DOJ settles case over AI job ads excluding American workers
The U.S. Department of Justice has reached a settlement with a Virginia-based technology services company after finding that its job postings unlawfully shut out American workers. The case centers on Elegant Enterprise-Wide Solutions Inc., an IT services firm that relied on artificial intelligence software to write job ads that limited who could apply. Those ads stated that only people holding certain work visas, such as H-1B, OPT, or H-4, would be considered, even though federal law does not allow employers to narrow hiring in that way.
Federal officials said the company’s use of automated tools did not excuse the outcome. Under the Immigration and Nationality Act, employers may not favor foreign visa holders over U.S. citizens or other work-authorized individuals unless a specific legal rule allows it. In this situation, investigators concluded no such rule applied. By posting ads that excluded Americans by default, the company crossed a legal line, regardless of whether a human or a computer wrote the text.
The settlement was announced by the Civil Rights Division, which has stepped up enforcement in this area over the past year. The agreement resolves claims that the company engaged in citizenship status discrimination during hiring. While the full financial terms were not released in the announcement, similar cases have involved civil fines and, when appropriate, back pay to affected workers. Employers in these cases are also required to change their hiring practices and train staff to follow the law going forward.
Justice Department leaders emphasized that the case sends a message to employers across industries that new hiring tools come with old responsibilities. Automated systems can speed up recruiting, but companies remain accountable for what those systems produce. Job ads, screening tools, and other hiring materials must still follow federal rules that protect workers from unfair treatment. Passing that work to software does not transfer legal duty.
This case marked the eighth settlement reached since the Department restarted its Protecting U.S. Workers Initiative in 2025. That effort focuses on employers that block Americans from jobs by favoring visa holders without legal cause. According to officials, the initiative seeks not only penalties, but also lasting changes inside workplaces. Companies covered by these agreements must review how jobs are advertised, stop using unlawful language, and educate managers and recruiters on proper hiring standards.
The growing use of artificial intelligence in hiring has raised questions across the labor market. Many firms now rely on automated tools to write job descriptions, filter resumes, and rank candidates. While these systems can save time, they can also repeat errors or add limits that break the law if left unchecked. Federal officials have warned that employers need to review AI-generated content before it goes live, especially when it touches on protected traits like citizenship or work status.
For workers, the case highlights that legal protections still apply even as hiring methods change. Americans who believe they were turned away from positions because of AI job ads and unlawful restrictions can seek help from the Justice Department’s Immigrant and Employee Rights Section. Employers can also request guidance to better understand the rules and avoid similar problems.
The settlement reflects a broader effort by federal agencies to keep pace with new technology while enforcing long-standing worker protections. As companies continue to adopt automated tools, the government has made clear that innovation does not cancel the law. Hiring decisions, whether shaped by people or machines, must remain open, fair, and based on lawful criteria.
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DoJ settlement over visa-restricted job adverts highlights corporate immigration risk
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