H-1B visa employees sue Meta after AI-led layoffs, Judge says harm is more than speculation

Published 21 July 2026 · tech

Meta is facing fresh legal scrutiny after four employees on company- work visas argued that layoffs could force them out of the US if they

Meta is facing fresh legal scrutiny after four employees on company- work visas argued that layoffs could force them out of the US if they fail to find a new employer within the limited grace period. While a federal judge declined to temporarily block Meta's expansive layoff plan, he acknowledged that the immigration risks faced by these workers deserved closer examination. Read Full Story The lawsuit is part of a wider legal challenge brought by 26 current and former Meta employees, who allege that the company relied on AI systems to help decide who would be laid off. Many of the plaintiffs claim they were on maternity leave, medical leave or had disability accommodations when they were selected. In an order issued on July 17, US District Judge William Orrick denied the workers' request for a temporary restraining order that would have halted the layoffs.

However, he carved out one exception for the four plaintiffs whose employment visas are by Meta. The judge wrote that the immigration consequences for these workers are "more than speculation." According to the court filing, once their employment ends, they could have as little as a 60-day grace period to secure another employer willing to sponsor their visa or risk losing their legal status in the United States. As a result, Judge Orrick directed Meta to explain "how and why the four Doe plaintiffs with Meta- employment visas... were selected for termination" by July 23. The four employees are identified in court documents as Does 4, 9, 15 and 26. The court noted that while losses such as pay, stock awards or health insurance can potentially be compensated later through arbitration, the immigration consequences for visa holders present a different kind of harm that cannot be easily reversed.

Employees allege AI influenced layoff decisions According to Guardian, the broader lawsuit, filed in the Northern District of California, alleges that Meta used a network of internal AI tools to rank employees during this year's workforce reduction, which affected roughly 8,000 workers. According to the complaint, the company used AI-generated performance scores along with workplace activity data—including productivity metrics and other internal signals—to determine which employees would be included in the layoffs. The plaintiffs argue that this process unfairly disadvantaged workers who were on protected leave because they naturally generated less workplace activity during that period. One employee says she was informed of her layoff just two days before giving birth while on approved pregnancy leave. Another engineer claims his performance rating dropped after taking time off to recover from an injury, while a manager says he was laid off just over two weeks into medical leave.