Capital One, Walmart settles with the Department of Justice regarding vacancies for citizens only

Job ads are displayed outside the new Walmart Super Center as the company opened its first store in Compton, California, US, on January 10, 2017. REUTERS/Mike Blake

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  • The Department of Justice said some college hirings by CarMax, Walmart, Capital One and Axis Analytics were discriminatory.
  • The Department of Justice raised $1.1 million this year in similar cases

(Reuters) – Capital One Bank, Walmart and two other companies have settled claims by the US Department of Justice that job advertisements they made on university recruitment platforms discriminate against non-US citizens.

The Justice Department said Wednesday that companies will pay a total of $331,000 in fines for posting job opportunities with illegal citizenship status restrictions on platforms operated by Georgia Institute of Technology and other schools. All of the companies, which includes used-car retailer Carmax and IT company Axis Analytics, have denied any wrongdoing.

Federal Immigration and Nationality Act (INA) prohibits discrimination against noncitizens in hiring, firing, and hiring, including by linking jobs to citizenship or immigration status.

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In a statement provided by the spokesperson, CarMax denied involvement in discrimination and said it settled the lawsuits to avoid lengthy litigation.

“Welcoming talented workers from diverse backgrounds and creating a sense of belonging for all of our partners is a top priority and key to our success,” the Virginia-based company said.

The other three companies did not immediately respond to requests for comment on Thursday.

Earlier this year, the Department of Justice announced settlements of more than $800,000 of similar claims with 16 other companies including American Express, accounting firm KPMG LLC and Edward Jones Investments. The companies denied any wrongdoing.

The administration said Wednesday that its investigation into job advertisements posted on college platforms began after a Georgia Tech student who was a lawful permanent resident filed a complaint against Capital One.

The Justice Department said it subsequently found discriminatory job advertisements from dozens of employers and is still investigating some of them. Georgia Tech and the other schools have not been accused of wrongdoing.

Under the settlements announced Wednesday, CarMax will pay about $186,000, Axis and Capital One will pay about $50,000 each, and Walmart will pay $41,000, the Justice Department said. The fines depend on the number of allegedly illegal jobs each company has offered.

The companies also agreed to train recruiters on their obligations under immigration and anti-bias laws, and to ensure that their hiring policies comply with INA.

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Daniel Wisner

Thomson Reuters

Danwiessner reports on labor, employment and immigration law, including litigation and policy making. He can be contacted at [email protected]

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