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The U.S. Department of Labor has blocked Microsoft from processing new or pending applications under the Permanent Labor Certification (PERM) programme, a key pathway for foreign workers to obtain permanent residency in the United States. Source: bbc.co.uk.
What Happened
On Thursday, U.S. Vice President JD Vance accused Microsoft and several other tech firms of abusing the H-1B visa and PERM programmes.
Vance claimed Microsoft laid off 6,000 workers and filed 6,800 H-1B applications in the same period, suggesting it replaced American workers with foreign hires.
Secretary of Labor Keith Sonderling confirmed the Department of Labor will not process any new PERM applications from Microsoft or seven other companies, including Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini.
Key Facts
- The PERM programme allows skilled foreign workers to apply for permanent residency through a Green Card process.
- Microsoft stated that 80% of its H-1B filings in the past fiscal year were for existing employees, not new hires.
- Microsoft employees in the U.S. are predominantly American, according to company officials.
- Median salary for H-1B workers at Microsoft is $155,000, according to Ellis, a firm that supports tech hiring.
- Foreign workers under H-1B visas have a 60-day grace period if laid off, though the government has proposed eliminating this period.
Background: How the Program Works
The H-1B visa allows U.S. companies to hire foreign workers with specialized skills, typically in tech, engineering, or science.
After H-1B approval, companies may apply for PERM certification, which is a prerequisite for permanent residency through a Green Card.
Over 130,000 PERM applications were certified last fiscal year across ten business categories.
These programmes have been used by major U.S. tech firms for decades, including Amazon, Google, Meta, Apple, and Nvidia.
Why It Matters
Microsoft is one of the largest tech companies in the U.S. and employs over 200,000 people globally.
Its exclusion from the PERM programme raises questions about consistency in enforcement and the impact on global talent recruitment.
Other major tech firms were not named in the criticism, suggesting a targeted approach.
The move may signal a broader shift in how the U.S. government views foreign worker programmes, particularly in high-tech sectors.
Limitations and Open Questions
The White House has not provided detailed evidence of fraud or wage suppression by Microsoft.
Microsoft has not acknowledged the allegations, and its spokesperson emphasized that all H-1B hires are paid the same as domestic workers.
There is no public data on how many of the 6,800 H-1B filings were for new hires versus existing staff.
Experts note that the PERM programme is designed for cases where domestic talent is unavailable, not as a substitute for layoffs.
What to Watch Next
The U.S. government has proposed eliminating the 60-day grace period for foreign workers who lose their jobs — a change that could impact thousands of workers.
Microsoft and other firms may respond with formal comments or legal challenges.
The BBC has contacted all the companies for comment, but no official responses have been published yet.
As of now, no other major tech firms have been targeted in the same way.
For more on U.S. tech policy and immigration, see the original report from BBC News.
