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US Fines IT Firm $9,460 for AI-Generated Job Ads That Excluded American Workers

The U.S. Department of Justice has settled with Virginia-based Elegant Enterprise-Wide Solutions after the company used an AI tool to create job advertisements that unlawfully restricted applicants to specific visa holders, excluding U.S. workers. The company agreed to pay a $9,460 civil penalty and must reform its hiring practices to avoid citizenship-based discrimination. This case marks the eighth settlement under the DOJ's re-launched Protecting US Workers Initiative, which enforces anti-discrimination provisions in immigration law. The settlement also mandates staff training and prohibits retaliation against individuals involved in the case.

Key Points: DOJ Fines Company for AI Job Ads Discriminating Against US Workers

  • Settlement over AI-generated discriminatory job ads
  • $9,460 civil penalty for violating immigration law
  • Part of DOJ's Protecting US Workers Initiative
  • Requires company training and policy changes
2 min read

Justice Department fines IT company for AI job ads excluding US workers

The Justice Department settles with an IT firm for using AI to create job ads that illegally favored visa holders over US workers, resulting in a civil penalty.

"It is unconscionable for companies to illegally exclude US workers when recruiting and hiring. - Harmeet K. Dhillon"

Washington, Feb 26

The US Department of Justice has reached a settlement with a Virginia-based IT services company after it allegedly used artificial intelligence to generate job advertisements that excluded American workers.

The Civil Rights Division said it secured a settlement agreement with Elegant Enterprise-Wide Solutions, describing it as a "Virginia IT professional service provider".

The department said the settlement "addresses allegations that the company violated the Immigration and Nationality Act (INA) when it posted job advertisements generated by an artificial intelligence (AI) tool that included citizenship status restrictions not authorised by law, including language restricting consideration only to applicants with H-1B, OPT, or H-4 visas."

"It is unconscionable for companies to illegally exclude US workers when recruiting and hiring," said Assistant Attorney General Harmeet K. Dhillon of the Justice Department's Civil Rights Division.

"This Department of Justice will not tolerate discriminating against U.S. workers, no matter who -- or what -- drafts a job advertisement, or whether it is an employee, a recruiter, or an AI tool," Dhillon added.

According to the signed settlement agreement dated February 23, 2026, the company agreed to pay a civil penalty of $9,460 in two instalments of $4,730 each.

The department said this is the eighth settlement since it re-launched its Protecting US Workers Initiative in 2025. The initiative enforces the INA's prohibition on discrimination based on citizenship status against companies that favour workers with employment visas over US workers.

Under such settlements, the department "obtains civil penalties for each violation and will continue to seek the maximum penalty permitted by law."

It added that the agreements "also involve awards of back pay, when warranted, and require employers to conduct comprehensive training to relevant staff and recruiters and cease restricting consideration for job opportunities based on workers' citizenship status without a lawful reason."

As part of the agreement, the company must not "discriminate against individuals based on citizenship status or national origin during the recruitment, hiring, firing, or employment eligibility verification and reverification processes".

It must also not "intimidate, threaten, coerce or retaliate against any person" for participating in the matter.

The Justice Department has, in recent years, stepped up enforcement of anti-discrimination provisions under the US immigration law. The Immigration and Nationality Act bars employers from favouring temporary visa holders over US citizens and certain authorised workers unless required by law or government contract.

- IANS

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Reader Comments

S
Sarah B
Interesting to see Harmeet K. Dhillon leading this. The fine seems very small though—less than $10,000? For a company, that's probably just the cost of doing business. Won't act as a real deterrent. The back pay and training requirements are more meaningful.
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Aditya G
The problem is the tool, not the intent? Bhai, come on. Someone programmed that AI to look for those specific visa keywords. This is a classic case of companies wanting to pay less by preferring visa-dependent workers who might accept lower salaries. Glad it's being called out.
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Priyanka N
As someone whose husband is on H-1B, this is a double-edged sword. We want fair opportunities, but also worry about backlash against all visa holders. Companies should hire the best person for the job, full stop. Not based on passport or visa status.
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Michael C
Eighth settlement since 2025? Shows this is a widespread practice. The "Protecting US Workers Initiative" is clearly needed. Hope this leads to more scrutiny on how these AI recruitment tools are built and trained. Garbage in, garbage out.
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Karthik V
A respectful criticism: While the DOJ action is correct, the narrative often simplifies to "companies vs. US workers." Many Indian techies on these visas are incredibly skilled and contribute massively to the US economy. The system itself needs reform to be more merit-based and less exploitative for everyone.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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