On Thursday, October 8, the Trump administration declared the suspension of eight major tech and IT service companies, including Microsoft and Adobe, from a federal program that facilitates the sponsorship of permanent residency for foreign workers in the United States. This move comes amidst ongoing investigations into alleged abuses of work visa systems.
Impact on the Labor Certification Program
The suspension specifically targets the Permanent Labor Certification Program (PERM), managed by the Department of Labor. However, it does not amount to a blanket cancellation of H-1B visas or green cards that have already been granted.
During a White House briefing, Vice President JD Vance disclosed the action against Microsoft, while Secretary of Labor Keith Sonderling expanded the list to include other companies, as reported by Reuters and Fox Business.
Which Companies Are Affected?
In addition to Microsoft and Adobe, the announcement affects Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini—all key players in the U.S. market for hiring foreign professionals.
Sonderling stated that the Department of Labor will neither accept new PERM applications nor process pending requests from these companies. He linked the decision to safeguarding American jobs and, in the cases of Microsoft and Adobe, to ongoing federal investigations.
Allegations Against Microsoft
JD Vance highlighted Microsoft, accusing the company of laying off approximately 6,000 workers while benefiting from around 6,300 H-1B visas and nearly 3,000 permanent residency processes for foreign employees. These figures were presented as evidence of a system enabling companies to replace domestic jobs with international hires. Vance urged the company to prioritize American workers.
It's crucial to note that the allegations are not substantiated by these numbers alone, and there has been no judicial conclusion confirming the replacement of laid-off workers with foreign employees. Microsoft had yet to issue a public response to the announcement at the time of Reuters' initial reports.
Understanding the PERM Program
The PERM program is a common step in many employment-based permanent residency applications, particularly in job categories requiring labor certification. Employers must demonstrate, according to applicable rules, that no sufficient, willing, and qualified American workers are available for the role, and that hiring a foreign worker will not negatively impact the wages or conditions of comparable employees.
Once certification is granted, the employer may proceed with an immigrant petition using Form I-140 with U.S. Citizenship and Immigration Services (USCIS), when applicable. Not all employment-based residency categories require PERM.
Clarification on H-1B Visas and Approved Residencies
No general cancellation of H-1B visas or already approved green cards was announced. The known restriction is focused on the processing of permanent labor certifications for the named companies.
This means individuals with valid temporary visas might face barriers in advancing to permanent residency if sponsored by these companies. For employees with pending PERM applications, the Department of Labor's statement indicates a halt in processing. Those who have surpassed this phase or use different immigration paths should assess the impact based on their case specifics; the announcement doesn't imply all processes have been nullified.
Implications for Cubans in the U.S.
The impact on Cuban professionals in the U.S. tech sector depends on their employer and the migration pathway for their residency application. If a Cuban worker's employer is among the suspended companies and requires PERM certification, they may encounter delays or a halt in that step.
However, the measure does not affect the Cuban Adjustment Act, a separate path for eligible Cuban nationals or citizens. This announcement should not be misinterpreted as a blanket ban on residency for Cubans.
Amid reports from CiberCuba on a lawsuit against new green card-related immigration restrictions, it’s vital to recognize the distinction between different procedures and measures.
Those with residency applications sponsored by affected companies should verify with their employer or legal representative if their case requires PERM, its current stage, and any additional instructions from the Department of Labor. For alternative work and residency paths, the CiberCuba work visa guide may also be consulted.
Broader Crackdown on Suspected Immigration Fraud
This decision is part of a broader federal investigation. In July, the Department of Labor's inspector general announced efforts to probe potential fraud and abusive practices in H-1B and PERM programs.
During Thursday's briefing, authorities also revealed inquiries into the use of J-1 visas at nine universities, including Harvard, Yale, and Stanford, due to suspicions of practices harmful to American workers' conditions. These are ongoing investigations, not established culpabilities.
Currently, the action against the eight companies marks a new tightening of the oversight on international hiring in the U.S., with significant implications for foreign professionals relying on job offers to secure permanent residency.
FAQs on Corporate Suspension from Green Card Program
What is the reason behind the suspension of these companies?
The suspension is due to ongoing federal investigations into alleged abuses of the work visa systems, aimed at protecting American jobs.
Are all visas and green cards affected by this suspension?
No, the suspension specifically impacts the processing of PERM certifications for the listed companies and does not cancel existing H-1B visas or green cards.
How does the PERM program affect obtaining a green card?
The PERM program is part of the employment-based green card process, requiring employers to prove a lack of available American workers for the job.
What should affected employees do?
Affected employees should consult with their employer or legal representative about their case status and any further guidance from the Department of Labor.