US suspends Microsoft, major IT firms from green card programme

What has the US government suspended Microsoft, Adobe, and several other IT companies from doing?

The government has suspended Microsoft, Adobe, and several large IT firms from a route used to seek permanent residency for skilled foreign workers. The action targets the PERM labour-certification stage, not every immigration route. Officials say it matters because employers must first show that no qualified American is available, while the administration wants firms to hire more US workers.

Microsoft is the clearest example. Vice-President J.D. Vance said it laid off 6,000 American workers last year, yet obtained 6,300 H-1B visas and almost 3,000 green cards. He accused companies of advertising jobs in ways that produce few responses, then using that result to support foreign hiring.

Labour Secretary Keith Sonderling said the government will not accept new or process pending permanent labour-certification applications involving the named firms. The list includes Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. Microsoft had not responded when reported.

What is the PERM process, and how does it connect to employment-based green cards?

PERM is the Department of Labour process for certifying that a specific job cannot be filled by a qualified, willing, and available US worker. Employers must seek that certification before filing petitions for most employment-based green cards. It is therefore a screening step between recruiting for a job and seeking permanent residency for a foreign worker.

The article describes employers advertising positions in the United States before applying. Officials allege that some companies place advertisements where few people will see them, then point to the lack of responses as evidence that American workers are unavailable. That alleged practice is central to the government’s fraud concerns.

The current suspension blocks new applications and leaves pending applications unprocessed for the named firms. This matters because companies cannot move those cases through the stated certification stage. The article does not say how long the suspension will last or whether every application will ultimately be rejected.

How large is the affected group of companies and workers, including Microsoft’s reported 6,300 H-1B visas and nearly 3,000 green cards?

The affected corporate group includes at least eight named companies: Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. The article also describes them as several large IT firms, so it does not establish the complete number of companies involved. It likewise gives no combined total for foreign or American workers affected.

Microsoft provides the main scale figures. Vance said the company laid off 6,000 American workers last year, obtained 6,300 H-1B visas, and received almost 3,000 green cards. Those figures describe Microsoft’s reported activity, not the entire group’s totals. H-1B visas and green cards are also different immigration categories.

The government said it would stop accepting new or processing pending permanent labour-certification applications involving these companies. That identifies the cases directly affected, but the article does not say how many applications are pending. The available figures therefore show the issue’s size at Microsoft, not a complete workforce count.

What allegations led officials to stop processing new and pending permanent labor-certification applications for these companies?

Officials say the applications were halted because of alleged fraud in the process used to prove that American workers are unavailable. The accusation is not simply that companies hired foreign workers. It is that some employers may have created a weak or misleading search for US applicants before seeking permanent labour certification.

Vance gave a specific example. He said companies might place an advertisement in a small-town newspaper, receive little or no response, and then use that result to support hiring a foreign worker. He described those workers as effectively foreign indentured servants and said Microsoft had used the system more than any other US company.

Sonderling said the government would not accept new or process pending applications involving the named firms. The article does not report a final finding of wrongdoing or penalties. It reports an investigation and suspension based on officials’ allegations, while Microsoft had not immediately responded to a comment request.

What could happen to companies, foreign workers, and American workers if these applications remain suspended?

If the suspension continues, the named companies cannot move new or pending permanent labour-certification applications through the Department of Labour under the stated policy. That could delay affected foreign workers’ progress toward employment-based green cards. The article does not say whether workers would lose jobs, visas, or existing immigration status.

Companies would also face a direct staffing constraint. They could not rely on the suspended certification applications to support the affected permanent-residency route. Microsoft’s reported combination of layoffs, H-1B visas, and green cards explains why officials are using the company as a prominent example in the dispute.

For American workers, the administration says the goal is stronger hiring by US companies. Vance argued that firms should hire “great American workers,” while officials investigate alleged misuse. The article gives no evidence yet that the suspension has produced more American jobs, and it does not state how long the action will last.

How are H-1B visas different from employment-based green cards, and why might a company use both systems?

H-1B visas and employment-based green cards serve different purposes. In general, an H-1B is a temporary work-authorisation route for a skilled foreign worker, while a green card provides permanent residency. The article reports Microsoft’s use of both systems, but it does not explain their full legal rules. This distinction is based on established immigration knowledge.

A company might use an H-1B visa to employ a worker while seeking a longer-term solution through the PERM process. PERM is required before petitions for most employment-based green cards. That means the two systems can appear in the same worker’s broader employment and immigration pathway, even though they are not the same document.

Microsoft reportedly obtained 6,300 H-1B visas and almost 3,000 green cards after laying off 6,000 American workers. The figures helped officials make their case about hiring practices. The suspension described in the article directly concerns permanent labour-certification applications, not a stated suspension of every H-1B visa.

Why do US immigration rules require employers to show that no qualified, willing, and available American worker can fill a particular job before sponsoring many foreign workers for permanent residency?

The requirement creates a labour-market check before many employers can sponsor a foreign worker for permanent residency. Employers must show that no qualified, willing, and available US worker can fill the particular position. The stated purpose is to ensure that permanent-residency sponsorship responds to a genuine staffing need rather than replacing an available American worker.

The article says employers must advertise jobs in the United States before applying to the Department of Labour. Officials allege that some companies use small-town newspaper advertisements or other weak searches, then treat the lack of responses as proof that Americans are unavailable. That alleged shortcut is why the government describes the issue as fraud.

The rule matters to both workers and companies. It is intended to protect American wages and job opportunities while allowing employers to seek foreign workers when they cannot find suitable US applicants. Officials are now investigating whether the system was abused, but the article does not report final findings for every company.

Key Facts:

📌 The suspension targets permanent labour-certification applications.

📌 Microsoft was accused of using the system more than any other US company.

📌 The policy is part of an effort to encourage American hiring.

📌 PERM requires certification from the Department of Labour.

📌 Employers must show no qualified US worker is available.

📌 PERM precedes most employment-based green-card petitions.

📌 At least eight companies are named in the suspension.