Jonal Laboratories DOJ Settlement: Excluding Work-Authorized Non-Citizens from Jobs

Jonal Laboratories DOJ Settlement: "Citizens and Green Card Holders Only" Is Still Illegal

On November 24, 2025, the U.S. Department of Justice announced a settlement with Jonal Laboratories Inc. after the company limited job opportunities to U.S. citizens and lawful permanent residents — while excluding refugees, asylees, Temporary Protected Status holders, and other individuals who are equally authorized to work in the United States.

No civil penalty amount was publicly disclosed in the Jonal Laboratories settlement. The resolution focused on training and policy revision requirements rather than a financial penalty. But the legal principle the case establishes is one of the most important — and most misunderstood — in § 1324b compliance: "citizens and green card holders only" is not a safe harbor. It is itself a federal violation.

Many employers believe that if they hire only U.S. citizens and permanent residents, they are on solid legal ground. After all, those are the most established categories of work authorization — surely restricting to those categories is conservative, not discriminatory?

Wrong. And the Jonal Laboratories case is the 2025 proof.

Who Is Jonal Laboratories?

Jonal Laboratories Inc. is a company operating in a technical or laboratory industry — precise details of its business are not publicly disclosed in the DOJ's settlement announcement beyond the settlement terms and violation description. What matters for compliance purposes is not the company's specific industry but what it did: it limited employment opportunities to U.S. citizens and lawful permanent residents without a legally valid basis for that restriction.

This type of over-restriction can occur in any industry where employers believe (incorrectly) that limiting to "established" immigration statuses is more conservative or compliant than accepting all work-authorized individuals.

The Violation: Over-Restriction as Discrimination

The § 1324b violations that receive the most attention involve employers who prefer foreign visa holders over U.S. workers — the H-1B job ad cases that dominate the 2025 enforcement record. But § 1324b's prohibition runs in both directions.

An employer can also violate § 1324b by being too restrictive — by limiting employment to a subset of protected individuals without legal justification, thereby excluding other members of the protected class.

The Protected Class Under § 1324b

8 U.S.C. § 1324b protects the following from citizenship status discrimination:

• U.S. citizens and U.S. nationals
• Lawful permanent residents (LPRs)
• Refugees who have been granted work authorization
• Asylees who have been granted work authorization
• Temporary Protected Status (TPS) holders
• Certain other work-authorized individuals

When Jonal Laboratories limited positions to U.S. citizens and LPRs only, it excluded refugees, asylees, and TPS holders — all of whom are in the protected class and all of whom are lawfully authorized to work in the United States.

This exclusion is illegal citizenship status discrimination, regardless of the employer's intent. The company was not discriminating against foreigners in favor of Americans — it was discriminating against a subset of work-authorized Americans in favor of a narrower subset of work-authorized Americans. That is still § 1324b discrimination.

Why Employers Make This Mistake

The "citizens and green card holders only" restriction typically arises from one of several misconceptions:

Misconception 1: "We're just being conservative." Some employers believe that restricting to the most established categories of work authorization reduces risk — perhaps because they are concerned about I-9 reverification requirements for time-limited work authorizations, or worried about employees' work authorization expiring. The solution to those concerns is proper reverification procedures, not blanket exclusion of entire protected classes.

Misconception 2: "Refugees and asylees might have temporary authorization." Refugees and asylees have work authorization that does not expire (though they must maintain their refugee or asylee status). TPS holders have work authorization that is renewed periodically. These complexities may lead employers to incorrectly assume they can exclude these categories to simplify HR administration. They cannot.

Misconception 3: "We need workers with long-term stability." Concerns about workforce stability are not a justification for § 1324b discrimination. All employees — regardless of immigration status — may leave for other employment. The fact that a refugee or asylee's long-term presence in the United States is connected to their status does not justify excluding them from employment.

Misconception 4: "Government contracting requires it." Some government contracts require that certain personnel be U.S. citizens for security clearance or access control purposes. This is a legitimate, narrow exception — but it must be supported by actual legal authority (the specific contract provision or applicable law), must be applied only to the positions that require it, and cannot be used as a blanket policy for all positions.

The Four Categories of Lawful Restriction on Citizenship Status

§ 1324b does provide exceptions allowing employers to restrict certain positions to specific citizenship categories. These exceptions are narrow:

1. Positions Required by Law to Be Filled by Citizens

Some federal laws require that certain roles be filled by U.S. citizens. For example, federal statutes require certain positions with the federal government to be filled by citizens. These requirements, where they exist, are created by specific statutory authority — not by employer preference.

