Federal Agencies Closely Coordinate to Increase Immigration Enforcement Against Employers

 

DOJ Sues & DOL Suspends


Federal Contractors Face Particular Risks Under False Claims Act

Federal agencies increasingly are scrutinizing employers, particularly government contractors, in search of discrimination in favor of visa holders and against U.S. workers based on their citizenship or national origin. Agencies are also aggressively suspending employers’ access to immigration visa sponsorship programs based on these claims of discrimination.


Recent DOJ & DOL Coordinated Investigation, Lawsuit & Employer Suspension


In April 2026, the U.S. Department of Justice (DOJ) filed a lawsuit against Cloudera, Inc. alleging discrimination in the company’s use of the Permanent Labor Certification Program (PERM). DOJ claims that Cloudera favored foreign visa holders to the exclusion of U.S. workers based on their citizenship. DOJ alleges the Company permitted only temporary work visa holders to apply for certain high-paying technology jobs.


Just a few weeks later in May 2026, the U.S. Department of Labor (DOL) suspended Cloudera for 180 days from submitting all PERM applications, with possible extensions of the suspension, depending on the DOJ’s ongoing lawsuit and investigation.


This shift toward coordinated enforcement between these federal agencies on immigration compliance is a new approach. It significantly increases the risk of simultaneous investigations, lawsuits and, importantly, immediate suspension from visa sponsorship programs, even before DOJ or a court reaches a legal conclusion or resolution.


Federal Contractors Face Increased Risk


The coordinated Cloudera enforcement development is particularly concerning for federal contractors, where alleged immigration non-compliance can quickly escalate beyond typical penalties into potentially huge False Claims Act (FCA) exposure.


As an example of DOJ’s growing focus on pursuing immigration-related violations under the FCA, in September 2025, DOJ announced a $4 million settlement with a New Jersey shipbuilder for failing to meet immigration employment (I-9) verification requirements.


Based on the varied remedies available under the laws enforced by DOJ, DOL, and other agencies, federal contractors face broad risks including “treble” damages under the FCA, suspension from visa sponsorship programs, suspension or cancellation of current federal contracts, and future contract debarment.


What Should Employers Do?


Employers should act quickly to audit PERM and other visa sponsorship programs to ensure there is no potential discrimination against U.S. workers based on citizenship or national origin. While considering foreign visa holders for open positions is and remains lawful, the Administration and its enforcement agencies have clearly signaled they are prioritizing claims of workplace discrimination against U.S. citizens.


ANNOUNCEMENT


Silberman Law Launches Full-Service Workplace Immigration Practice


During the past year, our clients increasingly have sought our counsel on workplace immigration matters. The quickly changing and uncertain immigration enforcement landscape creates increased challenges for employers, emphasizing the need for expert legal advice and guidance.


In response, we are pleased to announce that Silberman Law has launched a full-service Workplace Immigration Practice, led by Principal Attorney Steven Williams.


*  *  *  * 


If you have questions about this Alert or want immigration law advice or guidance, please contact the Silberman law legal professional with whom you work, or simply reply to this Alert.


May 18, 2026
Since 1966, private employers with 100 or more employees have been required to annually file EEO-1 reports, requiring employers to submit the race/ethnicity and sex of each of its employees by EEO job category and workforce location. Similarly, non-private entities have been required to file EEO-2, EEO-3, EEO-4, or EEO
April 24, 2026
Effective today, federal agencies must include in new contracts detailed language requiring contractors to certify they “will not engage in any racially discriminatory DEI activities” and that contractors agree to submit to federal agencies detailed data, documents, and responses to agency inquiries
March 30, 2026
On March 26, 2026, President Trump issued a new Executive Order “Addressing DEI Discrimination by Federal Contractors” (“EO”) along with an explanatory Fact Sheet. The new EO states that – “DEI activities are not only unethical and often illegal, but also cause inefficiencies, waste, and abuse within entities that
May 18, 2026
Since 1966, private employers with 100 or more employees have been required to annually file EEO-1 reports, requiring employers to submit the race/ethnicity and sex of each of its employees by EEO job category and workforce location. Similarly, non-private entities have been required to file EEO-2, EEO-3, EEO-4, or EEO
April 24, 2026
Effective today, federal agencies must include in new contracts detailed language requiring contractors to certify they “will not engage in any racially discriminatory DEI activities” and that contractors agree to submit to federal agencies detailed data, documents, and responses to agency inquiries
March 30, 2026
On March 26, 2026, President Trump issued a new Executive Order “Addressing DEI Discrimination by Federal Contractors” (“EO”) along with an explanatory Fact Sheet. The new EO states that – “DEI activities are not only unethical and often illegal, but also cause inefficiencies, waste, and abuse within entities that
March 19, 2026
First, the good news – if you are not employed at a college or university, you need not read further. For those in education, please read on. A federal district court temporarily blocked the collection of expanded IPEDS data on applicants for admission. As we previously shared, the National Center for Education Stati
February 12, 2026
Based on Federal 9th Circuit Court Decision, OFCCP to Disclose Five Years of Government Contractors' EEO-1 Reports OFCCP Announced It Will Release the Reports to The Center for Investigative Reporting on February 25, 2026
Reports Are Due May 13, 2026
February 5, 2026
The California Pay Data Reporting Portal is now open and employers have until Wednesday May13th, 2026 to submit their Payroll Employee and Labor Contractor Reports to the CRD.
Blue title slide:
January 22, 2026
Annual California Pay Data Reporting is upon us again. This year’s deadline, for both Payroll Employee and Labor Contractor Employee Reports, is May 13, 2026.
Blue graphic:
January 21, 2026
Submission of Seven Years of Detailed Data Due by March 18, 2026. The Data Will Be Used for Potential Discrimination Investigations.
Blue slide:
January 14, 2026
Massachusetts requires private employers with 100 or more employees located in the state to submit their most recently filed EEO-1 Reports by February 2, 2026 to the state’s Reporting Portal.
Text on a blue background:
December 12, 2025
President Trump Issued New Executive Order on Artificial Intelligence in December 11, 2025.