The United States government, under the administration of Donald Trump, has determined the suspension of Microsoft's participation in an immigration program that allows the company to hire and retain foreign workers in American territory. This sanction also extends to other corporations, including Adobe, Cognizant, and Infosys, due to allegations of fraud.
It is important to note that this restriction only limits the use of the Permanent Worker Certification (PERM) program by the mentioned companies, and does not affect the issuance of Green Cards or any other existing visa types.
According to Vice President J.D. Vance, the purpose of the PERM program is to allow American companies to hire foreign labor when there are not enough American citizens for certain positions. However, Vance accused some companies of using PERM with the intent of employing personnel at lower wages.
Vance pointed to Microsoft as the company that would have benefited most from this system, stating: 'Our message to Microsoft is: you are a large American company, but you need to hire great American workers.'
According to information from the Trump administration, only Microsoft and Adobe jointly requested nearly three million authorizations for foreign workers. These companies received over 230,000 H-1B visa approvals (temporary work authorization) and obtained more than 100,000 permanent worker certifications through PERM.
Additionally, Vance alleged that, parallel to these benefits, Microsoft laid off 6,000 American employees last year while simultaneously benefiting from 6,300 H-1B visas and nearly 3,000 Green Cards designated for foreigners.
In response to Reuters, Microsoft clarified that it compensates its H-1B visa holders with the same amounts paid to local employees performing comparable functions. The company also reported that approximately 80% of the H-1B visa applications submitted in its last fiscal year were for individuals already working at the organization, not for new foreign hires.
As a consequence of the American government's determination, new PERM applications by the affected companies are prohibited, and ongoing processes will be suspended. However, the measure does not invalidate H-1B visas or Green Cards that have already been granted. The suspension has no defined end date and is expected to last at least during the investigation period.