A US appeals court has revived a lawsuit against Meta Platforms, claiming the company discriminates against US citizens by favoring cheaper foreign workers. This ruling, which interprets a Civil War-era law on discrimination, may prompt more lawsuits and impact how tech companies handle hiring practices, states Reuters.
The San Francisco-based 9th US Circuit Court of Appeals ruled 2-1 that a Civil War-era law prohibiting discrimination in contracts based on "alienage" applies to bias against US citizens. The decision overturns a prior dismissal by a California federal judge of the lawsuit filed by Purushothaman Rajaram, a naturalized US citizen. Rajaram asserts that Meta favors cheaper visa recipients over American workers. He seeks to represent a class of thousands of affected employees. Meta, which owns Facebook, Instagram, and WhatsApp, has denied any wrongdoing.
The 9th Circuit's decision marks the first time it has addressed whether Section 1981 of the Civil Rights Act of 1866, which also prohibits race discrimination in contracts, offers protection against hiring discrimination for US citizens. The ruling contrasts with a 1986 decision by the 5th Circuit Court of Appeals, which concluded that the law does not ban bias against US citizens.
This split between circuits increases the likelihood of the US Supreme Court reviewing the case if Meta decides to appeal. Conservative groups have increasingly used Section 1981 to challenge corporate diversity initiatives and the employment of foreign visa workers.
In a related matter, Apple settled a US government lawsuit last year, agreeing to pay US$25 million over allegations of favoring immigrant workers over US citizens and green card holders, though the company denied any wrongdoing.
Recently, a conservative legal group founded by former Trump administration officials urged a federal investigation into Tyson Foods' hiring practices, accusing the company of disproportionately employing foreign workers, including minors and undocumented individuals. Tyson has denied these allegations.