DOJ Settles Suit Involving Misunderstood ITAR Requirements for Staffing

The Justice Department settled its lawsuit with Chancery Staffing Solutions over claims of improper screening of non-U.S. citizens, the DOJ said in a Feb. 18 news release. The suit involved allegations that “the staffing company violated the Immigration and Nationality Act (INA) when, at a law firm client’s directive, it screened out work authorized non-U.S. citizens and U.S. citizens with dual citizenship from a document review project without a lawful basis.”

The DOJ previously found that the law firm's “request was based on a misunderstanding of the requirements of the International Traffic in Arms Regulations,” the DOJ said. “Had Chancery Staffing independently assessed the basis for the client’s directive, this instance of citizenship status discrimination may have been avoided.”

The settlement includes a $27,000 civil penalty and requires that the company implement new policies. Among other things, Chancery's employment policy must make clear that ITAR doesn't require hiring of only U.S. citizens and “that the ITAR does not impose requirements on U.S. companies concerning the recruitment, selection, employment, promotion, or retention of foreign persons,” it said. “Instead, the ITAR requires that employers obtain prior authorization from the State Department if foreign-person employees’ positions require access to information governed by the ITAR.”