The Equal Employment Opportunity Commission (“EEOC”) has made one thing clear: Prioritizing foreign workers over American citizens is a violation of federal law, and the agency is cracking down on it.
On February 19, 2025, the EEOC’s Acting Chair, Andrea Lucas, announced a renewed push to enforce national origin discrimination laws against employers who illegally favor non-American workers. If your business prioritizes foreign labor, whether due to cost, work ethic perceptions, or client preferences, you could be in violation of Title VII of the Civil Rights Act.
Recent enforcement actions
In a notable case, LeoPalace Resort in Guam agreed to pay more than $1.4 million to settle allegations of favoring Japanese workers over American employees. The resort was accused of compensating American staff less than their Japanese counterparts.
What’s changing?
The EEOC has always enforced federal anti-discrimination laws, but this new focus means heightened scrutiny for businesses. The agency has pledged to:
- Investigate companies that show hiring bias against American workers.
- Collaborate with other agencies (including the Department of Justice and the Department of Labor) to curb illegal hiring practices.
- Pursue more lawsuits against employers who violate Title VII.
Why this matters to employers
Many companies unknowingly engage in hiring practices that could now trigger an EEOC investigation or lawsuit, such as:
- Prioritizing visa-sponsored candidates over American applicants.
- Assuming foreign workers have a stronger work ethic than American employees when making hiring, salary, or promotion decisions.
- Hiring based on customer preference for non-American workers.
- Offering lower wages to foreign workers under the assumption that they are less likely to push back on labor laws.
How to stay compliant
To safeguard your business from costly lawsuits and penalties, it’s essential to train hiring managers to recognize and eliminate biases in recruitment, review hiring policies to ensure they don’t inadvertently disadvantage American workers, and audit employment decisions to confirm compliance with EEOC regulations and federal law.
Need help reviewing your hiring practices and other employment policies? We’re here to ensure your business stays compliant while making smart, fair hiring decisions. Call us at 973.787.8442 or email legaladmin@alixrubinlaw.com.
This blog is for informational purposes only. It is not offered as legal advice, nor is it intended to create an attorney-client relationship with any reader. For specific legal guidance, consult a qualified employment attorney in your jurisdiction.
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