2. Government Contract Requirements

Federal contractors may have contractual or regulatory requirements to employ only U.S. citizens on specific classified or sensitive projects. These requirements must be explicitly documented in the contract or applicable regulation, and can only justify citizenship restrictions for the specific positions covered.

3. Security Clearance Requirements

Access to classified national security information often requires U.S. citizenship. Positions genuinely requiring a security clearance can lawfully be limited to U.S. citizens — but only if the clearance requirement is real, documented, and applicable to the specific position.

4. Executive Orders or Regulations

Certain executive orders governing federal contractor employment may impose citizenship requirements on specified positions. These must be tracked carefully as they change between administrations.

What is not in this list: A general preference for citizens and LPRs because they seem more stable, more established, or more convenient to hire. Business preference is not a legal exception to § 1324b.

Refugees, Asylees, and TPS Holders: Who They Are

Employers who have been operating with a "citizens and green card holders only" policy may not fully understand who they have been excluding. A brief overview:

Refugees

Refugees are individuals who have been recognized as meeting the legal definition of a refugee (a person fleeing persecution based on race, religion, nationality, political opinion, or social group membership) and have been admitted to the United States in that status. Refugees have immediate work authorization upon admission and can apply for lawful permanent residence after one year. Many refugees have deep skills, education, and professional experience relevant to employers across industries.

Work authorization: Form I-94 with "RE" notation, or Employment Authorization Document (EAD). Authorization does not expire (though the documentation may need to be renewed).

Asylees

Asylees are individuals who have been granted asylum in the United States — similar to refugees but typically applying after already being present in the United States. Asylees have work authorization and can apply for lawful permanent residence after one year.

Work authorization: Form I-94 with "A3" or "A5" notation, or Employment Authorization Document.

TPS Holders

Temporary Protected Status (TPS) is a designation the U.S. government grants to nationals of countries experiencing ongoing armed conflict, environmental disasters, or other extraordinary conditions. TPS holders have work authorization for the duration of their TPS designation, which is periodically renewed by the government. There are currently approximately 500,000–600,000 TPS holders in the United States from countries including El Salvador, Honduras, Haiti, Venezuela, Ukraine, and others.

Work authorization: Employment Authorization Document showing TPS designation. Work authorization is tied to ongoing TPS designation, which must be periodically renewed.

Why Employers Often Exclude TPS Holders

TPS holders' work authorization is subject to renewal, which may lead employers to view them as having "temporary" or uncertain authorization. This concern is understandable but not a legal justification for exclusion.

The appropriate response to TPS reverification requirements is to:

1. Hire TPS holders on the same terms as other employees
2. Track EAD expiration dates
3. Complete reverification when work authorization documents expire, using Form I-9 Section B procedures
4. Update records when TPS holders present renewed documentation

Excluding TPS holders because managing their reverification is more complex than managing permanent residents' I-9 records is discriminatory — and, as the Jonal Laboratories case establishes, is exactly the type of "over-restriction" that the DOJ enforces against.

Settlement Terms

The Jonal Laboratories settlement focused on remediation rather than financial penalty:

Policy revision: Jonal Laboratories must revise its employment policies to eliminate restrictions limiting positions to U.S. citizens and LPRs only, unless specific positions have legally documented requirements for those restrictions.

Anti-discrimination training: All staff involved in hiring, recruiting, and HR must receive training on § 1324b protections, the full categories of work-authorized individuals who cannot be excluded, and the narrow exceptions for legally justified citizenship restrictions.

Job posting review: All job postings and internal job descriptions that contain "U.S. citizens and permanent residents only" or similar language must be reviewed and revised.

DOJ monitoring: The IER Section retains oversight of Jonal Laboratories' compliance with the settlement during the monitoring period.

Comparison with Other Over-Restriction Enforcement

Jonal Laboratories is not alone in facing enforcement for over-restriction violations. The DOJ has historically pursued cases where employers exclude work-authorized individuals based on overbroad citizenship requirements:

The Jonal Laboratories case joins a line of enforcement actions establishing that over-restriction is as much a § 1324b violation as under-restriction (H-1B preference).

