New Jersey Firm Settles DOJ Discrimination Case for Over $313,000
A professional services company based in New Jersey has agreed to pay a substantial settlement of $313,420 to resolve allegations that it systematically excluded United States citizens and lawful permanent residents from employment opportunities. The U.S. Department of Justice announced that Compunnel Software Group Inc., which offers staffing and technology solutions, reached this agreement with the Civil Rights Division's Immigrant and Employee Rights Section (IER).
Investigation Uncovers Widespread Discriminatory Practices
The federal investigation was initiated following a formal charge filed in April 2023 by a U.S. citizen who applied for a Python Developer position advertised by Compunnel. According to the settlement documents, a recruiter from the company explicitly informed the applicant via email that the role was reserved "only" for individuals holding specific temporary employment-based visas, such as the H-1B visa. Consequently, the applicant was not considered for that position or any other vacancies within the organization.
Upon accepting the charge, the IER expanded its inquiry into whether Compunnel had engaged in a broader pattern of citizenship-based discrimination. The findings revealed a significant and systematic issue: at least ten different recruiters employed by Compunnel had incorporated citizenship status restrictions into more than fifty-three separate job advertisements. These restrictions effectively barred U.S. citizens and permanent residents from applying for these roles without any legitimate legal justification, constituting a clear violation of federal anti-discrimination laws.
Financial Penalties and Corrective Measures Imposed
Under the terms of the settlement agreement, Compunnel is required to pay a total of $313,420, which is divided into two distinct components. The company must remit $255,420 in civil penalties to the U.S. Treasury, to be paid in eight installments of approximately $31,927 each, with the final payment scheduled for January 2028. Additionally, Compunnel must provide $58,000 in back pay to the charging party—the U.S. citizen who was denied consideration for the Python Developer role—as compensation for lost wages and benefits.
It is important to note that the settlement does not constitute an admission of liability by Compunnel, and the company has stated its intention to continue adhering to all applicable federal regulations. Beyond the financial repercussions, the settlement mandates a series of compliance obligations for Compunnel over a two-year period. The company is required to ensure that all employees, agents, or contractors involved in recruitment, referral, or hiring processes complete comprehensive anti-discrimination training within sixty days of the agreement's effective date. New hires in these roles must complete the training within ten days of their start date.
Compunnel must also revise its employment policies to explicitly prohibit discrimination based on citizenship status or national origin, update its Equal Employment Opportunity statements, and prominently display the IER "If You Have The Right to Work" notice in both English and Spanish at all locations where employee notices are posted, as well as on any online hiring portals. The company has indicated that it has already begun implementing several of these requirements. Furthermore, if any client requests that Compunnel restrict job postings by citizenship status, the company is now obligated to obtain written documentation proving that such a restriction is legally mandated—such as a citation to a specific law, regulation, or government contract—before enforcing it.
DOJ's Broader Initiative to Protect American Workers
This settlement represents the ninth resolution achieved under the Department of Justice's relaunched Protecting U.S. Workers Initiative, which was revived in 2025 specifically to address companies that allegedly favor employment visa holders over American workers in their recruitment practices. Harmeet K. Dhillon, Assistant Attorney General of the Justice Department's Civil Rights Division, emphasized the illegality of such practices, stating, "It's illegal to discourage U.S. workers from applying for American jobs. Employers cannot exclude U.S. workers from the labor force by discriminating against them based on their citizenship status."
The Department of Justice has affirmed its commitment to pursuing the maximum penalties allowed under the Immigration and Nationality Act for violations of its anti-discrimination provisions, signaling a continued focus on enforcing labor protections for American workers.
