Employers utilizing the PERM labor certification process should take note of a recent settlement between Cloudera, Inc., the U.S. Department of Justice (DOJ), and the U.S. Department of Labor (DOL). (DOJ Settlement Announcement). The matter underscores the significant compliance risks that can arise from seemingly routine recruitment procedures. The central lesson is straightforward: PERM compliance depends not only on compliant advertisements, but also on whether U.S. workers can actually submit applications and receive meaningful consideration. 

According to the government, Cloudera, Inc. entered into a settlement agreement with the Department of Justice’s Immigrant and Employee Rights Section (IER) and the DOL to resolve allegations that the company disadvantaged U.S. workers during the PERM recruitment process. The settlement imposed significant financial, operational, and program-related consequences. Cloudera denied the allegations and stated that it did not act with discriminatory intent.  

What the Government Alleged 

The government’s investigation focused on how certain PERM positions were advertised and how applications were received. 

According to the settlement announcement, from at least March 2024 through January 2025, Cloudera allegedly handled applications for PERM-sponsored positions differently than applications for its other job openings. Rather than directing candidates to apply through the company’s normal recruitment channels, the PERM advertisements instructed applicants to submit applications through a dedicated email address. The government alleged that the email inbox could not receive messages from external accounts. As a result, applicants who followed the advertisement’s instructions allegedly could not submit their materials for consideration. The government identified at least one affected U.S. worker.  

Settlement Terms 

Under the settlement, Cloudera agreed to: 

• Pay $600,000 in civil penalties.  
• Create a $1.4 million back pay fund for potentially affected U.S. workers.  
• Voluntarily withdraw certain PERM applications and refrain from filing PERM applications for a 24-month period.  
• Implement enhanced recruitment procedures for future PERM cases, should the company resume PERM sponsorship.  
• Subject its PERM recruitment practices to reporting, training, and oversight requirements.  

Importantly, Cloudera stated that it took corrective action after learning of the email issue and denied that the conduct was intentional or discriminatory.  

Key Compliance Lessons for Employers 

While each PERM case presents unique facts, the settlement highlights several practical measures that employers should consider implementing now. 

1. Test Every Application Channel Before Recruitment Begins

Employers often focus on the content of recruitment advertisements while overlooking the functionality of the application process itself. A recruitment method that is technically unavailable to U.S. workers can create significant compliance concerns even if the underlying issue is unintentional. 

Before recruitment begins, employers should: 

• Test all application links, portals, and email addresses. 
• Verify functionality from outside the company’s network. 
• Conduct periodic checks throughout the recruitment period. 
• Maintain documentation showing that testing was performed. 

2. Align PERM Recruitment with Standard Hiring Processes

PERM recruitment must be conducted in good faith to identify qualified U.S. workers. One compliance risk arises when PERM positions are handled differently from comparable non-PERM positions without a legitimate business reason. 

Employers should consider: 

• Posting PERM-sponsored roles through the same careers website used for other positions. 
• Using the same applicant tracking system (ATS) utilized for ordinary hiring. 
• Applying consistent procedures for application intake and candidate review. 
• Ensuring recruiting personnel understand that PERM recruitment is not merely a regulatory exercise but a genuine labor market test. 

3. Ensure U.S. Applicants Receive Full Consideration

The PERM process requires employers to evaluate U.S. worker applicants fairly and consistently. Even inadvertent barriers that prevent applications from being received can undermine the integrity of the recruitment process.     

Organizations should establish controls to confirm that: 

• Applications are successfully received and logged. 
• Recruiting personnel review all applicants for minimum qualifications. 
• Applicant dispositions are accurately documented. 
• Recruitment records are retained and auditable. 

4. Regularly Audit PERM Recruitment Practices

This case demonstrates that government scrutiny increasingly extends beyond the wording of recruitment advertisements and into the operational mechanics of recruiting systems. 

Periodic internal audits can help identify: 

• Broken application links. 
• Inactive or inaccessible email accounts. 
• Inconsistencies between PERM and non-PERM recruitment procedures. 

Employers with significant PERM volume may benefit from annual reviews involving legal counsel, HR, recruiting teams, and system administrators. 

Foster’s Takeaway   

The Cloudera settlement serves as a reminder that PERM compliance is about more than satisfying regulatory recruitment requirements on paper. Employers must ensure that their recruitment processes function as intended and provide U.S. workers a meaningful opportunity to apply and be considered for available positions.  

For employers sponsoring foreign national employees through the PERM process, now is an appropriate time to review recruitment workflows, test application systems, and confirm that PERM positions are integrated into standard recruiting practices rather than handled through separate or informal channels.