Meta, the parent company of Facebook and Instagram, is facing a lawsuit alleging that it favored foreign workers over American citizens in its hiring practices. A U.S. federal judge has ruled that the lawsuit, which claims Meta prefers H-1B visa holders because they can be paid less, can proceed. The case, Rajaram et al v. Meta Platforms Inc., is being heard in the U.S. District Court for the Northern District of California. This legal challenge could have significant implications for tech industry hiring practices, particularly concerning H-1B visas. Meta has denied the allegations, stating there is no evidence of intentional discrimination against American workers.

The lawsuit was filed by three U.S. citizens—Purushothaman Rajaram, an IT worker; Ekta Bhatia, a software engineer; and Qun Wang, a data scientist. They allege that they applied for multiple positions at Meta between 2020 and 2024 but were not hired despite being qualified. They argue that Meta systematically prefers foreign visa holders over American citizens. U.S. Magistrate Judge Laurel Beeler pointed to statistics showing that 15% of Meta’s U.S. workforce are H-1B visa holders, compared to 0.5% of the overall U.S. workforce. The judge also referenced a previous case in October 2021, where Meta agreed to a settlement of up to $14.25 million over similar accusations of favoring temporary visa holders over American workers.

Meta has dismissed the claims as baseless and stated that it will defend itself in court. The company argued that there is no evidence it intended to discriminate or that the plaintiffs would have been hired if they were not U.S. citizens. The lawsuit was initially dismissed in November 2022 when only Rajaram was involved, but a federal appeals court revived it in June 2023. The court ruled that the claims were valid under Section 1981 of the Civil Rights Act of 1866, which prohibits discrimination based on nationality or citizenship status. Plaintiffs’ attorney Daniel Low expressed hope that the lawsuit would reduce the tech industry’s preference for visa workers.

The lawsuit against Meta comes amid broader concerns over U.S. tech companies’ reliance on H-1B visa workers. The visa program, designed to allow skilled foreign professionals to work in the U.S., has been criticized for being misused to suppress wages and sideline American workers. Critics argue that companies exploit legal loopholes to prioritize foreign hiring. The Trump administration implemented stricter policies on H-1B visa approvals, and the Biden administration has also introduced measures aimed at reforming the visa system. With the legal battle now moving forward, the case against Meta could have implications for other tech giants that rely heavily on H-1B workers.