Facebook Fined 16.9 Billion KRW for Reverse Discrimination Against Americans After Hiring Foreign Workers

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Facebook, the world's largest social media (SNS) company, has been fined a large sum for allegedly discriminating against American workers by employing foreign laborers.

According to Bloomberg and other foreign media on the 19th (local time), Facebook agreed to pay a total of $14.3 million (approximately 16.9 billion KRW) to the U.S. Department of Justice and the Department of Labor in connection with federal government charges that it discriminated against domestic workers by employing thousands of foreign workers.

Of this amount, $4.75 million will be paid to the government as a fine, and an additional $9.5 million will be allocated for potential victims.

The Washington Post (WP) reported that this is the largest settlement under anti-discrimination provisions.

Facebook also reached a separate agreement with the Department of Labor to hire more Americans in technical professional positions and to undergo federal government investigations for three years.

Kristen Clarke, Deputy Attorney General of the Department of Justice, stated, "Facebook is not above the law and must comply with federal laws prohibiting discrimination in employment."

In an email statement, Facebook said, "We believed we met federal standards, but we have reached a settlement to resolve the lawsuit and will move forward."

Previously, the Trump administration, which had maintained a long-standing tense relationship with Facebook, filed an administrative lawsuit in December last year, alleging that Facebook discriminated against American workers by employing foreigners in high-paying jobs.

At that time, the Department of Justice claimed in a 17-page complaint that Facebook created separate hiring procedures for foreign technical workers holding specific visas such as the H-1B professional employment visa and sponsored them to obtain permanent residency (green cards).

The Department of Justice pointed out that Facebook hired foreigners instead of qualified American workers for more than 2,600 jobs using this method, and these workers received an average annual salary of $156,000.

The WP noted that while the fine itself may not significantly harm the IT giant Facebook, the tightening government regulations could pose a threat in themselves.

Facebook is currently involved in an antitrust lawsuit with the federal government, and voices are growing in the U.S. Congress calling for stronger legal regulations against unfair practices by IT giants including Facebook.