The United States government has suspended Microsoft, Adobe and several major technology companies from a programme used by employers to sponsor skilled foreign workers for permanent residency, citing alleged fraud and a push to prioritise American workers.
The companies affected include Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, US officials said on Thursday.
The suspension means the companies will not be allowed to submit new applications or have pending applications processed under the Permanent Labour Certification, or PERM, programme.
US Vice President JD Vance announced the move during a press conference on anti-fraud initiatives, saying American companies should do more to employ US workers.
“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” Vance said.
US Acting Labour Secretary Keith Sonderling said the government would stop processing new and pending permanent labour certification applications involving the affected companies.
The PERM process is an important step for employers seeking employment-based green cards for foreign workers. Companies must generally demonstrate to the US Department of Labor that there are no qualified, willing and available American workers for the specific positions before sponsoring eligible foreign employees for permanent residency.
The latest action is part of a broader US government crackdown on alleged abuse and fraud in foreign-worker visa programmes.
The Department of Labor’s Office of Inspector General has been investigating fraud involving the PERM and H-1B systems, including allegations of falsified labour-related visa applications and practices that could disadvantage both US and foreign workers.
Microsoft had not immediately commented on the suspension at the time of the announcement.
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The move could have significant implications for skilled foreign workers employed by the affected companies who are seeking permanent residency through employer sponsorship, particularly those whose applications are still being processed.
The government also announced investigations into nine US universities, including Harvard, Yale and Stanford, over allegations involving international students and the employment of foreign workers.
Labour Inspector General Anthony D’Esposito said subpoenas had already been issued as authorities examine whether foreign influence, improper financial relationships or visa abuse had affected federally funded research.
The investigations and company suspensions come as the Trump administration intensifies scrutiny of programmes that allow US employers to recruit and retain foreign workers, arguing that the systems should not be used to displace qualified American workers.
The Department of Labor has previously described PERM as a programme that allows US employers to hire foreign nationals permanently while ensuring that the employment does not adversely affect job opportunities, wages and working conditions for American workers.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
