The US Justice Department has reached a $313,420 settlement with a New Jersey-based technology services firm. The settlement follows findings that the company’s recruiters used job ads that favored foreign visa holders over American workers. Compunnel Software Group Inc. violated the law by posting job vacancies with unlawful citizenship restrictions, excluding US citizens and permanent residents while showing preference for candidates on temporary visas like H-1B.
Under the terms of the settlement, the company will pay $58,000 in back pay to a US citizen who was denied consideration for a role due to his citizenship status. Additionally, Compunnel will pay $255,420 in civil penalties to the US Treasury. Federal investigators discovered a pattern of discriminatory recruitment practices by the company, including specifying only certain temporary visa holders for positions while rejecting US applicants.
The agreement mandates that the company revamp its hiring practices to prevent discrimination based on citizenship status. Compunnel must conduct mandatory training for employees involved in hiring and recruitment, revise internal policies, and inform workers of their rights. The firm will also be monitored for compliance and report regularly to federal authorities over a two-year period.
The settlement is part of the Justice Department’s Protecting US Workers Initiative, aimed at addressing companies that prioritize foreign visa holders over American workers. The initiative, relaunched in 2025, has resulted in nine settlements so far. These settlements typically include civil penalties, back pay, and mandatory compliance reforms to prevent future violations.
