Cloudera settles with the US government, barred from PERM program for two years over labour discrimination allegations

US technology company Cloudera has been barred from the employment-based green card labour certification programme for two years after reaching a $2 million settlement with the US Justice Department and Department of Labor. The agreement follows allegations that the company discriminated against qualified American workers while recruiting for seven positions under the Permanent Labour Certification (PERM) programme.

As part of the settlement, Cloudera must set up a $1.4 million fund to compensate eligible US workers through back pay and pay $600,000 in civil penalties to the federal government. The company will also face closer monitoring, revised compliance procedures and additional reporting requirements. The settlement resolves the lawsuit but does not amount to a finding of liability following a full trial.

Also read: US PERM Freeze: Indian H-1B workers could lose crucial time to secure Green Cards as sponsorships stall


Why Cloudera faced action

The Justice Department filed a lawsuit against Cloudera in April 2026, alleging that the company violated the Immigration and Nationality Act by discriminating against US workers during recruitment for the seven positions.

Under PERM rules, employers generally have to show that qualified, willing and available American workers could not be found for a job before proceeding with the relevant green card sponsorship process. The rules require employers to give eligible US candidates a fair opportunity to apply.

According to the Justice Department, some qualified American workers who tried to apply for the positions were not given fair consideration. Assistant Attorney General Harmeet K. Dhillon of the Justice Department's Civil Rights Division said the settlement sent a signal that employers would be held accountable for discrimination against US workers.

The Department of Labor had already suspended Cloudera's PERM processing before the latest agreement introduced a two-year debarment from the programme.

What the ban means for Indian workers in the US

The PERM programme is an important part of the green card process for many foreign employees sponsored by their employers. In most cases, employers must obtain labour certification from the Department of Labor before filing the relevant employment-based immigrant petition. Some green card categories are exempt from this requirement.

For Indian professionals working in the US, particularly in the technology industry, the case highlights the role employers play in securing permanent residence.

Also read: US ends 540-day automatic work permit extension for immigrants: What changes now

The two-year restriction prevents Cloudera from participating in the PERM programme during the ban. However, it does not amount to a general ban on the company hiring foreign nationals under all US visa categories.

The settlement announcement does not detail how individual existing or pending green card applications connected to Cloudera will be handled.

Indian employees whose permanent residence applications depend on employer-sponsored PERM certification should check with their employer's immigration team or a qualified US immigration lawyer to understand how the restrictions may affect their cases.

The PERM restriction also should not automatically be interpreted as a cancellation of an employee's existing H-1B visa or other work authorisation. The impact will depend on the individual's immigration status and the stage of the green card process.

14th settlement under US worker protection initiative

The Justice Department said the agreement was the 14th settlement since it relaunched its Protecting US Workers Initiative in 2025. The initiative focusses on alleged violations of federal protections against citizenship-status discrimination, including cases in which employers are accused of unfairly favouring temporary visa holders over qualified American workers.

Depending on the case, enforcement action can result in financial penalties, back pay, employee training and changes to recruitment practices.

The Cloudera settlement combines compensation for eligible workers with a two-year exclusion from the PERM programme and continued compliance monitoring, adding to the US administration's scrutiny of employer-sponsored immigration practices.