In late 2021, the U.S. Departments of Justice (DOJ) and Labor (DOL) reached separate settlement agreements with Facebook (now Meta). The departments accused the company of discriminating against U.S. workers by reserving jobs for temporary visa holders. This involved Facebook’s use of the PERM processing program, which requires companies to test the U.S. labor market before they can hire foreign workers for permanent positions. This process, known as Permanent Employment Certification Processing, is a critical step in ensuring fair hiring practices.

The Allegations Against Facebook

A DOJ investigation began in 2018. It found that Facebook allegedly discouraged U.S. workers from applying for certain jobs. The company reportedly created a separate system for positions intended for visa holders. For these jobs, Facebook:

• Did not advertise them on its careers website.
• Required applicants to submit applications by mail only.
• Refused to consider U.S. workers who applied, affecting the Permanent Employment Certification Processing.

This behavior violated the Immigration and Nationality Act (INA). The DOJ found that for 99.7% of its PERM processing positions, Facebook received very few or zero U.S. applicants. This was a stark contrast to the hundreds of applicants the company typically received for jobs it advertised normally. Understanding the nuances of Permanent Employment Certification Processing was crucial in addressing these allegations.

The Settlements

To settle the lawsuits, Facebook made two separate agreements. These agreements impacted how Permanent Employment Certification Processing would be managed in the future.

DOJ Settlement

This agreement resulted in the largest civil penalty the DOJ’s Civil Rights Division had ever recovered under the INA’s anti-discrimination rule. Facebook agreed to:

• Pay a civil penalty of $4.75 million.
• Pay up to $9.5 million to victims of the alleged discrimination.
• Train its employees on the INA’s anti-discrimination rules.
• Adopt new recruitment practices to ensure U.S. workers have a fair opportunity and improve Permanent Employment Certification Processing outcomes.

DOL Settlement

The DOL’s settlement required Facebook to perform extra recruitment for U.S. workers as part of the PERM processing procedure. The department also subjected the company to ongoing audits to ensure compliance with the program’s regulations. These ongoing audits play a vital part in the Permanent Employment Certification Processing strategy.

These settlements send a strong message to employers. They show that companies can face liability for discriminatory hiring practices, even if they follow the rules of the PERM processing program.