The Labor Department on Thursday suspended Microsoft, Adobe and six IT outsourcing firms from PERM, the labor certification that starts most employer-sponsored green cards. The six are Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. Labor Secretary Keith Sonderling said the department will not accept new applications from the eight companies or process pending ones. Vice President JD Vance announced the step at the White House.
For now, the suspension decides whether foreign workers at eight large employers can move toward permanent residence, and it tests how far the executive branch can act against named companies.
The step follows a Sept. 18 executive order that tells agencies to weigh an employer's layoffs when it seeks H-1B workers. On Sept. 30 a federal judge in California blocked the administration's $100,000 H-1B fee, finding agencies likely skipped required notice and comment. The Labor Department is also drafting a rule to rewrite PERM's test of the U.S. job market. Vance also said nine universities, including Harvard, Yale and Stanford, will be investigated over a foreign-student program, TechCrunch reported.
- USCIS data show Microsoft received 6,258 H-1B approvals last fiscal year.
- The Labor Department counted 3,157 PERM filings by Microsoft that year.
- Approved visas and green cards are not canceled, SHRM reported.
Sonderling's department runs PERM, and Vance made the case for the suspensions. Microsoft said about 80 percent of its roughly 6,000 H-1B filings last year extended or changed status for current staff, and that new hires equal about 1 percent of its U.S. workforce. Foreign workers waiting on green cards at the eight firms and American tech workers who compete for the same jobs feel the effect.
Disputedwhether the suspensions punish fraud and protect American workers, and whether the Labor Department has the power to impose them.
The FramingsAdministration framing (Vance; Sonderling) holds that Microsoft laid off 6,000 American workers last year while benefiting from 6,300 H-1B visas, and that each laid-off worker was replaced with "one and a half foreign indentured servants." Company framing (Microsoft) holds that it pays H-1B workers the same as others in comparable jobs and that most of its U.S. employees are American. Restriction-advocate framing (Jeremy Beck, NumbersUSA) praises the step but says only Congress can remove the financial pull toward guest workers. Legal-limits framing (David Bier, Cato Institute) holds that the department lacks grounds to suspend a company it has not proven broke the rules. Worker-mobility framing (Doug Rand, a former DHS official) holds that blocking green cards leaves H-1B workers more tied to their employers, not less.
The RecordThe eight names and the halt on pending applications are in the department's announcement as Newsweek and TechCrunch reported it. Vance's 6,300 figure and Microsoft's "roughly 6,000" differ; USCIS data show 6,258 approvals. The administration has not published a fraud finding against any of the eight. Confidence in the suspension's terms: high. Confidence in how long it lasts: low, since no end date was given.
What to watch: Any court challenge by the suspended companies. The Labor Department's proposed PERM rule, now under White House budget-office review.
Sources: Newsweek, SHRM, TechCrunch, The Center Square, The Daily Caller
