US blocks Microsoft and Adobe access to green card processing program for foreign workers

The administration of US President Donald Trump has suspended the participation of Microsoft, Adobe and six major IT companies in a government program that allows employers to help foreign professionals obtain permanent residence in the US. The US authorities accuse the companies of abusing immigration procedures and displacing local workers.

The decision, announced on October 8, is reported by TechCrunch citing statements by US Vice President JD Vance and Labor Secretary Keith Sonderling.

The restrictions apply to the Permanent Labor Certification (PERM) program - a labor certification procedure that is usually one of the key stages in obtaining a green card for a skilled foreign worker.

Besides Microsoft and Adobe, participation in the program has been suspended for six major companies operating in IT services and outsourcing:

• Cognizant;
• Infosys;
• Tata Consultancy Services;
• Wipro;
• HCL;
• Capgemini.

According to Sonderling, the US Department of Labor will no longer accept new applications for permanent labor certification from these companies, and will also suspend consideration of those already being processed.

The authorities explain the decision by suspicions of violations in the employment of foreign specialists. Regarding Microsoft and Adobe, according to the minister, federal investigations are ongoing.

American officials have particularly sharply criticized Microsoft. Vice President JD Vance accused the company of reducing American workers while using immigration programs to attract foreigners.

Vance cited the reduction of approximately 6,000 Microsoft employees and compared it to the number of H-1B visas and permanent residence applications. In his opinion, this practice is contrary to the interests of the American labor market.

At the same time, Microsoft denied the conclusion about replacing American workers with foreign ones. The company issued a separate statement explaining the structure of its immigration applications.

According to Microsoft, during the past fiscal year it filed approximately 6,000 H-1B visa applications. About 80% of them involved extension or change of status for people already working at the company, rather than hiring new employees.

The remaining applications involved workers who were already lawfully in the US. Microsoft emphasized that this category comprises only about 1% of its US workforce.

The company also stated that it pays foreign specialists at the same level as other employees performing similar work and complies with visa program requirements.

Adobe at the time of TechCrunch publication had not provided a comment on the US authorities' decision.

What will change for foreign IT professionals

The PERM program requires that an American employer, before arranging permanent residence for a foreign worker, must confirm the absence of a sufficient number of available and qualified candidates among American workers.

In addition, the employer must prove that hiring a foreigner will not worsen the wage level and working conditions of Americans in similar positions.

After approval of the labor certification, the company can proceed to the next stages of the immigration procedure through the US Citizenship and Immigration Services (USCIS).

The current decision effectively blocks this stage of green card processing through the listed employers. For foreign IT specialists who expected to obtain permanent residence with the support of Microsoft, Adobe or other companies from the list, this may mean a delay in the immigration process.

At the same time, it is important to distinguish between PERM and the H-1B program. The latter allows foreign professionals to temporarily work in the US in specialized occupations, while PERM is used to arrange permanent employment and subsequently obtain a green card.

The announced restriction does not mean automatic revocation of all current H-1B visas or green cards of employees of these companies. It primarily concerns the ability of employers to undergo the labor certification procedure for permanent residence of foreign employees.

The duration of the restrictions and the procedure for further consideration of already submitted applications have not yet been specified by the US authorities.

US tightens control over employment of foreigners

The decision regarding IT companies is part of broader Trump administration campaign to strengthen control over immigration programs.

During the same briefing, Vance reported on inspections of nine American universities, including Harvard, Yale and Stanford. The authorities suspect possible abuses of the J-1 exchange visa program, which are used, in particular, for education and research by foreigners.

Technology companies traditionally are among the largest users of the H-1B program. It allows American employers to attract programmers, engineers and other highly qualified specialists from abroad.

New restrictions may complicate long-term career planning for foreign workers in large technology companies. At the same time, final consequences will depend on duration of the program suspension and results of federal investigations.

Based on materials from: TechCrunch, Microsoft, US Department of Labor