The US government has suspended Microsoft, Adobe, and several major IT companies from the Permanent Labor Certification (PERM) program, a key step in the process through which skilled foreign workers can obtain employment-based green cards. Vice President JD Vance and Labor Secretary Keith Sonderling announced the move on October 8, citing alleged fraud and saying the administration wants companies to hire more American workers.
The suspension affects both new and pending permanent labor certification applications involving the named companies. The decision could significantly affect foreign technology workers seeking permanent residency in the US, particularly employees of large IT services companies.
In addition to Microsoft and Adobe, the Labor Department named Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. Sonderling said the department would not accept new applications or process pending PERM applications involving these companies.
The companies include some of the largest employers of foreign technology workers in the US. The announcement is therefore likely to attract particular attention among Indian IT professionals, many of whom use employment-based immigration routes to build long-term careers in the country.
PERM, or Permanent Labor Certification, is administered by the US Department of Labor. Before an employer can generally file for an employment-based green card, it must show that no qualified, willing, and available US worker can fill the position.
The process is separate from the H-1B visa program, so the announcement does not suspend H-1B visas. However, blocking PERM applications can create a major obstacle for H-1B workers seeking permanent residency.
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Vance accused Microsoft of abusing the system and said the administration expects major American companies to prioritize US workers. Sonderling also cited the number of foreign-worker applications and certifications associated with the affected companies over the years while announcing the action.
The administration is also investigating nine US universities, including Harvard, Yale and Stanford, over allegations involving international students and wages. Labor Department officials said it had already issued subpoenas as part of a broader fraud investigation.
The latest action adds another layer of uncertainty for technology companies that depend on skilled international workers and for foreign employees navigating the already lengthy US permanent-residency process.