9th Circuit holds hiring discrimination based on U.S. citizenship prohibited under 42 U.S.C. Section 1981: Rajaram v. Meta Platforms, Inc.

In Rajaram v. Meta Platforms, Inc., (9th Cir.)           F.3d           (Jun. 28, 2024), the Court of Appeals for the Ninth Circuit held 2-1 that 42 U.S.C. § 1981 prohibits employers from discriminating against job applicants based on their U.S. citizenship.

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Plaintiff, a naturalized U.S. citizen, applied for several jobs with Defendant and was rejected each time. He filed a putative class action alleging that Defendant prefers to hire noncitizens with H-1B visas because it can pay them lower wages. The district court dismissed the complaint, ruling that § 1981 does not prohibit citizenship-based discrimination.

On appeal, the Ninth Circuit reversed and remanded. It rejected Defendant’s argument that § 1981 merely establishes a floor for the rights of all persons and does not prohibit discrimination against U.S. citizens. Relying in part on McDonald v. Santa Fe Trail Transportation Co. (1976) 427 U.S. 273, the court held that § 1981’s plain language establishes parity between “all persons” and “citizens,” which is violated when some persons have greater or lesser rights than citizens. The court also declined to follow the Fifth Circuit’s holding in Chaiffetz v. Robertson Research Holding, Ltd. (5th Cir. 1986) 798 F.2d 731, stating that while alienage discrimination differs from racial discrimination, that difference is irrelevant to the text of § 1981.

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