Immigration enforcement agencies have reached a settlement with Cloudera Inc. after alleging that the California-based data management company failed to give qualified U.S. workers a fair opportunity to compete for jobs recruited through the federal Permanent Labor Certification program.
The agreement announced by the U.S. Department of Justice and U.S. Department of Labor on October 16, 2026, bars Cloudera from participating in the PERM program for 24 months in the immigration case.
Cloudera must also create a $1.4 million back-pay fund for eligible workers and pay $600,000 in civil penalties to the United States.
The resolution closes a Justice Department lawsuit filed in April and imposes additional recruitment, monitoring, training and reporting requirements on Cloudera under the immigration settlement.
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What the Cloudera immigration settlement requires
Under the settlement, Cloudera must withdraw outstanding PERM applications that relied on the email address identified in the government’s investigation, including affected immigration-related applications.
The company must then self-debar from the PERM program for 24 months by refraining from filing new ETA Form 9089 applications and by not placing advertisements connected to PERM recruitment during that period, which limits its immigration sponsorship activity.
The two-year period begins on the date Cloudera withdraws its most recent affected PERM application, according to the settlement agreement.
The agreement also establishes a three-year compliance term covering Cloudera’s obligations to the Justice Department’s Immigrant and Employee Rights Section and the Labor Department’s Office of Foreign Labor Certification, including immigration compliance requirements.
When Cloudera resumes PERM recruitment, it must recruit U.S. workers for PERM-related positions in the same way it recruits for comparable non-PERM jobs and follow the applicable immigration recruitment rules.
The company must use an independent third-party auditor to review its recruitment practices and submit immigration compliance reports to federal officials.
What the agencies alleged about PERM recruitment
The Justice Department alleged that Cloudera used a separate immigration-related recruitment process for jobs connected to permanent labor certification between at least March 31, 2024, and January 28, 2025.
According to the settlement agreement, Cloudera did not post the immigration-related positions on its public career website in the same manner as other jobs.
The company instead listed a separate email account for U.S. workers who wanted to apply.
Federal investigators determined that the account could not receive messages from external email accounts, meaning workers who followed the instructions could not successfully submit their applications.
The settlement agreement says at least one U.S. worker was affected, while the Justice Department’s lawsuit alleged a broader pattern or practice involving recruitment for seven technology positions.
The allegations were resolved through a settlement rather than a trial in the immigration case.
Cloudera maintains that it complied with the Immigration and Nationality Act and denies that it acted with discriminatory intent.
How the back-pay fund will work
The $1.4 million fund is intended for qualified workers who attempted to apply for the affected immigration-related positions but were not fairly considered.
Potential claimants must contact the Justice Department’s Immigrant and Employee Rights Section within 180 days after the settlement’s effective date.
Workers may contact the agency through [email protected] and must provide enough evidence to show that they were victims of the discrimination covered by the immigration case.
Relevant evidence may include communications showing that a worker attempted to apply, including messages sent to the email account used in the recruitment process.
The agency will determine whether a person is a protected individual under federal law, whether the person attempted to apply for a PERM-related job and whether the person had the required work experience.
Applicants may also need to consent to a reasonable background check because Cloudera conducts background checks for employees before hiring.
Back pay will generally be calculated by comparing the wages and other compensation the person would have earned with the income the person actually received after the missed opportunity.
The calculation may include benefits, bonuses, 401(k) contributions, stock options and reasonable interest, with mitigation amounts deducted.
Workers should keep copies of job postings, emails, application materials and other records that may show an attempt to apply during the relevant period.
New recruitment rules for Cloudera
Cloudera must prepare a written policy governing PERM immigration recruitment and submit it to the Justice Department for review.
The policy must require the company to assign requisition numbers to immigration-related positions and post those positions on its internal and external career websites alongside non-PERM jobs.
Cloudera must accept electronic applications through its career websites and may not require applicants to apply by email for PERM-related positions.
Where available, the online application system must also permit applications through state workforce agency websites.
Applicants for PERM-related positions who apply through Cloudera’s websites must be entered into the company’s applicant tracking system in the same manner as applicants for other jobs.
The company must conduct a good-faith review of applicants’ qualifications and may not discriminate based on citizenship status when carrying out the PERM immigration process.
Cloudera must provide anti-discrimination training to U.S.-based talent acquisition and human resources employees, recruiters, contractors and agents.
The company must also submit semiannual reports listing PERM-related positions, applicant totals, interviews and the number of people determined to be qualified.
Why the PERM program matters
The PERM program is the Labor Department immigration process employers generally use to seek labor certification before sponsoring a foreign worker for employment-based permanent residence.
Employers must demonstrate that they conducted required recruitment and that qualified, willing and available U.S. workers were not displaced by the sponsorship request.
The process is not a general permission to exclude U.S. workers from consideration.
Federal rules require employers to provide U.S. workers with a genuine opportunity to apply and to evaluate applicants under the applicable immigration recruitment standards.
The Cloudera case shows that problems involving application access, advertising methods and applicant tracking can create both immigration-program consequences and civil-rights exposure.
The Labor Department had already suspended processing of Cloudera’s PERM applications for 180 days in May 2026 while the Justice Department pursued its case.
The final agreement replaces that earlier suspension with a longer 24-month self-debarment and adds independent auditing and compliance controls.
What affected workers and employers should do
Workers who believe they tried to apply for one of the affected positions should gather documentation before contacting the Justice Department.
Useful records may include copies of advertisements, email delivery notices, application drafts, communications with recruiters and evidence of relevant qualifications.
Potential claimants should contact the agency directly rather than assume that a general employment complaint automatically qualifies for payment from the Cloudera fund.
Employers using the PERM program should review whether PERM-related jobs are advertised and processed through the same systems used for comparable positions.
Recruiters and human resources teams should confirm that application channels function properly, that submitted materials are retained and that workers are not subjected to extra hurdles because a position is connected to immigration sponsorship.
Workers seeking informal assistance may contact the Justice Department’s Immigrant and Employee Rights Section hotline at 1-800-255-7688.
Employers may use the agency’s employer hotline at 1-800-255-8155, while the TTY number is 1-800-237-2515.
The settlement does not change the general eligibility rules for employment-based immigration, but it reinforces the requirement that PERM recruitment be conducted fairly and in compliance with federal law.
Frequently Asked Questions
What penalty did Cloudera receive in the PERM settlement?
Cloudera must stop participating in the PERM program for 24 months, create a $1.4 million back-pay fund and pay $600,000 in civil penalties.
Who may qualify for money from the Cloudera back-pay fund?
A worker may qualify if the Justice Department determines that the person was a protected individual who attempted to apply for an affected PERM-related position and was not fairly considered.
How can a potential claimant contact the government?
Potential claimants may contact the Justice Department’s Immigrant and Employee Rights Section at [email protected] within 180 days after the settlement’s effective date.
What is the PERM program?
PERM is the Labor Department’s permanent labor certification process, which requires an employer to test the U.S. labor market before sponsoring a foreign worker for employment-based permanent residence.
Fact-Checked: Verified against the DOJ October 16, 2026 announcement, the signed settlement agreement, the DOJ case summary and the Labor Department’s May 12, 2026 enforcement notice.
Disclaimer: This article is for general information and is not legal advice. Workers with potential claims should contact the Justice Department or an immigration attorney.
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