A New Jersey-based professional services firm has agreed to pay $313,420 to settle allegations that it illegally excluded US citizens and permanent residents from job opportunities by restricting positions to temporary visa holders, the US Department of Justice announced.
Compunnel Software Group Inc., which provides staffing and technology services, reached the settlement with the DOJ’s Civil Rights Division, Immigrant and Employee Rights Section (IER), resolving an investigation into what federal authorities described as a pattern of citizenship-based discrimination in its recruiting practices.
How the case began
The investigation started after a charge filed in April 2023 by a US citizen who applied for a Python Developer position advertised by Compunnel.
According to the settlement agreement, a Compunnel recruiter sent the applicant — a US citizen — an email stating that the company wanted “only” certain temporary employment-based visa holders, such as H-1B holders, for the role. The applicant was not considered for the advertised position or any other opening.IER accepted the charge and launched a broader investigation into whether Compunnel had engaged in a pattern or practice of discriminatory recruiting.
What investigators found went well beyond a single instance: at least ten of Compunnel’s recruiters had included citizenship status restrictions in more than 53 separate job advertisements, effectively barring US citizens and permanent residents from consideration for those roles without any legal justification.
Compunnel to pay a penalty of $313,420
Under the terms of the settlement, Compunnel will pay a total of $313,420, broken into two parts.
The company must pay $255,420 in civil penalties to the US Treasury, to be delivered in eight installments of approximately $31,927 each, with payments scheduled through January 2028. It must also pay $58,000 in back pay to the charging party — the US citizen who was denied consideration for the Python Developer role — representing compensation for lost wages and benefits.The settlement does not constitute an admission of liability by Compunnel, which stated it intends to continue complying with all applicable federal regulations.Beyond the financial penalties, the settlement imposes a range of obligations on Compunnel for a two-year period. The company is required to ensure that all employees, agents, or contractors involved in recruiting, referral, or hiring complete anti-discrimination training within 60 days of the agreement taking effect. New hires placed in those roles must complete the training within 10 days of starting.Compunnel must also revise its employment policies to explicitly prohibit discrimination on the basis of citizenship status or national origin, update its Equal Employment Opportunity statements, and post the IER “If You Have The Right to Work” notice in English and Spanish at all locations where employee notices are displayed, as well as on any online hiring portals.
The company says it has already taken steps to comply with several of these requirements.If any client requests that Compunnel restrict job postings by citizenship status, the company is now required to obtain written documentation proving the restriction is legally required — such as a citation to a specific law, regulation, or government contract — before imposing it.
DOJ’s broader push
The settlement is the ninth reached under the DOJ’s relaunched Protecting US Workers Initiative, which the department revived in 2025 specifically to target companies that allegedly favour employment visa holders over American workers in their recruiting practices.“It’s illegal to discourage US workers from applying for American jobs,” said Harmeet K. Dhillon, Assistant Attorney General of the Justice Department’s Civil Rights Division. “Employers cannot exclude US workers from the labor force by discriminating against them based on their citizenship status.”The DOJ said it would continue seeking the maximum penalties permitted under the Immigration and Nationality Act for violations of the law’s anti-discrimination provisions.
