Cloudera settles lawsuit with Trump admin, agrees to pay $2 mn, faces a two-year PERM ban: All you need to know
California-based data management firm Cloudera has agreed to a settlement with the US Department of Justice (DOJ) and the Department of Labor following allegations that the company discriminated against qualified US workers when it filed for Green Cards for foreign workers.
The department added that the firm has been banned from participating in the Permanent Labor Certification (PERM) programme for two years. PERM is the mandatory first step for US employers to sponsor a foreign worker for a permanent employment-based green card.
Cloudera’s PERM suspension was announced earlier this year, before President Donald Trump’s administration imposed a ban on eight tech companies, including Microsoft and Adobe.
In a release, the DOJ announced a fine of $1.4 million against Cloudera for violating the Immigration and Nationality Act (INA), saying the data management firm discriminated against US workers when recruiting and hiring for seven positions under the PERM process. The settlement also resolves a lawsuit the department filed in April this year, accusing the company of violating the INA.
The department said, "Cloudera will establish a back-pay fund of $1.4 million to compensate qualified U.S. workers who tried to apply for the jobs at issue but were not given fair consideration. Cloudera will also pay $600,000 in civil penalties to the United States."
The statement added, "As part of the resolution, Cloudera will be barred from participating in the PERM program for two years, one of the most significant sanctions available for DOL to protect the integrity of the employment-based immigration system and safeguard opportunities for US workers. The debarment follows DOL’s earlier suspension of Cloudera’s PERM processing and reflects DOL’s commitment to aggressively enforcing labor certification requirements when employers fail to provide US workers a fair opportunity to compete for jobs."
In addition to being barred for two years, the Santa Clara-based firm will also be subject to compliance obligations designed to ensure future adherence to federal labour and anti-discrimination laws. These measures include enhanced monitoring, revised PERM compliance procedures and reporting requirements intended to prevent future violations, the department said.
Harmeet K. Dhillon, Assistant Attorney General of the DOJ’s Civil Rights Division, said, "There are no exceptions," and added, "This substantial settlement, in partnership with DOL, sends a strong signal to employers that the federal government will work together to ensure employers treat U.S. workers fairly.”
According to Bloomberg Law, a Cloudera spokesperson said the company took corrective action immediately after learning that an email address used in its recruitment process was limited to internal employees. The spokesperson added, "Cloudera does not discriminate against anyone in making hiring decisions, and we remain firmly committed to fair, lawful, and open recruitment practices."
The Cloudera agreement marks the 14th settlement since the DOJ relaunched its Protecting US Workers Initiative in 2025. The initiative enforces the INA’s ban on citizenship-status discrimination, targeting employers accused of unlawfully favouring temporary visa holders over US workers.
Through these settlements, the DOJ secures civil penalties for individual violations and says it will continue seeking the maximum penalties allowed by law where appropriate. Agreements may also require back pay, extensive training for relevant employees and recruiters, and an end to hiring restrictions based on citizenship status unless legally justified.
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.
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