Meta Accused of Refusing to Hire US Citizens to Pay Lower Visa Wages
Naturalized citizen alleges Meta systematically rejected his job applications in favor of H-1B visa holders the company could underpay, violating federal equal-contract-rights law.
Purushothaman Rajaram, a naturalized US citizen and experienced IT project manager, applied multiple times to Meta between 2020 and 2022 but was never hired. He alleges Meta refused to hire him because it prefers noncitizens holding H-1B visas, whom it can pay lower wages than citizens. The district court dismissed his claim, but the Ninth Circuit reversed, ruling that 42 USC Section 1981 prohibits employers from discriminating against US citizens on the basis of their citizenship. The case now returns to trial.
This ruling could reshape how tech giants use visa programs to suppress American workers’ wages.
The Allegations: A Breakdown
| 01 | Meta refused to hire Rajaram, a naturalized US citizen with extensive IT project management experience, on several occasions between 2020 and 2022. | high |
| 02 | Meta allegedly prefers to hire noncitizens holding H-1B visas because the company can pay them lower wages than US citizens. | high |
| 03 | By favoring visa holders over citizens, Meta gave noncitizens a greater right to contract for employment than white citizens, violating Section 1981. | high |
| 04 | The discrimination occurred in multiple job postings across a two-year span, suggesting a systemic hiring pattern rather than isolated incidents. | high |
| 05 | Meta’s alleged practice exploits the H-1B program, which is designed to fill genuine skill shortages, to reduce labor costs instead. | medium |
| 01 | The H-1B visa program allows employers to hire foreign workers for specialty occupations when there is a shortage of skilled workers authorized to work in the United States. | medium |
| 02 | Meta argued that Section 1981 does not bar discrimination based on US citizenship, exploiting ambiguity in civil rights law to avoid liability. | high |
| 03 | The district court initially agreed with Meta, holding that Section 1981 does not protect against citizenship-based discrimination. | high |
| 04 | The Fifth Circuit previously ruled in a 1986 case that discrimination against Americans can never be discrimination based on alienage and is not covered by Section 1981. | medium |
| 05 | Congress has not explicitly amended Section 1981 to clarify whether citizenship discrimination is prohibited, leaving courts to interpret 19th-century statutory language. | medium |
| 06 | Weak enforcement and minimal auditing of H-1B wage requirements allow companies to self-report prevailing wages and benchmark against outdated data. | high |
| 01 | Meta can pay H-1B visa holders lower wages than US citizens for the same work, creating a financial incentive to favor noncitizens in hiring. | high |
| 02 | By systematically hiring lower-cost visa workers instead of citizens, Meta converts salary savings directly into higher quarterly earnings and shareholder returns. | high |
| 03 | The Ninth Circuit noted that Meta’s hiring preference gives noncitizens a greater right to make employment contracts than white citizens, violating the statutory guarantee of equal rights. | high |
| 04 | Meta argued the statute only establishes a floor for noncitizen rights, not a ceiling, allowing the company to give visa holders more favorable treatment than citizens. | medium |
| 05 | The company’s legal defense focused on technicalities and statutory ambiguity rather than addressing the fairness of its hiring practices. | medium |
| 01 | Replacing citizen applicants with lower-paid visa workers suppresses wages across the tech industry, reducing earning power for US professionals. | high |
| 02 | Lower wages for tech workers reduce household incomes, shrinking local tax revenues that fund schools, infrastructure, and public health programs. | high |
| 03 | Wage suppression erodes contributions to Social Security and Medicare, shifting long-term financial burdens onto public programs and taxpayers. | high |
| 04 | Communities near Meta offices see reduced consumer spending when high-earning citizen professionals are displaced by lower-paid workers, harming local businesses. | medium |
| 05 | The practice creates downward wage pressure and stalled career mobility for US tech professionals, forcing many to accept lower salaries or leave the industry. | high |
| 01 | US citizens like Rajaram are locked out of job opportunities despite being qualified, solely because Meta can hire visa workers more cheaply. | high |
| 02 | H-1B visa holders are tied to their employer for legal status, making them hesitant to report abuse, demand raises, or leave exploitative working conditions. | high |
| 03 | The dual-tier workforce created by Meta’s practices serves one end: maximizing labor flexibility and minimizing cost at the expense of all workers. | high |
| 04 | Visa workers face deportation risk if they criticize their employer or lose their job, giving companies enormous leverage to suppress wages and working conditions. | high |
