In the quiet corridors of Meta’s Menlo Park headquarters, a storm brews. Once known as Facebook, the tech behemoth now stands accused of sidelining American talent in favor of cheaper, foreign labor. This dramatic turn of events unfolds as the 9th U.S. Circuit Court of Appeals revives a lawsuit, opening a Pandora’s box of accusations and legal precedents.
Purushothaman Rajaram, a naturalized U.S. citizen and seasoned software engineer, spearheads this legal crusade. He alleges Meta’s hiring practices deliberately favor foreign workers, offering them positions at lower wages while sidelining qualified U.S. citizens. His claim, initially dismissed by a California federal judge, gains new life with this latest court decision, potentially representing thousands of affected workers.
The court’s ruling hinges on an interpretation of a Civil War-era law, Section 1981 of the Civil Rights Act of 1866, traditionally used to combat racial discrimination in contracts. The 2-1 decision by the San Francisco-based appellate court marks a pivotal moment, suggesting this law also guards against discrimination based on “alienage” โ effectively protecting U.S. citizens from biased hiring practices.
Meta, the parent company of Facebook, Instagram, and WhatsApp, remains tight-lipped amidst the turmoil, maintaining its stance of innocence in court filings. However, the reverberations of this legal battle are poised to echo across Silicon Valley, challenging the tech industry’s hiring norms.
Attorney Daniel Low, representing Rajaram, underscores the significance of this ruling. “Bias against U.S. citizens is a pervasive issue in tech. We anticipate this decision will embolden more lawsuits aiming to dismantle such discriminatory practices,” he asserts.
This landmark case could pave the way for a slew of similar lawsuits, particularly in the states under the 9th Circuit’s jurisdiction. Unlike the broader Title VII of the Civil Rights Act of 1964, Section 1981 imposes no caps on damages and bypasses the requirement to file complaints with government agencies before suing, offering a potent legal tool for aggrieved workers.
The tech industry has seen similar allegations before. Last year, Apple settled a $25 million lawsuit with the U.S. government over claims of favoring immigrant workers. More recently, conservative groups have called for a federal probe into Tyson Foods’ alleged preference for foreign labor, including undocumented workers and minors โ claims Tyson staunchly denies.
As this case unfolds, the implications for Meta and the wider tech industry are profound, setting the stage for a potential Supreme Court showdown. For now, the spotlight remains firmly on Meta, its hiring practices under intense scrutiny, and the broader debate over fair employment in Americaโs most dynamic industry continues to rage.


