The U.S. Department of Labor has suspended Microsoft, Adobe, and six IT outsourcing firms from the PERM program, the main route employers use to sponsor foreign workers for employment-based green cards.
The suspension covers Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. Vice President JD Vance announced it on October 8, accusing the companies of misusing PERM, which requires employers to show that no qualified U.S. workers are available before they sponsor a foreign worker. Labor Secretary Keith Sonderling said the Microsoft and Adobe suspensions relate to active federal investigations. The department will not accept new applications from these companies or process their pending ones. Vance said Microsoft laid off 6,000 U.S. workers last year while receiving about 6,300 H-1B approvals and almost 3,000 green cards. Microsoft responded that the vast majority of its U.S. employees are Americans, that 80% of its H-1B filings were extensions or status changes for existing staff, and that it pays H-1B employees the same as colleagues doing comparable work.
The suspension does not affect H-1B visas, and green cards already issued remain valid, so current H-1B workers at these companies can keep their jobs. Their employers, however, cannot start or continue the green card process for them through PERM. Other immigration routes, including L-1 intracompany transfers and O-1 visas, were not mentioned in the announcement.
IAM Member Impact: For now, current assignees at the eight companies stay where they are. However, employees whose path to permanent residence is now on hold may choose to transfer abroad or leave for employers in other countries, which could lead to more outbound U.S. moves and repatriations over the coming months.
Source: NBC News