A federal judge on Tuesday said Meta Platforms must face a lawsuit claiming that the Facebook and Instagram parent prefers to hire foreign workers because it can pay them less than American workers.

U.S. Magistrate Judge Laurel Beeler in San Francisco has ruled that three American citizens who allege Meta did not hire them despite their qualifications can move forward with a proposed class action lawsuit.

Meta and its legal representatives have not yet provided a response to inquiries for comment.

The plaintiffs—information technology professional Purushothaman Rajaram, software engineer Ekta Bhatia, both naturalized U.S. citizens, and data scientist Qun Wang—claim they applied for multiple positions at Meta between 2020 and 2024 but were rejected due to the company's "systematic preference" for visa holders.

Headquartered in Menlo Park, California, Meta contends that there is no evidence of discriminatory intent and asserts that the plaintiffs would not have been hired even if they were not U.S. citizens.

However, the judge referenced data indicating that 15% of Meta's U.S. workforce holds H-1B visas, which are typically granted to foreign professionals, in contrast to just 0.5% of the overall workforce.

Additionally, she pointed to Meta's October 2021 agreement to pay up to $14.25 million, including a civil penalty, to resolve federal claims that it routinely overlooked American workers for positions designated for temporary visa holders.

“These allegations support the plaintiffs’ overall complaint that they were not hired because Meta favors H-1B visa holders,” Beeler stated.

The government initiated legal action against Meta in December 2020, just seven weeks prior to President Donald Trump concluding his first term in office.

“We are hopeful that the lawsuit will help remedy the favoritism towards visa workers that is common in the tech industry,” Daniel Low, a lawyer for the three plaintiffs, said in an email. “Fully addressing the issue will require additional enforcement or legislative reform.”

Beeler had previously dismissed an earlier iteration of the lawsuit, which included only Rajaram as a plaintiff, in November 2022.

A split federal appeals court reinstated the case last June, citing a Civil War-era statute that prohibits discrimination in contracts based on “alienage,” thereby protecting U.S. citizens from bias.

Numerous conservative organizations have referenced Section 1981 of the Civil Rights Act of 1866 in their efforts to contest workplace diversity initiatives, a stance that is also supported by Trump. 

The case in question is Rajaram et al v Meta Platforms Inc, U.S. District Court, Northern District of California, No. 22-02920.