Meta ordered to explain layoff decisions involving visa holders amid AI discrimination claims

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US District Judge William Orrick has ordered Meta to explain exactly how it chose to terminate four company-sponsored visa holders, giving the tech giant until July 23 to lay out the decision-making process. The order comes amid allegations that Meta used AI tools to make layoff decisions that disproportionately harmed workers on protected leave.

The ticking clock for visa holders

The layoffs affecting the plaintiffs are set to take effect around July 22, 2026. For workers on H-1B and similar visas, that date triggers a 60-day grace period to find a new employer willing to sponsor their visa, or face removal from the US.

Judge Orrick acknowledged the “unique risk” faced by the four visa holders, noting the potential for irreparable harm that goes well beyond financial losses. Despite recognizing that urgency, the court did not impose a temporary restraining order to halt Meta’s broader layoff process. The reduction of approximately 8,000 positions is already underway and proceeding as planned.

AI in the crosshairs

The lawsuit was filed on July 13 by 26 current and former Meta employees. Their core allegation: that automated AI tools tied to performance evaluation, including performance-ranking systems and activity metrics, unfairly discriminated against workers on protected medical, family, or pregnancy leave.

Meta has pushed back firmly. The company denied the allegations, stating that its workforce decisions were made by human management rather than AI technologies. In a public response, Meta said, “These claims lack merit… the changes we are implementing vary by team.”

Judge Orrick’s order doesn’t resolve anything yet. It simply demands transparency: show your work. Meta has until July 23 to do exactly that.

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