On April 28, 2026, the Justice Department (DOJ), through its Civil Rights Division, filed a lawsuit against Cloudera, Inc., alleging discrimination against U.S. citizens in connection with its PERM recruitment process and its labor market test.
The complaint centered on a technical issue with the email address to which candidates were directed to submit their applications. According to the complaint, Cloudera’s PERM recruitment ads directed applicants to a dedicated email address specifically created for PERM recruitment. The complaint suggests that the email address was not configured to accept external submissions. While this could have been an oversight, it may have effectively prevented U.S. workers from applying.
The DOJ accuses Cloudera of deliberately creating a separate and unworkable process for PERM recruitment, with the intention of deterring or excluding U.S. workers.
On May 12, The U.S. Department of Labor (DOL) issued a press release announcing that following the DOJ allegations of unlawful discrimination against U.S. workers, the Department’s Employment and Training Administration’s Office of Foreign Labor Certification has suspended processing of all permanent labor certification applications filed by, or on behalf of, Cloudera for 180 days. Depending upon the results of the DOJ investigation, the suspension may be extended.
The DOL explained that this action “follows evidence obtained by the DOJ’s Civil Rights Division alleging Cloudera engineered a non-functional recruitment process that prevented qualified American workers from applying for high-paying technology positions while certifying to ETA that no qualified U.S. workers were available.”
Although the alleged issue here is narrow and potentially avoidable, it signals a broader campaign under the DOJ’s Protecting U.S. Workers Initiative to target and investigate discrimination against U.S. workers in favor of foreign nationals. The DOJ claims to have obtained 10 settlements in the last year for similar issues.
The DOL similarly advised that it while it has already suspended all Cloudera PERM applications, it will proactively enforce its suspension authority against those under investigation by the DOJ or other government entity for possible “fraud or misrepresentation in relation to the permanent labor certification program.”
This lawsuit echoes a familiar initiative from the first Trump Administration, when the DOJ brought high-profile cases against Apple and Facebook, among others, in 2019 and 2020. The DOJ alleged that these companies’ PERM recruitment practices deviated from their standard hiring practices in ways that disadvantaged qualified U.S. workers. These cases have typically resulted in costly settlements.
Takeaway for Employers Engaged in PERM Recruitment
Both the DOJ’s Immigrant and Employment Rights section (IER) and the DOL are ramping up investigations into how employers conduct their PERM recruitment. Employers should take proactive steps to minimize risk.
As an immediate measure, employers should ensure that all contact information listed in PERM advertisements, whether email or physical address, is accurate, functional, and closely monitored by HR personnel.
Equally important, the process for receiving and reviewing applications during PERM recruitment should mirror the employer’s standard non-PERM hiring practices. This includes using the same application channels and processes. The IER emphasized that Cloudera not only utilized an inoperative email, but unlike all other recruitment, the postings did not appear on Cloudera’s website. The IER is particularly focused on employers that use materially different procedures for PERM recruitment.
Employers should also consider preparing in advance for an IER investigation. Understanding what to expect and how to respond can significantly reduce disruption and legal exposure.
Employers should work with immigration counsel on a risk assessment of their current PERM practices for guidance on any necessary adjustments. Klasko Immigration’s Worksite Compliance Team is not only adept at PERM recruitment compliance, but can also assist with preparing for investigation notices, responding to DOJ and DOL inquiries, negotiating resolutions with the government, and defending against complaints and enforcement actions like those initiated against Cloudera this week.
Employers are encouraged to contact a Klasko attorney to discuss their PERM recruitment process or request a consultation here.
The material contained in this alert does not constitute direct legal advice and is for informational purposes only. An attorney-client relationship is not presumed or intended by receipt or review of this presentation. The information provided should never replace informed counsel when specific immigration-related guidance is needed.
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