In a May 2025 announcement, the U.S. Department of Justice (DOJ) expanded its corporate whistleblower program, increasing scrutiny on U.S. employers of noncitizens. The new policy forecasts a focus on noncitizens with H-1B or L-1 status and those who may have fallen out of immigration status.
The expanded policy warrants a proactive review and robust compliance measures to mitigate legal risks.
Immigration Violations Targeted by the DOJ
The announcement by the head of DOJ’s Criminal Division expanded the whistleblower program to prioritize the prosecution of immigration violations, among other subject matters. The expansion builds on a February 2025 memo of the Attorney General that prioritized immigration-related criminal cases, including violations under statutes such as 8 U.S.C. §§ 1304, 1306, and 1324–1328, which pertain to noncitizen registration, harboring or employing undocumented individuals, and related offenses.
Under the expanded program, DOJ is focusing on investigating and charging immigration violations by companies. Among the other new policies, U.S. Attorneys’ Offices now must provide quarterly reports to DOJ Headquarters on their immigration enforcement efforts. Specifically, the program now is likely to focus on:
- Employment of Unauthorized Workers: Knowingly hiring or continuing to employ individuals who are not authorized to work in the United States.
- Document Fraud: Engaging in or facilitating the use of fraudulent documents to employ unauthorized workers. The DOJ could consider charges under the False Claims Act and regulatory violations, in addition to seeking fines and debarment.
- Harboring Allegations: Investigating organizations, including staffing agencies and contractors, that are harboring or trafficking undocumented workers.
- Immigration Eligibility Misrepresentation: Misrepresenting the terms and conditions of employment of noncitizens working in H-1B and other employer-sponsored visa categories, or otherwise engaging in fraud to obtain an immigration benefit or otherwise evade legal requirements. Oversights, such as discrepancies during USCIS site visits or failure to provide requested documentation, could lead to criminal investigations.
- Labor Condition Noncompliance: Employing unauthorized workers in conditions contrary to Department of Labor regulations, including substandard wages and working hours.
- Noncompliance with Other Immigration Regulations: Failing to adhere to immigration-related employment verification requirements, such as the I-9 process, is often the easiest way for the government to quickly open up an investigation, identify issues within a company’s workforce, pursue employer sanctions—all while identifying and referring other potential regulatory violations to additional federal and state agencies.
Whistleblower Incentives and Eligibility
Individuals who provide original, truthful information leading to criminal or civil forfeiture exceeding $1 million may be eligible for awards under the program. Whistleblowers can receive up to 30% of the first $100 million in net proceeds forfeited and up to 5% of net proceeds between $100 million and $500 million.
Implications of DOJ’s Strategic Updates
DOJ’s expansion of the whistleblower program underscores the government’s strategic emphasis on immigration enforcement in the corporate sector. DOJ now may leverage its whistleblower program, in addition to False Claims Act qui tam actions and regulatory procedures, to pursue charges of untruthfulness against companies. Under another whistleblower program last year, the SEC awarded hundreds of millions of dollars.
The expanded program incentivizes whistleblowers with potentially substantial financial rewards, in line with broader immigration enforcement efforts.
What Should Companies Do?
To stay ahead of the curve, employers should consider the appropriate risk assessments of their immigration and employment eligibility verification programs. Measures include:
- Internal reviews of policies and procedures for deciding what roles a company may or may not sponsor noncitizens for employment-based visas;
- Evaluations of wages offered to US workers as compared to noncitizens to ensure parity, including those roles supported by third-party contractors;
- Stress-testing that representations made to US government authorities are accurate—both by the company and its employees—in filings and at government interviews;
- Assessment of protocols for reviewing whistleblower claims involving allegations of unlawful employment and preferential treatment in the hiring, promotion, or termination processes; and
- Training HR, Legal, Security, business leaders, and employees relating to the importance of coordination and accuracy when government site visits occur or questions surface.
Importantly, in light of the DOJ’s focus on employment eligibility verification (Form I-9), companies should consider internal audits of Form I-9 records to ensure that each form is properly completed, signed, and dated, and that no forms contain discrepancies or missing information. Companies also should confirm that Human Resources is well-trained in I-9 verification, including accurately completing and retaining I-9 forms, taking corrective action when necessary and lawful, and avoiding discrimination based on citizenship or national origin. Moreover, onboarding professionals in HR should have resources and training on common fraudulent documents utilized in their geographical areas and on weeding out those whose identities are questionable—in order to avoid inadvertently employing someone without lawful authorization to work. They also need to understand clearly what they should do in evaluating a tip from the public, from law enforcement, or from another employee involving allegations that someone who works at the company is unauthorized.
Employers also should weigh the risks and benefits of enrolling in E-Verify, particularly as the government signals a push to expand E-Verify enrollment, to assist the employer in validating an employee’s identity and authorization to work in the United States. While enrollment in E-Verify does not provide employers with a safe harbor from employer sanctions, it offers evidence of the employers’ good-faith attempts to maintain a lawfully-authorized workforce and diminishes the perception of an intent to defraud the government when unauthorized workers are identified in a workforce. IMAGE also may be a program that certain employers should consider participation in, if they are in an industry that is perceived as having a high risk of the employment of unauthorized workers, such as food and beverage, meatpacking, agriculture, hospitality, and manufacturing.
With the new Administration, companies also should consider that DOJ may focus employment discrimination investigations on allegations of companies favoring noncitizens over U.S. citizen workers. For example, the first Trump administration advanced novel legal arguments that employers structured permanent resident PERM labor certification programs in a way that disfavored U.S. worker hiring. Companies should ensure that PERM programs mirror normal recruiting protocols, as to minimum requirements for green-card-sponsorship, advertising protocols, and evaluation of applicants who apply for advertisements. These are critical steps in protecting a company from investigation, employer sanctions, and the reputational harm that comes from DOJ investigations.
If you have any questions or concerns, please reach out to the Worksite Compliance Team at Klasko Immigration Law Partners.
The material contained in this alert does not constitute direct legal advice and is for informational purposes only. An attorney-client relationship is not presumed or intended by receipt or review of this presentation. The information provided should never replace informed counsel when specific immigration-related guidance is needed.
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