Citizenship status discrimination in hiring: who is protected, what counts, and recent IER cases

Citizenship status discrimination is treating someone differently in hiring, firing, or recruitment or referral for a fee because of their citizenship or immigration status. The anti-discrimination provision of the Immigration and Nationality Act, 8 U.S.C. 1324b, bans it for employers with four or more employees and protects U.S. citizens and nationals, recent lawful permanent residents, refugees and asylees, so both a "U.S. citizens only" policy and an "H-1B visa holders only" ad can break the law. As of November 2026, the Justice Department's Immigrant and Employee Rights Section (IER) enforces it with civil penalties of $590 to $4,730 per person for a first violation, and since 2025 it has concentrated on employers that favor temporary-visa workers over U.S. workers.

The everyday versions of this rule are covered elsewhere: what to ask in an interview in work authorization questions in interviews, how to word ads in visa sponsorship language in job postings, and when a job may require citizenship in can a job require U.S. citizenship? This page explains the law itself: who is protected, the exceptions, what IER has penalized and what it costs.

What does the law prohibit?

Section 1324b(a) creates four related protections. Citizenship status discrimination is one; the others often show up in the same case.

The employer-size figures come from IER's FAQ and its best practices page. The documentary rule matters because demanding a green card from a lawful permanent resident, or extra papers from a refugee, is a common way citizenship status discrimination happens after the offer. See I-9 document abuse and I-9 List A, B and C documents.

Who is protected from citizenship status discrimination?

Section 1324b(a)(3) defines a "protected individual" as someone who is:

• a U.S. citizen or U.S. national;
• a lawful permanent resident, except one who did not apply for naturalization within six months of first becoming eligible, or who applied on time but was not naturalized within two years and cannot show they are actively pursuing it (USCIS processing time does not count);
• a person admitted as a refugee or granted asylum; or
• a person granted temporary residence under the 1986 legalization and agricultural worker programs.

Workers on temporary visas, such as H-1B, TN, O-1 or F-1 students on OPT, are not protected individuals for this part of the law, which is why an employer may decline to sponsor visas. They are still protected from national origin discrimination, unfair documentary practices and retaliation, and from other laws.

When can an employer lawfully consider citizenship?

1. When the law or a government contract requires it. Section 1324b(a)(2)(C) exempts discrimination "otherwise required in order to comply with law, regulation, or executive order, or required by Federal, State, or local government contract," or that the Attorney General determines is essential to do business with a government agency. Security clearance roles are the common example; export control rules are not, because IER says "Nothing under the ITAR or the EAR requires or allows an employer to limit jobs to U.S. citizens."
2. As a tie-breaker. Section 1324b(a)(4) lets an employer prefer to hire, recruit or refer a citizen or national over a noncitizen "if the two individuals are equally qualified." It is a narrow rule for a single decision between two equal candidates, not a policy.
3. When it declines to sponsor. Because visa holders who need sponsorship are not protected individuals, a consistent no-sponsorship policy is not citizenship status discrimination. IER's 2023 settlement with N2 Services expressly allows an ad saying the employer is only considering candidates who can work without sponsorship.

What does citizenship status discrimination look like in recent cases?

Sources: IER's settlements page and its fiscal 2026 letters of resolution. Letters of resolution often record voluntary changes rather than findings of a violation.

Does the law protect U.S. citizens too?

Yes, and that is where enforcement has moved. The Justice Department's August 4, 2026 release on the OpenAI settlement called it the thirteenth settlement since the Department re-launched its Protecting U.S. Workers Initiative in 2025. The pattern in those cases is an employer recruiting for a job it plans to fill with a visa worker, then making it harder for U.S. workers to apply than for any other job. IER's September 2022 letter confirms the rule applies in PERM recruitment, citing United States v. Facebook, 14 OCAHO no. 1386b (2021). For the PERM rules themselves, see PERM recruitment requirements.

What are the penalties and deadlines?

IER's FAQ says charges must be filed within 180 days of the alleged discrimination or retaliation. IER can also open its own investigations, as many of the cases above show, and contested cases go to an administrative law judge. For civil penalties assessed after July 3, 2025, 28 CFR 85.5 sets these ranges, per individual discriminated against:

Settlements often add back pay, training, policy changes and two or three years of monitoring. Recent PERM settlements also required the employer to recruit for PERM jobs the same way it recruits for others.

How is it different from national origin discrimination?

Citizenship status is about legal status: citizen, permanent resident, refugee, visa holder. National origin is about where a person or their ancestors come from, or traits linked to it, such as accent. A naturalized citizen rejected for being "not born here" may raise both. Title VII does not list citizenship, but the EEOC's citizenship page advises that most employers should not ask whether an applicant is a citizen before an offer. For the full list of risky questions, see illegal interview questions.

How do you prevent it? A checklist for recruiters and staffing agencies

1. Postings: no citizenship or visa-status restrictions unless a documented legal requirement applies; a sponsorship line is fine. See discriminatory job ad language.
2. Applications and interviews: only the two IER questions, asked of everyone: authorized to work in the U.S., and need for sponsorship now or later.
3. Client job orders: ask for the contract clause or regulation behind any citizenship requirement and keep it with the order; decline the restriction if there is none.
4. Visa-linked recruiting: run PERM and H-2B recruitment through your normal channels, with electronic applications and your applicant tracking system, and consider every U.S. applicant.
5. Form I-9: let employees choose their documents, never reverify green cards, and keep export control checks separate from the I-9.
6. E-Verify: the EEOC notes that E-Verify employers must use it consistently, without regard to citizenship, immigration status or national origin; see E-Verify for staffing agencies.
7. Tools: check AI-drafted ads and default screening questions, since IER settled over AI-generated ads in February 2026.
8. Training and records: train everyone who recruits, including outside recruiters, and keep ad copy, screening criteria and rejection reasons.

Penalties for paperwork errors on Form I-9 itself are a separate regime; see Form I-9 penalties. IER's employer hotline is 1-800-255-8155.