Tech Layoffs and Visa Overstays
The tech sector’s recent turbulence adds another layer of complexity. Since 2022, over 48,900 jobs have been cut in the Bay Area alone, with companies like Meta (5,195 layoffs), Tesla (3,652), and Amazon (57 in Milpitas) slashing workforces. These layoffs have left many H-1B visa holders in limbo, as their legal status is tied to employment. Some, unable to secure new jobs within the 60-day grace period, may overstay their visas, creating a shadow workforce vulnerable to exploitation—and now, to whistleblower scrutiny.
The DOJ’s program incentivizes insiders to report such cases, potentially exposing companies to criminal charges, fines up to $500,000 per count, and asset forfeiture. For tech giants, the reputational damage from a DOJ raid could be catastrophic, as Thomas notes: “Being raided and hit with criminal charges can debilitate business operations and result in long-term reputational damage.”
Corporate Responses and Compliance Challenges
The DOJ’s program encourages internal reporting by offering higher awards to whistleblowers who first report misconduct to their employers and cooperate with internal investigations. However, companies have just 120 days from receiving an internal report to self-disclose to the DOJ to qualify for a presumption of declination under the Corporate Enforcement and Voluntary Self-Disclosure Policy. This tight timeline pressures tech firms to bolster compliance programs and swiftly investigate allegations.
