WASHINGTON, Oct 8 — The U.S. Department of Labor announced Thursday it would suspend Microsoft and Adobe from the Permanent Labor Certification (PERM) program, blocking the companies from sponsoring foreign workers for permanent residency. The Labor Department also halted processing of new PERM applications for seven additional tech firms: Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Capgemini, and Cognizant.
The Labor Department confirmed in a statement that no new or pending PERM applications from the listed companies would be accepted or processed. Labor Secretary Keith Sonderling cited multiple active federal investigations as the reason for the suspension of Microsoft and Adobe. Sonderling added that since 2009, the affected companies had requested nearly 3 million foreign workers, receiving over 230,000 H-1B visa approvals and 100,000 permanent labor certifications.
Vice President JD Vance separately announced that nine universities, including Harvard, Yale, Stanford, Caltech, UC Davis, MIT, Brown, the University of Pittsburgh, and Arizona State, would face investigations into their use of J-1 exchange-visitor visas. Vance alleged that universities were overusing J-1 visas to undercut American wages by bringing in foreign researchers and students who could replace domestic workers. He stated, “They are using these visas way too much… to undercut the wages of American grad students and American researchers.”
Microsoft and Adobe did not immediately respond to requests for comment. Tata Consultancy Services declined to comment, while the other listed companies did not provide statements. The Labor Department’s PERM program requires employers to demonstrate that hiring a foreign worker will not harm U.S. workers’ wages, working conditions, or job opportunities.
The moves mark the broadest strike yet against skilled-worker immigration programs, potentially blocking a common path to permanent residency for thousands of foreign tech workers. The administration framed the actions as part of a broader effort to crack down on alleged visa fraud and protect American jobs.
Background: Visa Programs Under Scrutiny
The PERM program is a labor certification process required for most employment-based green cards. Employers must prove that hiring a foreign worker will not negatively impact U.S. workers. The H-1B visa allows companies to temporarily employ foreign workers in specialty occupations, while the J-1 visa is used for educational and cultural exchange programs, including research and student exchanges.
Critics of the PERM and H-1B programs argue they enable companies to replace American workers with lower-cost foreign labor, citing cases where firms laid off U.S. employees while sponsoring foreign workers. Supporters of the programs contend they are essential for filling critical skills gaps and maintaining U.S. competitiveness in technology and research.
Political and Industry Reactions
Vice President Vance’s remarks singled out Microsoft, stating, “There’s been no company in the United States that has abused this system more than Microsoft.” He claimed that in the past year, Microsoft laid off 6,000 American workers while benefiting from 6,300 H-1B visas and nearly 3,000 green cards. Microsoft responded that the vast majority of its U.S. employees are Americans and that it only files H-1B petitions for workers meeting rigorous visa standards.
Labor Secretary Sonderling framed the suspensions as a response to systemic fraud and job displacement, stating, “Hundreds of thousands of jobs were taken from American workers” by the targeted companies. The administration’s actions come amid heightened scrutiny of immigration policies ahead of the November midterm elections.
Implications for Tech and Academia
The suspensions could disrupt thousands of pending green-card applications for foreign workers employed by the affected companies. Tech industry leaders in Silicon Valley expressed concern, arguing that easy access to global talent is a key competitive advantage for U.S. innovation. Educators similarly warned that restrictions on J-1 visas could limit research collaborations and academic exchanges.
The Labor Department’s actions follow a series of policy shifts targeting high-skilled immigration, including stricter enforcement of H-1B visa rules and increased scrutiny of university visa programs. The administration has not provided a timeline for the investigations or the duration of the suspensions.