Justice Department Targets Visa Preference in Job Ads

Quick Hits

• The DOJ and a New Jersey-based IT staffing firm reached a $313,420 settlement over allegations that the firm’s job postings discriminated against U.S. citizens.
• Federal law protects applicants and employees from discrimination and harassment based on race, ethnicity, citizenship status, and national origin, including U.S. nationality.
• This settlement reflects the Trump administration’s emphasis on anti-American bias and addressing discrimination against majority groups.

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, ethnicity, and national origin, including U.S. nationality. Title VII applies to all aspects of employment, including not just hiring and firing, but also compensation, promotions, benefits, disciplinary actions, and other terms and conditions of employment. Similarly, Section 274B of the Immigration and Nationality Act prohibits employers with four or more employees from discriminating in hiring, firing, or recruitment based on citizenship status or national origin.

The DOJ, along with the U.S. Equal Employment Opportunity Commission (EEOC) and other federal agencies, have aligned with the Trump administration’s priorities focusing on anti-American bias. Federal agencies have stated part of their enforcement focus is on staffing firms, among other industries and sectors.

Fitting within this strategic focus, the DOJ investigated Compunnel Software Group, Inc., for allegedly using language in job ads that excluded U.S. citizens and permanent residents and favored workers with H-1B or other temporary visas. The DOJ also claimed the company sent a recruiting email to a U.S. citizen, indicating that it wanted only certain visa holders for a software developer position, and it did not consider the U.S. citizen for that job.

Previously, federal regulators have investigated job ads requesting “U.S. citizens only” or “H-1B visas only.”

By entering into the settlement agreement, Compunnel Software Group did not admit liability. It agreed to pay $255,420 in civil penalties and $58,000 in back pay to the job applicant who was allegedly not considered for the software developer position. It also agreed to train employees on legal compliance and revise its recruitment policies to prohibit discrimination based on national origin, immigration status, citizenship, and other legally protected characteristics.

Employers may wish to review all job ads, including by third parties engaged to recruit on their behalf, to ensure compliance with all applicable federal, state, and local laws. Employers may also wish to provide proactive training to ensure clarity exists with recruiters and decision-makers on how to avoid unlawful discrimination based on national origin.

Ogletree Deakins will continue to monitor developments and will post updates on the Diversity, Equity, and Inclusion Compliance, Employment Law, and Immigration blogs as additional information becomes available.

On April 16, 2026, Ogletree Deakins will host a webinar entitled “The Heightened Risk of ‘Reverse’ or Majority Discrimination Enforcement and Claims.” Register here.

Bernhard Mueller is a shareholder in Ogletree Deakins’ Columbia office.

Nonnie L. Shivers is a shareholder in Ogletree Deakins’ Phoenix office.

This article was co-authored by Leah J. Shepherd, who is a writer in Ogletree Deakins’ Washington, D.C., office.

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