Story · August 8, 2026

DOJ resolves cases over citizenship bias in hiring and PERM recruitment

Job discrimination Confidence 5/5
★★★☆☆Fuckup rating 3/5
Major mess Ranked from 1 to 5 stars based on the scale of the screwup and fallout.
Correction: DOJ announced the Compunnel settlement on April 7, 2026; a separate July 6, 2026 letter of resolution involved a different company in a separate matter.
DOJ resolves cases over citizenship bias in hiring and PERM recruitment

The Justice Department’s Civil Rights Division has resolved a series of immigration-employment cases this year, including one settlement announced April 7 and a separate July 6 letter of resolution. Together, the matters show the department still policing hiring practices that can unlawfully shut out U.S. workers. ([justice.gov](https://www.justice.gov/opa/pr/civil-rights-division-obtains-settlement-company-discouraged-us-workers-applying-jobs))

In the April case, DOJ said Compunnel Software Group, Inc. agreed to pay $313,420 to resolve allegations that recruiters posted job ads with citizenship-status restrictions that were not legally authorized. The department said the ads favored applicants with H-1B or other temporary visas and excluded U.S. citizens and permanent residents from some jobs. Compunnel also agreed to pay $58,000 in back pay to a U.S. citizen who was not considered for a Python developer role, along with civil penalties and compliance steps. ([justice.gov](https://www.justice.gov/opa/pr/civil-rights-division-obtains-settlement-company-discouraged-us-workers-applying-jobs))

On July 6, the department said it issued a letter of resolution to an online design company after a U.S. citizen alleged he was not considered for a position tied to permanent labor certification, or PERM, recruitment. DOJ said the company voluntarily committed to updating its PERM practices, including posting PERM-related jobs on its external career site, accepting electronic applications, and tracking and reviewing applications. ([justice.gov](https://www.justice.gov/crt/ier-letters-resolutions-fy-2026))

The two matters are not the same case and do not describe the same company. They do, however, fall under the same federal rule: employers cannot impose citizenship-status limits without a lawful basis, and they cannot use recruitment rules that block U.S. workers from a fair shot at the job. ([justice.gov](https://www.justice.gov/opa/pr/civil-rights-division-obtains-settlement-company-discouraged-us-workers-applying-jobs))

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