| 05 | Both citizen and noncitizen workers suffer under a system that treats labor as a commodity to be discounted rather than people entitled to fair compensation. | medium |
| 01 | When Meta suppresses wages by favoring visa workers, middle-income professionals lose bargaining power and local tax bases shrink from smaller paychecks and lower payroll taxes. | high |
| 02 | Service businesses including cafes, childcare centers, and retail shops see reduced discretionary spending, tightening economic conditions across neighborhoods. | medium |
| 03 | One blocked career may seem individual, but multiplied across thousands of job postings it becomes a structural drain on regional prosperity. | high |
| 04 | Lower income tax receipts reduce local government capacity to invest in community infrastructure, schools, and public services. | medium |
| 05 | Constricted demand for housing and services ripples through entire regional economies, harming workers far beyond the tech sector. | medium |
| 01 | Meta argued in court that federal civil rights law protects race and alienage but not US citizenship, reframing moral harm as a narrow textual dispute. | medium |
| 02 | The company claimed the statute does not prohibit employers from affording noncitizens greater rights than white citizens, using legal minimalism to avoid accountability. | medium |
| 03 | Meta’s public diversity statements highlight international hiring pipelines while omitting the wage disparities baked into those same hiring practices. | medium |
| 04 | By focusing on statutory interpretation rather than fairness, Meta shifted attention from the harm caused to workers to technical debates over 19th-century legal language. | medium |
| 01 | Meta’s market capitalization hovers in the hundreds of billions, yet the court noted its preference for visa workers it can pay lower wages. | high |
| 02 | The wage spread between market-rate citizen salaries and discounted H-1B wages becomes an eight or nine-figure windfall when scaled across thousands of roles. | high |
| 03 | Money saved on labor flows upward to executives and shareholders, accelerating wealth inequality while middle-class families lose upward mobility. | high |
| 04 | This pattern exemplifies neoliberal capitalism: privatize gains through wage suppression, socialize the downstream costs of stagnant incomes and vanishing opportunity. | high |
| 01 | Even after the Ninth Circuit reversed dismissal, no fines have been levied, no back pay ordered, and no Meta executive has faced personal liability. | high |
| 02 | The appellate victory is provisional, merely sending the case back to trial without immediate relief for affected workers. | medium |
| 03 | The dissenting judge warned the ruling creates a circuit split, signaling years more litigation before clarity or compensation arrives. | medium |
| 04 | For workers, justice postponed is income lost. Each procedural delay allows Meta to continue its alleged wage suppression practices. | high |
| 05 | Section 1981 does not expressly provide a cause of action, forcing plaintiffs to rely on implied remedies that are harder to enforce and easier for defendants to challenge. | medium |
| 01 | Rajaram first applied to Meta in 2020. The district court dismissed his case in 2023. The Ninth Circuit revived it in mid-2024, a four-year span with no resolution. | high |
| 02 | Each procedural appeal buys Meta another fiscal quarter or year of discounted labor while the affected worker’s career stalls and savings erode. | high |
| 03 | Delay is not a side effect but a strategic feature. Corporations flush with cash can afford years of litigation that individual workers cannot. | high |
| 04 | The circuit split between the Ninth and Fifth Circuits guarantees further appeals, likely to the Supreme Court, extending the timeline by years. | medium |
| 05 | Under neoliberal capitalism, regulatory slowness and doctrinal ambiguity function as unwritten subsidies, rewarding firms that can most afford to litigate. | high |
| 01 | Meta’s alleged citizenship discrimination is a microcosm of how profit-maximization incentives override corporate ethics and worker rights. | high |
| 02 | By preferring visa-tied workers it can underpay, Meta compresses middle-class wages, widens wealth disparity, and drains vitality from local economies. | high |
| 03 | Courts debate whether citizens means citizens while communities absorb the hidden costs of wage suppression through reduced tax revenues and economic instability. | high |
| 04 | Until regulators impose real wage floors and swift penalties, companies will continue converting immigration programs into corporate discount aisles. | high |
| 05 | The Ninth Circuit’s ruling affirms that all persons, including citizens, have the same right to make employment contracts, but enforcement remains uncertain. | medium |
| 06 | This case will determine whether equal-opportunity law can still protect American workers or whether legal loopholes will keep funding the next earnings call. | high |
Timeline of Events
Direct Quotes from the Legal Record
“He alleges that Meta refused to hire him because it prefers to hire noncitizens holding H-1B visas to whom it can pay lower wages.”
