Meta faces trial claiming it prefers foreign workers to US citizens. Reuters

Daniel Wiessner

(Reuters) – A U.S. appeals court on Thursday revived a class action lawsuit proposed by a software engineer, alleging that Meta Platforms (NASDAQ:) refused to hire him because it preferred to offer jobs to foreign workers who receive lower wages.

The San Francisco-based 9th U.S. Circuit Court of Appeals said in a 2-1 ruling that a Civil War-era law prohibiting discrimination in contracts based on “alienation” leads to prejudice against U.S. citizens.

The decision overturns a California federal judge’s decision to dismiss a lawsuit by Purushothaman Rajaram, a naturalized U.S. citizen, who claims Meta is diverting American workers in favor of cheaper visas. Rajaram seeks to represent a class that includes thousands of workers.

Meta, the owner of Facebook, Instagram and WhatsApp, and Rajaram’s lawyers did not immediately respond to requests for comment. In a lawsuit, the company denied wrongdoing and said Rajaram failed to show that Meta intended to discriminate against American workers.

The 9th Circuit court has never before addressed the question of whether federal law, Section 1981 of the Civil Rights Act of 1866, provides U.S. citizens protections against employment discrimination.

The only other appellate court to do so, the New Orleans-based Fifth Circuit, held that the law did not apply to U.S. citizens in a 1986 decision. The 9th Circuit’s split on Thursday increases the chances that the case will be heard by the U.S. Supreme Court if Meta appeals.