Apple agrees to $25 million settlement with U.S. DOJ for illegally discriminating against U.S. citizens in hiring and recruitment

The U.S. Justice Department announced today that it has secured a landmark agreement with Apple to resolve allegations that Apple illegally discriminated in hiring and recruitment against U.S. citizens and certain non-U.S. citizens whose permission to live in and work in the United States does not expire.
Under the agreement, Apple is required to pay up to $25 million in backpay and civil penalties, the largest award that the department has recovered under the anti-discrimination provision of the Immigration and Nationality act (INA).
“Creating unlawful barriers that make it harder for someone to seek a job because of their citizenship status will not be tolerated,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division in a statement. “This resolution reflects the Civil Rights Division’s commitment to ending illegal discriminatory employment practices.”
The settlement agreement resolves the department’s determination that Apple violated the INA’s anti-discrimination requirements during Apple’s recruitment for positions falling under the permanent labor certification program (PERM). The PERM program is administered by the U.S. Department of Labor and the U.S. Department of Homeland Security. It allows employers to sponsor workers for lawful permanent resident status in the United States after completing recruitment and meeting other program requirements. Any U.S. employer that utilizes the PERM program cannot illegally discriminate in hiring or recruitment based on citizenship or immigration status.
The department’s investigation, which started in February 2019, found that Apple engaged in a pattern or practice of citizenship status discrimination in recruitment for positions it hired through PERM, and that the company’s unlawful discrimination prejudiced U.S. citizens, U.S. nationals, lawful permanent residents, and those granted asylum or refugee status. These less effective recruitment practices deterred protected workers from applying to positions that Apple preferred to fill instead with PERM beneficiaries.
Specifically, the department’s investigation found that Apple did not advertise positions Apple sought to fill through the PERM program on its external job website, even though its standard practice was to post other job positions on this website. It also required all PERM position applicants to mail paper applications, even though the company permitted electronic applications for other positions. In some instances, Apple did not consider certain applications for PERM positions from Apple employees if those applications were submitted electronically, as opposed to paper applications submitted through the mail. These less effective recruitment procedures nearly always resulted in few or no applications to PERM positions from applicants whose permission to work does not expire.
Pursuant to the $25 million agreement, Apple is required to pay $6.75 million in civil penalties and establish an $18.25 million back pay fund for eligible discrimination victims. The agreement also requires Apple to ensure that its recruitment for PERM positions more closely matches its standard recruitment practices.
Specifically, Apple will be required to conduct more expansive recruitment for all PERM positions, including posting PERM positions on its external job website, accepting electronic applications, and enabling applicants to PERM positions to be searchable in its applicant tracking system. Apple has implemented some of these measures after the department opened its investigation. Additionally, Apple will train its employees on the INA’s anti-discrimination requirements and be subject to departmental monitoring for the three-year period of the agreement.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the INA’s anti-discrimination provision. This law prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation. Learn more about IER’s work and how to get assistance through this brief video or watch an on-demand presentation. Find more information on how employers can avoid discrimination when hiring and recruiting on IER’s website.
MacDailyNews Note: As we noted back in 2017, The following editorial was published by The New York Times‘ Editorial Board, June 16, 2016, five months prior to the 2016 U.S. Presidential election:
Visa Abuses Harm American Workers
There is no doubt that H-1B visas — temporary work permits for specially talented foreign professionals — are instead being used by American employers to replace American workers with cheaper foreign labor. Abbott Laboratories, the health care conglomerate based in Illinois, recently became the latest large American company to use the visas in this way, following the lead of other employers, including Southern California Edison, Northeast Utilities (now Eversource Energy), Disney, Toys “R” Us and New York Life.
The visas are supposed to be used only to hire college-educated foreigners in “specialty occupations” requiring “highly specialized knowledge,” and only when such hiring will not depress prevailing wages. But in many cases, laid-off American workers have been required to train their lower-paid replacements.
Lawmakers from both parties have denounced the visa abuse, but it is increasingly widespread, mainly because of loopholes in the law. For example, in most instances, companies that hire H-1B workers are not required to recruit Americans before hiring from overseas. Similarly, companies are able to skirt the rules for using H-1B workers by outsourcing the actual hiring of those workers to Tata, Infosys and other temporary staffing firms, mostly based in India.
Criticism of the visa process has been muted, and reform has moved slowly, partly because laid-off American workers — mostly tech employees replaced by Indian guest workers — have not loudly protested. Their reticence does not mean acceptance or even resignation. As explained in The Times on Sunday by Julia Preston, most of the displaced workers had to sign agreements prohibiting them from criticizing their former employers as a condition of receiving severance pay. The gag orders have largely silenced the laid-off employees, while allowing the employers to publicly defend their actions as legal, which is technically accurate, given the loopholes in the law.
The conversation, however, is changing. Fourteen former tech workers at Abbott, including one who forfeited a chunk of severance pay rather than sign a so-called nondisparagement agreement, have filed federal claims with the Equal Employment Opportunity Commission saying they were discriminated against because of their ages and American citizenship. Tech workers from Disney have filed federal lawsuits accusing the company and two global outsourcing firms of colluding to supplant Americans with H-1B workers. Former employees of Eversource Energy have also begun to challenge their severance-related gag orders by publicly discussing their dismissals and replacement by foreign workers on H-1B and other visas.
Congressional leaders of both parties have questioned the nondisparagement agreements. Bipartisan legislation in the Senate would revise visa laws to allow former employees to protest their layoffs. Beyond that, what Congress really needs to do is close the loopholes that allow H-1B abuses.
— The New York Times‘ Editorial Board, June 16, 2016
SEE ALSO:
• New U.S. government data on H-1B visas prove that IT outsourcers hire a lot but pay very little – August 1, 2017
• U.S. law allows low H-1B wages; just look at Apple – May 16, 2017
• President Trump to order review of H-1B visa program to encourage hiring Americans – April 18, 2017
• Tech industry frets over possible H-1B visa program changes under President Trump – January 28, 2017
• President Trump eyes an H-1B visa aimed at ‘best and brightest’ – January 27, 2017
• Silicon Valley chiefs frozen out of President Trump’s White House – December 3, 2016
• Silicon Valley uncertain after Donald Trump wins U.S. presidency – November 10, 2016
• Silicon Valley donated 60 times more to Clinton than to Trump – November 7, 2016
• 99% of Silicon Valley’s political dollars are going to Hillary Clinton – October 25, 2016
• Apple CEO Tim Cook and the rest of Silicon Valley throw big money at Clinton and pretty much bupkis at Trump – August 23, 2016
• Donald Trump’s most unlikely supporter: Silicon Valley billionaire Pete Thiel – July 21, 2016
• Tech investor Peter Thiel’s embrace of Donald Trump for U.S. President has Silicon Valley squirming – July 20, 2016
• An open letter from Apple co-founder Woz, other techies on Donald Trump’s candidacy for U.S. President – July 14, 2016
• Apple refuses to aid 2016 GOP presidential convention over Trump comments – June 18, 2016
• Apple and Silicon Valley employees love Bernie Sanders. Donald Trump? Not so much – May 6, 2016
MacDailyNews Note: Workers who have questions about this settlement can contact IER at 1-888-473-3897 or ierapplecase@usdoj.gov.
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