💡 Establishes Meta’s alleged motive was cost savings through wage suppression, not legitimate skill shortages.
“An employer that discriminates against United States citizens gives one class of people—noncitizens, or perhaps some subset of noncitizens—a greater right to make contracts than white citizens.”
💡 The Ninth Circuit explains how favoring visa holders over citizens violates the equal-contract-rights guarantee.
“The problem with Meta’s position is that the same means the same. It does not mean at least as great as.”
💡 Court rejects Meta’s attempt to rewrite the statute to allow noncitizens more rights than citizens.
“Because the words of section 1981 are unambiguous, our sole function is to enforce the statute according to its clear terms.”
💡 The majority holds the statute clearly protects citizens, leaving no room for Meta’s narrow interpretation.
“Section 1981 protects the would-be contractor along with those who already have made contracts.”
💡 Clarifies that job applicants like Rajaram can sue even if never hired, as discrimination blocked contract formation.
“Section 16 of the 1870 Act was an exercise of Congress’s power under the recently ratified Fourteenth Amendment in response to California legislation restricting the rights of Chinese immigrants.”
💡 Shows Congress extended Section 1981 protections to all persons, not just citizens, to combat alienage discrimination.
“Meta insists that the observation that the statute protects all persons ducks the question presented by this appeal, which is not who can sue under Section 1981, but what plaintiffs can sue about.”
💡 Reveals Meta’s legal strategy: reframe the case as a technical parsing exercise rather than address fairness.
“It’s only natural to think that if Congress protected noncitizens then surely it must have protected citizens too.”
💡 Even the dissenting judge admits the moral appeal of protecting citizens, though he disagrees on statutory interpretation.
“Rajaram first applied in 2020; the district court dismissed in 2023; the Ninth Circuit revived the case in mid-2024.”
💡 Illustrates how procedural complexity buys corporations years of continued profitable misconduct.
“Our conclusion differs from that of the only other court of appeals to consider this issue.”
💡 The split with the Fifth Circuit signals years more litigation before the issue is finally resolved, prolonging harm.
“Discrimination against whites is racial discrimination, but (in America) discrimination against Americans can never be discrimination based on alienage.”
💡 The Fifth Circuit’s 1986 reasoning, now rejected by the Ninth Circuit, allowed companies to favor noncitizens over citizens.
“If white persons as well as nonwhite persons can sue to enforce that guarantee—a principle the McDonald Court considered explicitly set out in the text—then so too can citizens as well as noncitizens.”
💡 The Ninth Circuit extends Supreme Court logic on race discrimination to citizenship discrimination.
“Even this victory is provisional: the appellate court merely reversed dismissal and remanded for trial. No fines have been levied, no back pay ordered, no executive faced liability.”
💡 Workers must wait years more for any compensation, while Meta continues operating under the same practices.
“The text of Section 1981 is not as clear as the majority makes it out to be, and McDonald does nothing to resolve its ambiguity.”
💡 Shows the dissent views this as a close statutory question, not frivolous, but still denies protection to citizens.
“On several occasions between 2020 and 2022, he unsuccessfully applied to work at Meta Platforms, Inc.”
💡 Repeated rejections suggest not random hiring decisions but a pattern of excluding citizen applicants.
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