Us Suspends Microsoft, Adobe And It Firms From Green Card Process

The Labor Department says it will halt permanent labor certification applications involving several tech companies while investigating alleged misuse of a program used by skilled foreign workers.

The Trump administration has suspended Microsoft, Adobe and several IT services companies from a U.S. labor certification program that helps skilled foreign workers seek green cards. Labor Secretary Keith Sonderling said the government would stop accepting new applications and processing pending ones involving the companies, according to Engadget. Officials allege misuse of the program; the reports do not establish that the companies committed fraud.

Table of Contents
  1. Which companies are affected?
  2. How the program works
  3. What workers and employers may face
  4. Sources

Which companies are affected?

TechCrunch and Engadget identify Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini as affected companies. WIRED names Microsoft, Adobe, Cognizant, Infosys and Tata in its account of the announcement.

Vice President JD Vance singled out Microsoft, alleging that it had used the system to favor foreign workers over Americans. Engadget reported his allegation that companies had inadequately advertised jobs to domestic applicants. Sonderling said the Labor Department was investigating whether the companies had committed fraud, according to WIRED.

How the program works

The action concerns permanent labor certification, known as PERM, rather than a general suspension of H-1B visas. WIRED describes PERM as a key step for H-1B holders seeking permanent residency: employers must demonstrate that suitable American workers are not available for the permanent job opportunity. WIRED said it was unclear whether the announcement would affect employees’ ability to apply for H-1B visas and that it had sought clarification from the government.

Microsoft disputed the implication that its visa filings displaced U.S. workers. In statements reported by Engadget and TechCrunch, the company said most of its U.S. employees are Americans. It said 80 percent of the approximately 6,000 H-1B applications it submitted in the last fiscal year were for extensions or changes of status for existing employees, not new hires. Its remaining filings for new employees involved people already legally in the United States and amounted to 1 percent of its U.S. workforce, Microsoft said. The company said it files H-1B petitions only for people who meet the visa category’s standards and looks forward to providing officials with more information. Adobe did not immediately respond to requests for comment reported by WIRED and TechCrunch.

What workers and employers may face

For affected employers and foreign workers pursuing permanent residency through them, the immediate issue is the halt to new and pending labor certification applications described by Engadget. The reports do not say how long the suspension will last or resolve its effect on separate H-1B applications.

WIRED reported that Jobs Now, a group of U.S. tech workers that has complained about alleged PERM abuses, welcomed the announcement. The administration also said it would investigate nine universities over alleged misuse of the J-1 program, according to all three outlets. None of the reports identifies a specific effect on hiring or candidates in Israel.

Sources

This story was compiled by AI from the reports below. Read the originals for the full details.