US Bars Cloudera From Green Card Sponsorship for Two Years in $2 Million Settlement

California-based technology company Cloudera Inc has been barred from the US employment-based green card process for two years under the Cloudera green card settlement, a $2 million deal resolving allegations that it discriminated against qualified American workers.

The Cloudera green card settlement was announced jointly by the US Department of Justice and the Department of Labour. It resolves a lawsuit the Justice Department filed in April, alleging that Cloudera violated the Immigration and Nationality Act by discriminating against American workers while recruiting for seven positions under the Permanent Labour Certification, or PERM, programme, Dawn reported.

Under the settlement, Cloudera will establish a $1.4 million fund to compensate qualified US workers who tried to apply for the positions but were not given fair consideration. The company will also pay $600,000 in civil penalties to the US government.

“There are no exceptions: the Justice Department will hold accountable employers who discriminate against US workers,” Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division said.

How the alleged discrimination worked

The PERM programme is generally the first major step when a US employer seeks to sponsor a foreign worker for an employment-based green card under the EB-2 or EB-3 categories. Employers must normally demonstrate that no qualified, willing and available American workers could be found for the position, and that employing the foreign worker would not adversely affect the wages and working conditions of similarly employed US workers.

According to the allegations, Cloudera’s recruitment for seven positions did not give qualified American workers a fair opportunity to compete. Applicants were reportedly directed to an email address that did not accept messages from outside senders, blocking their applications.

The two-year debarment follows an earlier suspension of Cloudera’s PERM processing by the Labour Department. During the debarment period, the company cannot sponsor foreign workers for employment-based green cards. It will also face enhanced monitoring, revised compliance procedures and reporting requirements.

What the Cloudera green card settlement means for foreign professionals

The decision is directly relevant to Indian and Pakistani professionals seeking US permanent residency through employer sponsorship, though it does not impose a general ban on green cards for nationals of either country.

Cloudera-sponsored applications could face disruption. Employees whose green card cases depend on the company’s labour certification may face delays or need to explore lawful alternatives, depending on their individual circumstances and the stage of their cases. The debarment does not, by itself, establish that every existing green card application sponsored by Cloudera will be cancelled.

The warning has wider implications. Employers found to have discriminated against qualified American workers could face penalties and restrictions on sponsoring foreign employees.

For Pakistani tech workers weighing their options, the case is a reminder to track policy shifts closely. Many are already looking at alternatives: Canada has just rewritten its permanent residency rules with new points for work experience and job offers, and Ottawa plans to admit 1.14 million permanent residents over 2026-2028, making it a more predictable route for skilled professionals. At the same time, immigration scrutiny in the US has been tightening on other fronts as well.

Part of a wider US crackdown

The Justice Department said the Cloudera settlement was the 14th since it relaunched its Protecting US Workers Initiative in 2025, which targets employers accused of unlawfully favouring foreign workers holding temporary employment visas over qualified American workers.

The enforcement drive is widening. On October 8, the Trump administration froze some green-card filings by Microsoft, Adobe and major IT outsourcers and opened probes into nine elite universities, in a visa crackdown it said targets fraud and American job losses.

The wider immigration rules remain unchanged: the settlement does not alter employment-based visa eligibility, annual numerical limits or country-specific visa allocation rules.

Frequently asked questions

What did the US do to Cloudera?

It barred the company from the employment-based green card (PERM) process for two years and secured a $2 million settlement: a $1.4 million compensation fund for affected US workers plus $600,000 in civil penalties.

Does this ban green cards for Pakistanis?

No. The decision does not impose a general ban on green cards for Pakistani or Indian nationals. It only stops Cloudera from sponsoring new employment-based green cards for two years.

What is the PERM programme?

It is the labour certification process, usually the first major step when a US employer sponsors a foreign worker for an EB-2 or EB-3 green card. The employer must show no qualified American worker was available for the job.

Is this part of a larger crackdown?

Yes. It is the 14th settlement under the Justice Department’s relaunched Protecting US Workers Initiative, and follows an October 8 freeze on some green-card filings by Microsoft, Adobe and IT outsourcers.