Ninth Circuit Rules That §1981 Prohibits Hiring Discrimination Based on U.S. Citizenship Status

July 31, 2024

What's New

The Civil Rights Act of 1866—commonly called Section 1981—not only protects against intentional race discrimination but also against hiring discrimination based on U.S. citizenship, the U.S. Court of Appeals for the Ninth Circuit held June 27, 2024, in Rajaram v. Meta Platforms.

Purushothaman Rajaram, a naturalized U.S. citizen, alleged that a prospective employer unlawfully refused to hire him and favored hiring nonimmigrant visa holders. The U.S. District Court for the Northern District of California ruled that U.S. citizens are not a protected class under Section 1981.

A split Ninth Circuit panel reversed, ruling that Rajaram can sue under Section 1981.

What It Means

Section 1981 provides that “all persons” within U.S. jurisdiction “shall have the same right … to make and enforce contracts” as “white citizens.” Section 1981 is a Civil War-era statute that has been applied to support claims of race discrimination. The Ninth Circuit panel found that Section 1981’s protections against citizenship discrimination extend to U.S. citizens when the favored class consists of nonimmigrant visa holders.

The Rajaram ruling conflicts with precedent from the Fifth Circuit, which held in 1986 that Section 1981 does not prohibit discrimination against U.S. citizens. It is difficult to predict how much impact the Ninth Circuit’s ruling will have, but it opens an avenue that plaintiffs could use when claiming they were denied jobs in favor of nonimmigrant visa holders.

What You Should Do

Employers should follow CWC as we cover future developments related to this ruling. CWC members can consult with CWC staff through MemberAssist at [email protected].

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