Meta Faces Lawsuit: US Citizens Claim Bias Against American Workers

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A U.S. appeals court has revived a class action lawsuit alleging that Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, discriminated against U.S. citizens in favor of hiring foreign workers who can be paid lower wages. The 9th U.S. Circuit Court of Appeals, in a 2-1 decision, ruled that a Civil War-era law prohibiting discrimination in contracts based on “alienage” (Section 1981 of the Civil Rights Act of 1866) extends to bias against U.S. citizens.

This ruling overturns a previous dismissal by a California federal judge of the lawsuit filed by Purushothaman Rajaram, a naturalized U.S. citizen. Rajaram claims Meta systematically bypasses American workers for job opportunities, favoring cheaper visa holders. He aims to represent a class of thousands of workers allegedly affected by this practice. Meta has denied any wrongdoing and asserted that Rajaram failed to demonstrate intentional discrimination.

Daniel Low, Rajaram’s lawyer, highlighted that bias against U.S. citizens is a pervasive issue in the tech industry and expressed hope that this ruling would encourage more lawsuits to address such discrimination. The 9th Circuit’s decision is notable as it is the first time this court has considered whether Section 1981 protects U.S. citizens from hiring discrimination. This ruling contrasts with a 1986 decision by the 5th Circuit, which stated the law does not prohibit bias against U.S. citizens. The discrepancy between the circuits increases the likelihood that the U.S. Supreme Court could eventually review the case if Meta appeals.

This decision could significantly impact the tech industry and beyond, particularly in California and the other states under the 9th Circuit’s jurisdiction. Unlike Title VII of the Civil Rights Act of 1964, Section 1981 does not limit the damages plaintiffs can receive and does not require them to file complaints with government agencies before pursuing lawsuits. 

The ruling comes amid increasing scrutiny of tech companies’ hiring practices. For instance, Apple settled a lawsuit last year by agreeing to pay $25 million to address allegations of favoring immigrant workers over U.S. citizens and green card holders, though it denied any wrongdoing. Similarly, a conservative legal group recently called for an investigation into Tyson Foods’ hiring practices, alleging the company disproportionately hires foreign workers, including minors and undocumented individuals. Tyson has refuted these claims as “completely false.”