Meta Platforms, the parent company of Facebook and Instagram, is facing a class-action lawsuit in the United States for allegedly favoring foreign workers on H-1B visas over American citizens in its hiring practices.
The lawsuit, filed by three U.S. citizens, claims that Meta systematically prioritized hiring H-1B visa holders between 2020 and 2024 to reduce labor costs.
This report delves into the details of the lawsuit, the allegations, and the broader implications for the tech industry.
The lawsuit was initially dismissed in 2022 when only Rajaram was a plaintiff. A federal appeals court reinstated the case in June 2023.
The court cited Section 1981 of the Civil Rights Act of 1866, which protects U.S. citizens from discrimination in contracts based on alienage.
The law has been referenced by conservative groups challenging workplace diversity programs.
Allegations on Meta, Response from Company, Judicial Ruling
The lawsuit was filed by Purushothaman Rajaram, an IT worker; Ekta Bhatia, a software engineer; and Qun Wang, a data scientist.
They allege that despite being qualified, they were denied jobs at Meta because the company preferred hiring foreign workers who required visa sponsorship.
The plaintiffs argue that Meta’s hiring practices disproportionately benefited non-citizens, creating an unfair disadvantage for American professionals.
Meta has denied the allegations, calling them “baseless” and asserting that there is no evidence of intentional discrimination against American workers.
The company stated that it would “vigorously defend” itself against the lawsuit.
It argued that there is no proof the plaintiffs would have been hired if they were not U.S. citizens.
U.S. Magistrate Judge Laurel Beeler, based in San Francisco, allowed the proposed class-action lawsuit to proceed.
Judge Laurel cited data showing that 15% of Meta’s U.S. workforce holds H-1B visas. This percentage is significantly higher than the 0.5% rate in the overall workforce.
She also referenced Meta’s 2021 settlement.
The company agreed to pay up to $14.25 million, including a civil fine, to resolve federal claims that it had excluded American workers from certain job openings.
Broader Concerns Over H-1B Visa Program
The lawsuit against Meta comes amid broader concerns over the tech industry’s reliance on H-1B visa workers.
The H-1B visa program is designed to allow skilled foreign professionals to work in the U.S.
However, it has been criticized for being misused to suppress wages and sideline American workers.
Several reports have highlighted cases where companies favor H-1B workers due to lower salary expectations.
This is particularly prevalent in the tech sector, where visa sponsorship control is also a significant factor.
In recent years, the U.S. government has taken steps to address these concerns.
The Trump administration implemented stricter policies on H-1B visa approvals, citing the need to protect American jobs.
The Biden administration has introduced measures aimed at reforming the visa system.
These measures include increasing scrutiny of employers and adjusting wage requirements.
However, the demand for H-1B visas remains high, with annual caps being reached quickly each year.
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