The Labor Department has halted green card filings for Microsoft, Adobe and six IT outsourcing firms, while Microsoft rejects the claims of visa abuse.
The Microsoft and Adobe green card suspension was announced on Thursday, October 8, when Vice President JD Vance and Labor Secretary Keith Sonderling said the Labor Department would stop handling permanent residency filings tied to eight companies over alleged visa fraud. Sonderling said Microsoft and Adobe were suspended because of multiple active federal investigations. Bloomberg reported that the suspension has no end date.
Microsoft and Adobe Green Card Suspension: What the Labor Department Announced
Fox 13 Seattle reported that officials spoke at a White House news conference on fraud and abuse in the H1-B visa programme. Technology.org reported that the department will not accept new applications or process pending ones involving Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. Sonderling put it this way: “We will not accept any new or process any pending” applications.
The programme is known as PERM, short for Permanent Labor Certification. According to Technology.org, it is the first step most employers must clear before sponsoring a worker for a green card.
Vance Targets Microsoft in the H1B Visa Fraud Crackdown
Vance focused his remarks on Microsoft. Al Jazeera reported that he told the company it must hire “great American workers.” Fox Business reported that he said no US company had “abused the system more than Microsoft.”
WPDE reported that Vance said Microsoft laid off 6,000 American workers last year while benefiting from about 6,300 H1-B visas and nearly 3,000 green cards. Newsweek, citing federal data, reported 6,258 H1-B approvals for Microsoft in the last fiscal year and 3,157 PERM filings. Al Jazeera added that Microsoft ranks fifth among US employers for H1-B visa use, and that the Labor Department said it had uncovered $22 billion in visa fraud.
Microsoft Responds While Adobe Stays Silent
Microsoft disputed the account. The company said about 6,000 H1-B applications were filed last fiscal year, and 80 percent covered extensions or status changes for current employees. TechCrunch reported that Microsoft also said it files petitions only for people who meet the visa category’s standards, and pays them the same as comparable colleagues. Bloomberg reported that the company looks forward to giving the administration more information, and that Adobe and the named Indian firms had not responded to requests for comment.
Does the Suspension Cancel Existing Visas?
Not directly. The Tennessee Star reported that the move does not cancel current H1-B visas but blocks the named companies from using the labor certification that usually leads from a temporary visa to a green card. Rolling Out reported that workers already in the country are not immediately affected, but cannot pursue green cards through PERM for now. None of the reports reviewed by Tamrah News described conditions for lifting the suspension.
Nine Universities Face Visa Investigations
The announcement also widened beyond industry. TechCrunch reported that Vance said nine universities, including Harvard, Yale and Stanford, would be investigated over alleged misuse of a programme for international students. WPDE reported that Labor Inspector General Anthony D’Esposito said investigators will examine whether the schools misused J-1 classifications to avoid employment obligations or undermine American workers. Citing Reuters, reported that subpoenas have already been served.
Market Reaction to the Announcement
Microsoft shares fell 1.7 percent on Thursday, while Adobe rose 1 percent and Cognizant gained 2.4 percent. US listed shares of Infosys slipped 0.8 percent. Al Jazeera noted that supporters of President Donald Trump have long argued that the H1-B programme undercuts American workers.
Microsoft and Adobe Green Card Suspension: What Happens Next
No schedule for further action has been published in the coverage reviewed. The Labor Department has not been reported to release the investigation findings behind the Microsoft and Adobe decisions.