DOJ Sues Cloudera for Alleged Discriminatory PERM Practices

The DOJ accused Cloudera of excluding U.S. workers by manipulating PERM job applications.

The U.S. Department of Justice filed a lawsuit against Cloudera Inc. on April 28, 2026, alleging the Santa Clara-based technology firm illegally discriminated against U.S. workers seeking high-paying technology roles. The DOJ claims Cloudera intentionally circumvented U.S. labor regulations by requiring American applicants to send their resumes to a non-functional email address, effectively excluding them from the hiring process.

At the heart of the complaint is the Permanent Labor Certification Program (PERM), which mandates that employers demonstrate genuine recruitment efforts for U.S. workers before turning to candidates requiring temporary work visas. The DOJ asserts that Cloudera failed this test by manipulating the application process, in violation of the Immigration and Nationality Act.

• "Employers cannot use the PERM sponsorship process as a backdoor for discriminating against U.S. workers," said Harmeet K. Dhillon, Assistant Attorney General of the Justice Department’s Civil Rights Division.

This action forms part of the DOJ's Protecting U.S. Workers Initiative, relaunched in 2025, which focuses on rooting out unfair hiring practices benefiting temporary visa holders over U.S. candidates—especially in the tech sector. In the past year, the initiative has secured ten settlements with companies on similar grounds.

For in-house legal teams and outside counsel advising tech clients, the Cloudera suit signals the increased regulatory risks facing companies leveraging the PERM program. Monitoring compliance and auditing recruitment policies should now be a top priority.