DOJ Expands Whistleblower Rewards to Include Immigration Violations

Since May 12, when the U.S. Department of Justice (DOJ) announced policy changes to the Corporate Whistleblower Awards Pilot Program (CWAP), employers now face increased scrutiny and potential risks due to the DOJ’s recent expansion of CWAP. Launched last year by the Biden Administration, the program initially focused on financial crimes and corruption. The Trump Administration has expanded the enforcement reach of the program, adding employment-based immigration law violations to the list of offenses eligible for fines and prosecution—significantly raising the stakes for businesses. 

Under the expanded CWAP, employees have incentives to report federal immigration violations within their companies to DOJ. If a successful prosecution results from a report to DOJ, the whistleblowers can receive a percentage of the net cash proceeds of any forfeiture awarded by the court.

Expanding the program to include immigration law violations could lead to an uptick in whistleblower activity, fueled by the financial incentives offered by the federal government. 

Specifically, this development will change the legal landscape for employers who rely on immigrant labor, as it opens the door for reporting that could lead to significant legal and financial consequences.

How Much Can Whistleblowers Receive

The CWAP program awards whistleblowers up to 30% of the first $100 million in net proceeds forfeited by corporations that are successfully prosecuted for crimes like unlawful hiring. Amounts above that—up to $500 million—may entitle a whistleblower to 5% of net proceeds.  

Awards are also available to whistleblowers who report federal immigration violations that result in forfeitures at lower thresholds.  For the first $10 million in net proceeds forfeited by businesses, the DOJ will apply a presumption in favor of awarding a whistleblower the maximum 30 % of such proceeds.

DOJ will calculate potential awards based on the “net proceeds forfeited”—the value of any assets  it forfeits after compensating eligible individual victims and paying other costs associated with the forfeiture. The agency will assess what percentage to pay the whistleblower based on various factors, including the usefulness of the whistleblower’s information and the level of assistance provided, with any awards made in DOJ’s discretion.

What Does This Mean for Businesses

By prioritizing compliance programs and maintaining comprehensive immigration records, businesses can better navigate the challenges posed by this expanded whistleblower program.

Here are five proactive steps employers can take now to reduce enforcement risk under the updated rules:

• Conduct a Form I-9 audit to identify and correct errors.
  Proactively reviewing and updating I-9 records helps minimize compliance risks and demonstrates good faith efforts to meet legal obligations.
• Establish clear hiring policies that ensure employment eligibility.
  Adopt procedures that confirm all employees are authorized to work in the United States and apply them consistently across your organization.
• Train HR personnel on accurate and timely Form I-9 completion.
  Provide regular training to ensure those responsible for onboarding understand the requirements and avoid common mistakes.
• Implement an internal reporting policy for immigration-related concerns.
  Foster a workplace culture that encourages employees to report suspected violations without fear of retaliation.
• Recognize whistleblower protections and incentives.
  Understand that employees are now incentivized to report immigration-related violations and are legally protected from retaliation for doing so.

Employers should also keep in mind DOJ’s Corporate Enforcement and Voluntary Disclosure Program provides a potential safe harbor for companies that voluntarily investigate and disclose misconduct. To qualify, disclosure must occur within 120 days of an employer’s receipt of an internal whistleblower report—making timely and deliberate action essential.

Please contact Brandon Davis or any member of the Phelps Immigration and White Collar Defense and Investigations teams if you have questions or need advice or guidance