USAupdated 1h ago2 min read
U.S. Suspends Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, Capgemini From PERM Over Fraud
US suspends Microsoft, Adobe and several IT firms from PERM green-card program amid fraud probe. Cognizant, Infosys, Tata, Wipro, HCL, Capgemini suspended from PERM program.
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PERM Suspensions Announced
The U.S. government suspended Microsoft, Adobe and several large IT firms from the Permanent Labor Certification, or PERM, process, senior US officials announced on Thursday citing alleged fraud. US Vice President JD Vance said, "Our message to Microsoft is: You're a great American company, but you've got to hire great American workers," as the administration framed the action as part of an effort to push companies to hire more Americans. Secretary of Labor Keith Sonderling said the Department of Labor would not accept any new or process any pending permanent labor certification applications involving these companies.
Sonderling added that some of the largest IT firms in the world would also be suspended from that program, including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. Labor Inspector General Anthony D'Esposito said subpoenas had already been served as the investigation moved forward under the PERM crackdown.
Vance Targets Microsoft
JD Vance accused Microsoft of replacing laid off workers with foreign labor, saying, "If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants." The Associated Press reported that Microsoft did not immediately respond to a request for comment after the administration announced the suspension from the program to apply for green cards for workers who come to the U.S. using H-1B visas. The administration also expanded its scrutiny beyond PERM, with Vice President JD Vance saying nine universities, including Harvard, Yale and Stanford, would be investigated for allegedly bringing in international students to undercut American wages.
The Department of Homeland Security proposed a $70,000 fee for international students seeking to work in the United States, and the proposed rule would require schools to pay the fee for every student who participates in the Optional Practice Training, known as OPT. Vance called out universities he suggested were abusing the J-1 visa program, which allows international visitors to temporarily come to the U.S. for work and study exchange programs.
Scale of Allegations
US Labor Secretary Keith Sonderling said the suspended firms had collectively received over 230,000 H-1B approvals and over 100,000 permanent labour certifications. Sonderling also said, "Since 2009, just these companies alone have requested almost three million foreign workers," linking the PERM suspension to a broader claim of abuse of employment-visa programmes. The administration said it was not cancelling H-1B visas themselves, but it was cutting off access to PERM, which it said makes it far harder for the affected companies to convert their H-1B workers into permanent residents.
“Sonderling said these firms have collectively received over 230,000 H-1B approvals and over 100,000 permanent labour certifications.”
The Office of Inspector General investigation into H-1B and PERM fraud had been announced in July, and Inspector General Anthony D’Esposito said at the time that dozens of subpoenas had been issued. The next steps were expected to include further details from the Labor Department about the scope and duration of the suspensions and additional investigative actions and responses from the affected companies.