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Yahoo
6 days ago
- Business
- Yahoo
Tech recruiter settles DOJ claim alleging it favored H-1B holders over US workers
This story was originally published on HR Dive. To receive daily news and insights, subscribe to our free daily HR Dive newsletter. California tech recruiter Epik Solutions agreed to pay $71,916 to resolve allegations by the U.S. Department of Justice that it violated the Immigration and Nationality Act by discriminating against U.S. workers in favor of foreign H-1B visa holders, DOJ announced June 10. The charges came after investigators from DOJ's Immigration and Employee Rights section, a component of the agency's civil rights division, found that, allegedly without legal justification, Epik Solutions placed numerous job ads stating that certain positions were open only to applicants with H-1B visas, according to the settlement agreement. 'A top priority of the Justice Department's Civil Rights Division is protecting American workers from unlawful discrimination in favor of visa workers. Companies engaging in such discrimination are on notice that the days of the federal government looking the other way on American workforce protection are over,' Assistant Attorney General for Civil Rights Harmeet K. Dhillon stated in the announcement. The settlement highlights the broad scope of the Trump administration's efforts to crack down on illegal immigration, particularly as it relates to alleged anti-American bias in U.S. workplaces. This can get complicated for employers because it requires them to be on top of several – sometimes intersecting — laws and regulations, which are often enforced by different federal agencies. For instance, in 1990, an amendment to the INA created the H-1B classification for foreign workers to be temporarily hired in the U.S. for specialty occupations, according to a U.S. Department of Labor fact sheet. The intent was to help employers who couldn't obtain needed business skills and abilities from the U.S. workforce, the fact sheet explains. However, to protect both U.S. employees from being adversely affected by the employment of H-1B workers and the H-1B workers themselves, employers must attest to DOL that they will meet certain standards when employing H-1B workers, including that they will adhere to specific pay requirements. The pay issue was at the crux of a December 2024 report from university researchers, estimating, based on DOL 2005 salary data publicly released in 2014, that the accounting firm Deloitte paid newly hired H-1B accountants 10% less than U.S. workers in similar roles. Deloitte countered that the researchers' data was incomplete and hadn't been validated. It said it complies with all immigration regulations, provides competitive wages and uses the visa program to complement its workforce with highly skilled professionals, many of who are graduates of U.S. colleges, to meet its business needs. Issues related to hiring H-1B workers can also arise under Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination on the basis of national origin, Ogletree attorneys noted in a March analysis. The attorneys pointed to a February press release from EEOC Chair (then Acting Chair) Andrea Lucas advising employers the agency would prioritize 'protecting American workers from anti-American national origin discrimination.' To achieve this priority, Lucas said the EEOC planned to increase 'enforcement of employment anti-discrimination laws against employers [and staffing agencies] that illegally prefer non-American workers.' The Ogletree post also predicted the DOJ will step up its enforcement of the INA's employment-related provisions, which prohibit discrimination on the basis of citizenship status, including discrimination against U.S. citizens, the attorney said. According to the settlement in the Epik Solutions case, DOJ said it has reasonable cause to believe the company — through its job ads — engaged in citizenship discrimination against U.S. workers. Under the agreement, Epik Solutions must provide training to any employee, recruiter, contractor or agent involved in its recruiting, referral, hiring or employment eligibility process on how to avoid discrimination prohibited under the INA. Epik Solutions also may not agree to a client's request or preference to exclude protected workers from employment opportunities unless it obtains written proof from the client demonstrating the legality of the request, the settlement states. Recommended Reading California acts on noncompetes, caste discrimination
American Military News
13-06-2025
- Business
- American Military News
H-1B visa: East Bay company agrees to fine over alleged discrimination against US workers
Pleasant Hill, California, technology and staffing company Epik Solutions — a federal contractor certified as a 'small disadvantaged business' — has agreed to pay a $72,000 fine after allegedly getting caught advertising jobs open only to foreign workers on the controversial H-1B visa. 