I got hired for a position which requires TS/SCI or just TS. Before I got hired, I had Secret clearance, and I have only U.S. citizenship. I worked with them for two weeks and now they are telling me I have to look for other employment because my spouse has dual citizenship and contact with her family from a different country. All of this information I provided to them prior to me starting the job and after accepting the offer. Even after exploring the option of renouncing citizenship from a foreign country for my spouse, they are firm on their decision because of the foreign contact part. While there is enough collateral work for me to do without the SCI clearance, the executives made their decision.
Is this legal? If so please explain or share any similar instances you had or heard of. Thank You.
P.S. I just got cleared for an interim TS after 2 weeks of submitting my SF86.