DOJ Settlement Highlights Continued Focus on Anti-American Bias in Job Ads

On April 7, 2026, the Department of Justice’s (DOJ) Civil Rights Division announced a settlement with Compunnel Software Group, Inc., addressing allegations that the company was in violation of the Immigration and Nationality Act (INA) when they posted job advertisements including citizenship limitations not allowed by law. Section 1324b of the INA prohibits discrimination in recruiting and hiring based on citizenship status, and the DOJ alleges that the job advertisements explicitly stated the positions were restricted to certain temporary-based visa holders only, thereby excluding protected U.S. citizens.

The settlement stems from a charge by an applicant who alleged he was excluded from consideration for a software developer position due to his status as a U.S. citizen. According to the settlement agreement, over 50 job advertisements were posted with language excluding U.S citizens and Permanent Residents from applying and stating a preference for H-1B or other temporary visa holders. Beyond the job postings, the settlement agreement states that the applicant who brought the charge received an email directly from the company indicating the advertised jobs were for specific temporary-based visa holders only.

Under the settlement agreement, Compunnel Software Group, Inc. agreed to pay $58,000 in back pay to the individual who brought the charge, as well as civil penalties of $255,420 to the U.S. Treasury. The company also agrees to not discriminate against applicants or employees based on citizenship status, absent legal justification, and to ensure their job postings, recruitment activities, and consideration of applicants for referral or hiring does include unlawful discriminatory restrictions.

This is the second recent DOJ settlement that focuses on anti-American bias in job postings, indicating that this is a continued focus of the agency. This aligns with the Trump Administration’s Project Firewall that is an inter-agency initiative designed to protect the rights, wages and job opportunities of American workers.

Employers should take notice of these recent settlements and use this as an opportunity to audit their employment practices. Job postings, whether created by the company or by AI or third-party vendors, need to be reviewed to ensure they do not exclude U.S. citizens without appropriate legal justification. However, it is not enough to stop at job postings, as Project Firewall is designed to prevent other practices such as disparate promotion pathways or harassment or retaliation tied to national origin. Employers should audit their overall recruiting and screening practices, as well as their promotion and pay practices to ensure compliance with laws protecting U.S. citizens.