US bars Microsoft, Adobe, and major IT firms from green card program for skilled foreign workers

What does it mean for the government to suspend these companies from the program, and which companies are affected?

Suspension means the Labor Department will not accept new or pending permanent labor certification applications involving the named companies. This certification is part of the employer-sponsored process that can support a skilled foreign worker’s path to permanent residency. The action does not mean every employee immediately loses a visa or job.

The affected companies are Microsoft, Adobe, Capgemini, Cognizant, HCL, Infosys, Tata, and Wipro. Secretary of Labor Keith Sonderling announced that applications involving these employers would be rejected or left unaccepted during the suspension. The administration has accused the companies of fraud.

The decision matters because technology companies are major users of skilled-worker immigration programs. Vice President JD Vance said Microsoft must hire “great American workers.” Microsoft responded that most of its U.S. employees are Americans and that 80% of its roughly 6,000 H-1B filings extended or changed existing employees’ status.

What is a permanent labor certification, and how does it help a skilled foreign worker obtain a U.S. green card?

A permanent labor certification, commonly called PERM, is a Department of Labor process used before an employer sponsors a foreign worker for permanent residence. The employer generally must show that it tested the U.S. labor market and could not find an available, qualified American worker for the position. It must also follow wage and recruitment rules.

Once approved, the certification supports the employer’s immigrant petition for the worker. The worker may then continue through the green-card process with U.S. immigration authorities. A certification is not itself a green card, and approval does not guarantee permanent residence. It is one important step in an employer-sponsored case.

The article identifies this program as a route that helps skilled foreign workers obtain permanent residency. The administration says the suspended companies committed fraud, while Microsoft says it follows rigorous H-1B standards and pays comparable employees equally. Those claims concern whether the system is being used properly.

How large is the H-1B program, and how concentrated is its use among technology companies and workers from India?

The article does not provide the total number of H-1B visas issued or approved annually. It does show that the program is heavily concentrated. Technology companies are among its largest users, and nearly three-quarters of approved H-1B visas go to workers from India, according to The Associated Press.

Microsoft supplied a company-level example. It said it submitted approximately 6,000 H-1B applications in the last fiscal year. About 80% extended or changed the status of existing Microsoft employees. The remaining filings covered new employees already legally in the United States and equaled 1% of Microsoft’s U.S. workforce.

These figures show why the dispute centers on technology employers and Indian workers. They do not measure the entire program, however. The article provides concentration figures and Microsoft’s filings, but no overall annual H-1B total. It also says H-1B visas target highly skilled jobs employers may struggle to fill with qualified U.S. workers.

What happens to new or pending green card applications involving these companies while the suspension is in effect?

While the suspension lasts, the Labor Department will not accept new or pending permanent labor certification applications involving Microsoft, Adobe, Capgemini, Cognizant, HCL, Infosys, Tata, or Wipro. This blocks a key employer step for workers seeking permanent residency through those companies.

The practical effect is a pause or barrier in affected green-card cases. A new application cannot move forward through this certification process. A pending application involving one of the companies also cannot be accepted under Secretary of Labor Keith Sonderling’s instruction. The article does not describe separate deadlines, appeals, or processing rules.

The suspension is distinct from an immediate cancellation of every H-1B visa. The article says H-1B visas are for highly skilled jobs, and Microsoft reported that most of its recent filings extended or changed current employees’ status. Whether individual workers face additional consequences is not specified. The administration’s stated reason is alleged fraud and concern about hiring American workers.

Why does the H-1B visa exist, and what conditions are supposed to justify hiring a foreign worker instead of a U.S. worker?

The H-1B program is designed for highly skilled positions that employers may struggle to fill with qualified U.S. workers. It gives companies a way to hire specialized talent when they say the domestic labor pool does not meet a position’s needs. Technology companies are among its largest users.

The key condition is that the employer should need skills it cannot readily obtain from qualified American workers. Employers must also follow the visa category’s requirements. Microsoft said it files only for people who meet the “rigorous standards” of the category. It also said H-1B employees receive the same pay as other employees doing comparable work.

That promise is central to the current dispute. The administration says companies should hire American workers and has accused several firms of fraud. Vance also alleged that some university programs were being used to undermine American wages. The article presents these as government allegations, not proven findings, and does not detail each company’s response.

How is an H-1B visa different from a green card, and what other immigration status can an H-1B worker have while waiting for permanent residency?

An H-1B visa and a green card serve different purposes. H-1B status allows a foreign worker to work temporarily in a qualifying specialized position for an employer. A green card grants permanent-resident status. The article describes H-1B visas as a work program and permanent labor certification as part of a route toward permanent residency.

A worker pursuing a green card can generally continue holding H-1B status while the permanent-residency case is pending, provided the worker remains eligible and the status is extended when required. In some circumstances, a worker may instead hold another lawful status, such as F-1 student status, but the article does not identify specific alternatives.

Microsoft’s figures illustrate why the distinction matters. It said 80% of about 6,000 H-1B filings extended or changed existing employees’ status. Those filings were not necessarily new arrivals. The suspension affects permanent labor certification applications, so it can disrupt a green-card path without automatically ending an employee’s H-1B status.

How do employer-sponsored immigration programs try to balance companies’ need for specialized talent with protections against lowering wages or displacing workers?

These programs aim to connect employers with specialized talent while protecting the domestic workforce. The H-1B framework is intended for highly skilled jobs that employers may struggle to fill with qualified U.S. workers. Permanent labor certification adds a labor-market review before many employer-sponsored green-card cases proceed.

The mechanism combines eligibility rules, employer filings, and wage protections. Employers are expected to show that the role and worker qualify, follow required labor-market procedures, and avoid using immigration sponsorship to undercut comparable American workers. Microsoft said its H-1B employees receive the same pay as other employees doing comparable work and meet rigorous standards.

The current controversy shows the balance can be disputed. The administration accuses several companies of fraud and says they must hire great American workers. It also says some university programs were used to undermine wages. The suspension and investigation are government actions, while the article does not report final findings against each company or university.

Key Facts:

📌 Eight technology companies were suspended from the permanent labor certification program.

📌 The affected companies include Microsoft, Adobe, Infosys, Tata, and Wipro.

📌 The Labor Department will not accept new or pending applications involving them.

📌 Permanent labor certification can support a skilled foreign worker’s path to permanent residency.

📌 It is an employer-sponsored step, not a green card itself.

📌 The administration accused suspended companies of fraud.

📌 Nearly three-quarters of approved H-1B visas go to workers from India.