Apple Inc (AAPL.O) has agreed to a $25 million settlement with the U.S. Department of Justice following allegations that the company unlawfully prioritized immigrant workers over U.S. citizens and green card holders for specific positions, as announced by the agency on Thursday. The Justice Department stated that Apple violated federal law by not actively recruiting U.S. citizens or permanent residents for roles eligible for a federal program that permits employers to sponsor immigrant workers for green cards. This action constitutes discrimination based on citizenship, according to the federal law.
This settlement represents the Justice Department’s most substantial resolution to date in cases involving allegations of discrimination based on citizenship, according to the agency.
The agreement mandates that Apple pays $6.75 million in civil penalties, along with $18.25 million allocated for an undisclosed number of impacted workers.
In response, Apple acknowledged in a statement that it had inadvertently failed to adhere to the Department of Justice’s standards. The company stated that it has put in place a comprehensive remediation plan to align with the requirements of various government agencies, emphasizing its commitment to hiring American workers and fostering growth in the United States.
The Justice Department did not provide details on which specific Apple positions were impacted by these recruitment practices or the advantages Apple may have gained from them.
Hiring foreign labor can be cost-effective compared to employing U.S. workers, and immigrants dependent on employer-sponsored green card sponsorship may be perceived as less inclined to switch to another job.
In addition to the financial settlement, Apple has committed to bringing its recruitment practices for positions covered by the PERM program in line with its standard procedures. The company will need to undertake more comprehensive recruitment efforts and provide training to its employees on anti-discrimination laws, as outlined in the settlement.