How to Audit Your Citizenship Requirements

Step 1: Inventory All Citizenship-Status Requirements

Pull every job posting, internal job description, and application that includes any reference to citizenship status, visa status, or work authorization type. Look for:

• "Must be a U.S. citizen"
• "U.S. citizen or permanent resident only"
• "Citizens, nationals, and permanent residents only"
• "Must have permanent work authorization" (which may exclude TPS holders)
• "No time-limited work authorizations"

Step 2: Identify the Legal Basis (If Any)

For each identified restriction, document the specific legal authority that justifies it:

• If it's a security clearance requirement, identify the specific clearance level, the specific position, and the legal authority requiring citizenship
• If it's a government contract requirement, identify the specific contract provision
• If you cannot identify a specific legal authority, the restriction likely violates § 1324b

Step 3: Revise Non-Compliant Postings

Remove citizenship-status restrictions that lack a specific legal basis. Replace "must be a U.S. citizen or LPR" with "must be authorized to work in the United States" — the statement that is universally applicable to all work-authorized individuals without discriminating by citizenship status.

Step 4: Train Hiring Managers

Many "citizens and LPRs only" restrictions originate with hiring managers who impose them during the job description creation process — not with HR policy. Ensure hiring managers understand that they cannot add citizenship restrictions without HR and legal review.

Frequently Asked Questions

Is it ever legal to hire only U.S. citizens?

Yes, in narrow circumstances where a specific law, regulation, or government contract requires U.S. citizenship for the specific position. Examples include certain classified government positions, roles requiring specific security clearances, and some federal contractor positions covered by applicable regulations. These exceptions require specific documented legal authority — employer preference is not sufficient.

Can we limit hiring to candidates with permanent work authorization?

Excluding candidates without permanent work authorization (i.e., excluding TPS holders, asylees, and refugees who have time-limited documentation) generally violates § 1324b because it excludes protected individuals without legal justification. You can and should verify work authorization through Form I-9 — but verification is different from exclusion.

What language should we use instead of "citizens and permanent residents only"?

Use: "Must be authorized to work in the United States." This language accurately describes the legal requirement (work authorization) without unlawfully excluding refugees, asylees, or TPS holders. Do not add qualifiers like "on a permanent basis" or "without restrictions" that would effectively exclude time-limited work authorizations.

How do we handle I-9 reverification for TPS holders when their EAD expires?

TPS holders' EADs expire and are renewed when TPS is extended. When a TPS holder's EAD approaches expiration, you should initiate reverification using Form I-9 Section B (or a new Form I-9). When the employee presents a renewed EAD, complete reverification. This is a standard I-9 process that applies to all time-limited work authorizations — it is not a reason to exclude TPS holders from employment.

Did Jonal Laboratories have to pay a civil penalty?

No civil penalty amount was publicly disclosed in the Jonal Laboratories settlement. The settlement focused on training and policy revision rather than financial penalties, which may reflect the company's cooperation with the investigation, the absence of evidence of systematic intentional discrimination, and/or the DOJ's discretion in structuring appropriate remedies for the specific facts.

Does this type of over-restriction violation commonly occur?

Yes. The "citizens and green card holders only" restriction is common in job postings across industries — particularly in job descriptions prepared by hiring managers who are not aware of § 1324b's full scope. It also appears in template-based job descriptions that have been in use for years without legal review. Employers who conduct a comprehensive job posting audit typically find this language appearing in significant numbers of postings.

Can we ask about immigration status during the interview process?

You can ask, after an offer has been made and accepted, whether the candidate will require visa sponsorship and whether they are authorized to work in the United States. You cannot ask about specific visa status, citizenship status, or immigration history as pre-offer screening questions. Asking "are you a U.S. citizen?" as an interview question is problematic — the appropriate question is "will you be able to provide documentation of your authorization to work in the United States?"

Key Takeaways

The Jonal Laboratories settlement establishes a principle that employers in every industry need to internalize: the protected class under § 1324b is broader than "citizens and green card holders." Refugees, asylees, and TPS holders are equally protected — and excluding them from employment opportunities without specific legal justification violates federal law.

"Citizens and LPRs only" is not a conservative compliance posture. It's discrimination against a federal protected class. Fix your job postings, train your hiring managers, and document any legitimate legal bases for citizenship restrictions before the DOJ comes looking.

EmployArmor scans job postings for over-restrictive citizenship requirements — including "citizens and green card holders only" language — and flags them alongside the more commonly audited H-1B preference violations. Our platform covers the full spectrum of § 1324b exposure. Get your free compliance assessment →

Last updated: March 2026. This content is for informational purposes only and does not constitute legal advice. Consult qualified employment and immigration counsel for guidance specific to your situation.