating in the Permanent Labor Certification (PERM) programme for two years. PERM is the mandatory first step for US employers to sponsor a foreign worker for a permanent employment-based green card.
Cloudera’s PERM suspension was announced earlier this year, before President ’s administration imposed a ban on eight tech companies, including Microsoft and Adobe.
Cloudera-DOJ settlement: What we know
In a release, the DOJ announced a fine of $1.4 million against Cloudera for violating the Immigration and Nationality Act (INA), saying the data management firm discriminated against US workers when recruiting and hiring for seven positions under the PERM process. The settlement also resolves a lawsuit the department filed in April this year, accusing the company of violating the INA.
The department said, “Cloudera will establish a back-pay fund of $1.4 million to compensate qualified U.S. workers who tried to apply for the jobs at issue but were not given fair consideration. Cloudera will also pay $600,000 in civil penalties to the .”
What’s next for Cloudera?
The statement added, “As part of the resolution, Cloudera will be barred from participating in the PERM program for two years, one of the most significant sanctions available for DOL to protect the integrity of the employment-based immigration system and safeguard opportunities for US workers. The debarment follows DOL’s earlier suspension of Cloudera’s PERM processing and reflects DOL’s commitment to aggressively enforcing labor certification requirements when employers fail to provide US workers a fair opportunity to compete for jobs.”
In addition to being barred for two years, the Santa Clara-based firm will also be subject to compliance obligations designed to ensure future adherence to federal labour and anti-discrimination laws. These measures include enhanced monitoring, revised PERM compliance procedures and reporting requirements intended to prevent future violations, the department said.
Here’s what DOJ’s Harmeet Dhillon said
Harmeet K. Dhillon, Assistant Attorney General of the DOJ’s Civil Rights Division, said, “There are no exceptions,” and added, “This substantial settlement, in partnership with DOL, sends a strong signal to employers that the federal government will work together to ensure employers treat U.S. workers fairly.”
Cloudera responds to settlement
According to Bloomberg Law, a Cloudera spokesperson said the company took corrective action immediately after learning that an email address used in its recruitment process was limited to internal employees. The spokesperson added, “Cloudera does not discriminate against anyone in making hiring decisions, and we remain firmly committed to fair, lawful, and open recruitment practices.”
14th settlement under workers initiative: DOJ
The Cloudera agreement marks the 14th settlement since the DOJ relaunched its Protecting US Workers Initiative in 2025. The initiative enforces the INA’s ban on citizenship-status discrimination, targeting employers accused of unlawfully favouring temporary visa holders over US workers.
Through these settlements, the DOJ secures civil penalties for individual violations and says it will continue seeking the maximum penalties allowed by law where appropriate. Agreements may also require back pay, extensive training for relevant employees and recruiters, and an end to hiring restrictions based on citizenship status unless legally justified.