'A top priority of the Justice Department's Civil Rights Division is protecting American workers from unlawful discrimination in favor of foreign visa workers,' said the department's civil rights chief, former San Francisco lawyer Harmeet Dhillon, who was nominated for her position by President Donald Trump. Epik said it cooperated with the department's investigation into the matter, and does not acknowledge any wrongdoing, according to the settlement signed Tuesday. The company 'stated in numerous job advertisements that certain employment positions for which (it) was recruiting were restricted based on citizenship status, including restricting hiring to only applicants with H-1B visas, without legal justification,' the agreement said. The H-1B has become a flashpoint in America's immigration debates. Silicon Valley technology giants rely heavily on the visa to secure top global talent. But critics argue that the H-1B is used to undercut wages and in some cases, replace U.S. workers with H-1B holders. Major tech firms also employ many lower-skill H-1B workers indirectly through staffing companies. Last year, Google received approval for some 5,300 new and continuing H-1Bs, according to federal government data. Meta received nearly 5,000 approvals, Apple close to 4,000, Intel about 2,500 and Oracle more than 2,000. The visa was at the center of a furor in January just before Trump took office, after high-profile conspiracy theorist Laura Loomer attacked immigration to the U.S. by Indians, who hold the bulk of H-1B visas. Trump in the past criticized the H-1B and sought to reform it, and his first administration dramatically boosted denial rates. But in January he, along with his tech advisor, Bay Area venture capitalist David Sacks, came out in support of the visa, joined by Elon Musk, the billionaire CEO of Tesla, which received more than 1,700 new and continuing H-1B approvals last year. Federal records show Epik received a $500,000 contract in 2021 and a $1.2 million contract in 2022, both for managing government electronic records. The certification as a small disadvantaged business under federal contracting rules indicates Epik represented itself as believing in good faith that it is owned and controlled by 'one or more socially and economically disadvantaged individuals,' according to the U.S. Code of Federal Regulations. Epik, and its CEO Ashish Kataria, did not immediately respond to questions about the basis for the company's certification as disadvantaged. The Small Business Administration identifies many groups of people with foreign origins as socially disadvantaged. The agency defines economically disadvantaged people as 'socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged.' The agreement with the Justice Department said Epik 'shall not discriminate against applicants or employees based on citizenship status or national origin.' The company also agreed not to impose illegal discriminatory restrictions in job postings, recruitment activities, or consideration of job applicants for hiring or referral. Also, Epik employees involved in hiring and recruiting must take anti-discrimination training. ___ © #YR@ MediaNews Group, Inc. Distributed by Tribune Content Agency, LLC.
Time of India
12-06-2025
- Business
- Time of India
US tech company penalised by Department of Justice for favouring H‑1B visa workers over American candidates
The US Justice Department has penalized Epik Solutions, a California-based tech recruiter, for discriminating against American workers in favor of H-1B visa holders. This settlement, the first under the revived "Protecting US Workers Initiative," addresses violations of the Immigration and Nationality Act. Epik Solutions must pay a civil penalty, revise hiring policies, and cease discriminatory advertising practices. Tired of too many ads? Remove Ads Pay $71,916 as civil penalty to the US government Revise its hiring and recruitment policies Undergo compliance training Cease the practice of placing ads that exclude US workers Tired of too many ads? Remove Ads The US Justice Department has penalised California-based tech recruiter Epik Solutions for discriminating against American workers in favour of foreign H‑1B visa holders, as per a report by the Times of India. The action marks the first settlement under the revived 'Protecting US Workers Initiative.'An investigation found that Epik Solutions violated the Immigration and Nationality Act (INA) by posting job advertisements that excluded US citizens and gave preference to H‑1B visa the terms of the settlement, the company has agreed to:The Department emphasised that this move signals stricter enforcement against discriminatory hiring.'Protecting American workers from unlawful discrimination in favour of foreign visa workers is a top priority of the Justice Department's Civil Rights Division,' said assistant attorney general for civil rights, Harmeet K. Dhillon to TOI. She further stated, 'The days of the federal government looking the other way on American workforce protection are over.'The 'Protecting US Workers Initiative' was relaunched to ensure that US citizens are not unfairly excluded from employment opportunities . Epik Solutions' settlement is expected to serve as a warning to other firms employing similar practices.(With inputs from TOI)
Time of India
11-06-2025
- Business
- Time of India
US Justice Department penalises company for favouring H-1B workers
FILE - The Department of Justice logo is shown on a podium during a news conference, Sept. 30, 2010, in Philadelphia. (AP Photo/Matt Slocum, File) The US Justice Department recently announced a settlement with Epik Solutions , a tech recruiting company based in California, for violating the Immigration and Nationality Act (INA). Epik Solutions was found to have favoured foreign H-1B visa holders over US workers in its recruitment practices. This settlement is significant as it's the first since the department relaunched its "Protecting US Workers Initiative," which aims to crack down on companies that illegally discriminate against American workers in favour of foreign visa workers. As part of the agreement, Epik Solutions will: * Pay $71,916 in civil penalties to the US government. * Undergo training. * Revise its employment policies. * Stop placing job advertisements that unlawfully exclude U.S. workers. "Protecting American workers from unlawful discrimination in favor of foreign visa workers is a top priority of the Justice Department's Civil Rights Division," said assistant attorney general for civil rights, Harmeet K. Dhillon. She added that companies engaging in such discrimination are now on notice that "the days of the federal government looking the other way on American workforce protection are over."
