DoJ Sues Cloudera for Allegedly Discriminating Against US Workers in PERM Hiring Process

The US Department of Justice has taken legal action against Cloudera, a prominent data and AI platform provider, accusing the company of systematically discriminating against American workers in favor of foreign visa holders through manipulation of the permanent labor certification process.

The lawsuit, filed with the Executive Office for Immigration Review, alleges multiple violations of the Immigration and Nationality Act by Cloudera for "intentionally discriminating against U.S. workers in favor of hiring workers with temporary visas." The complaint centers on the company's alleged creation of a parallel hiring process that undermined the requirements of the Department of Labor's PERM (Permanent Labor Certification) program.

Understanding the PERM Program

The PERM program is a critical component of US immigration law that allows employers to sponsor foreign workers holding temporary visas (such as H-1B) for permanent residency when they can demonstrate that no minimally qualified and available US worker can fill the role. This process requires employers to complete a thorough recruitment process and document lawful job-related reasons for rejecting any US applicants before filing a PERM application.

For PERM compliance, employers must:

• Post the position with a State Workforce Agency for at least 30 days
• Provide internal notice of the job opening
• Advertise the position twice in a newspaper of general circulation
• For professional roles, use at least three additional recruitment methods such as job fairs, private employment firms, referral programs, or college placement offices

Only after completing these steps can an employer proceed with a PERM filing tied to a specific worker. Approval of that labor certification then allows the employer to move forward with immigration filings that can eventually support permanent residency.

Cloudera's Alleged Violations

According to the DoJ, Cloudera deliberately circumvented these requirements by creating a separate hiring process for certain positions earmarked for foreign workers with temporary visas. Unlike its normal hiring process where candidates apply through the company's website, Cloudera allegedly skipped standard advertising for at least seven positions and instructed US candidates to submit applications via a non-functional email address.

"Cloudera set up a non-functional email address and instructed candidates to individually email resumes for each job they sought," the complaint alleges. "Thus, when an external candidate applied for a job using the faulty email address the company advertised, Cloudera did not receive any record to track that person's application."

This practice, which allegedly occurred between 2024 and 2025, prevented Cloudera from properly documenting US applicants, thereby undermining the foundational requirement of the PERM program that employers demonstrate they made a good-faith effort to hire qualified American workers.

"Having created a separate hiring process with an email address where U.S. workers could not succeed, Cloudera then repeatedly attested to the U.S. Department of Labor that it was unable to find any qualified U.S. workers," the DoJ stated in its announcement.

Legal Consequences

The DoJ has identified three specific alleged violations under the Immigration and Nationality Act:

1. Deterring US workers from applying
2. Failing to consider US workers
3. Failing to hire US workers for the positions in question

If found liable, Cloudera could face significant penalties including:

• Unspecified damages covering lost wages (with interest) for each discriminated against individual
• An appropriate civil penalty
• An injunction prohibiting future discriminatory practices

Context and Precedent

This case follows a pattern of increased scrutiny by the DoJ of employer compliance with immigration-related anti-discrimination laws. In 2023, Apple settled similar allegations with the DoJ, agreeing to pay $25 million for discriminating against US workers in favor of PERM applicants. That settlement amounted to approximately 0.1% of Apple's Q3 net income that year.

Cloudera, which was taken private in 2021, had approximately 3,200 employees as of August 2025, according to Pitchbook data. While potential penalties in this case remain unspecified, they could be substantial given the alleged duration and systematic nature of the violations.

The DoJ's action underscores the government's commitment to ensuring that the PERM program functions as intended—rather than serving as a mechanism for employers to bypass domestic hiring requirements. Employers navigating the complex immigration landscape must maintain rigorous compliance protocols to avoid similar legal challenges.