(Co-author: Leah Shepherd)
On April 6, 2026, the U.S. Department of Justice’s Immigration and Employee Rights Division announced a settlement with a New Jersey-based IT staffing company over claims that the language used in its job advertisements favored H-1B visa holders, thereby discriminating against American citizens.
Quick Hit
The Department of Justice has reached a settlement of $313,420 with an IT staffing company following allegations of discrimination against U.S. citizens in its job postings. This case underscores the federal commitment to preventing discrimination based on race, ethnicity, citizenship status, and national origin, including U.S. citizenship. The settlement reflects the Trump administration’s heightened focus on combating perceived anti-American bias in employment practices.
Title VII of the Civil Rights Act of 1964 serves to prohibit discrimination in employment based on race, ethnicity, or national origin, which includes U.S. citizenship. This legislation applies to various employment aspects, including hiring, firing, compensation, promotions, benefits, and other terms of employment. In conjunction with this, Section 274B of the Immigration and Nationality Act prohibits employers with four or more employees from engaging in discriminatory practices based on citizenship status or national origin during the hiring process.
The Justice Department, alongside the U.S. Equal Employment Opportunity Commission (EEOC) and other federal agencies, has adopted initiatives aligned with the Trump administration’s focus on addressing anti-American bias. Recent efforts have concentrated on staffing companies, alongside other sectors, as part of a broader strategy to prevent discriminatory practices.
In line with this objective, the Justice Department investigated Compunnel Software Group, Inc. for allegedly using job advertisements that excluded U.S. citizens and permanent residents in favor of H-1B or other temporary visa holders. The investigation revealed that recruiting emails sent by the company suggested it was exclusively seeking specific visa holders for software developer positions, effectively sidelining U.S. citizens from consideration.
Federal regulators have previously scrutinized job ads that explicitly asked for “U.S. citizens only” or “H-1B visas only,” further emphasizing the necessity of compliance with established employment discrimination laws.
Under the settlement agreement, Compunnel Software Group did not admit liability but agreed to pay $255,420 in civil penalties and an additional $58,000 in back pay to applicants allegedly overlooked for software developer roles. The company has also committed to providing training for its employees on legal compliance and revising its hiring policies to explicitly prohibit discrimination based on national origin, immigration status, citizenship, and other legally protected characteristics.
Employers are encouraged to review all job postings, including those created by third-party recruiters, to ensure alignment with federal, state, and local regulations. Furthermore, proactive training can equip recruiters and hiring managers with a clearer understanding of how to avoid unlawful discrimination based on nationality.
