US Suspends Microsoft and Seven Other Firms from Green Card Programme
The US government has suspended Microsoft and seven other technology companies from a federal programme that lets employers sponsor foreign workers for green cards. The affected firms include Adobe, Capgemini, Cognizant, HCL, Infosys, Tata, and Wipro, as reported by Reuters.
Vice President JD Vance announced the decision at the White House on Thursday, accusing the companies of fraud. Labor Secretary Keith Sonderling stated that new applications from these eight companies will be halted, and pending applications will not be processed.
This suspension targets the Permanent Labor Certification Program (PERM), run by the Department of Labor, which is typically the initial step in obtaining a green card through employment. Employers must demonstrate that no qualified American worker is available for the job.
However, the H-1B visa program for skilled foreign workers remains unaffected, and currently held green cards will remain valid. This means H-1B workers at these companies can retain their jobs, but their employers cannot initiate a green card process through PERM.
The officials have not specified the duration of the suspension. JD Vance particularly singled out Microsoft, noting that the company let go of 6,000 American workers last year while being approved for over 6,000 H-1B visas. He claimed that for every worker Microsoft laid off, they hired "one and a half foreign indentured servants."
Microsoft disputed this affirmation, stating that most of its US employees are Americans. They also clarified that approximately 80% of their roughly 6,000 H-1B applications last year were for individuals already employed at the company.
This move is part of a broader crackdown on work visas, with Cognizant already suspended from PERM in September, as mentioned by the Labor Department’s inspector general, Anthony D'Esposito.
Additionally, JD Vance announced that the administration will investigate nine universities, including Harvard, Yale, and Stanford, over alleged misuse of a program that brings foreign students to the US.
Moreover, Microsoft did not sign the White House’s AI safety accord last month, although its CEO Satya Nadella attended the event where the agreement was made.
Story by Ana-Maria Stanciuc, Editor-in-Chief at TNW.