Microsoft barred from using PERM Program for H-1B workers

U.S. Vice President JD Vance has announced the suspension of the PERM program for Microsoft, citing an ongoing investigation.

Vice President Vance announced that Microsoft, along with Adobe, and other tech companies, will be barred from utilizing the program. They no longer be able to use the program to help H-1B workers apply for permanent resident status in the United States.

He called on Microsoft and other companies to prioritize American workers while continuing to invest and create jobs in the country.

Vance also criticized the H-1B visa program, saying it was intended to bring highly skilled foreign workers to positions that cannot be filled by American workers but has become “rife with fraud” in recent years.

He claimed H-1B workers earn about $20,000 less than American citizens in similar positions, while those brought in by foreign outsourcing firms earn about $48,000 less.

Vance accused companies of laying off American workers and replacing them with foreign workers to reduce labour costs. He also rejected what he called the idea that Americans are not qualified for jobs in their own country.

“There’s this pernicious idea, and @StephenM alluded to it, which is that Americans are not good enough for the jobs in their own country,” Vance said.

He added that visa fraud is “a frontal assault” on the belief that Americans deserve to inherit jobs and positions in their own country.

The United States has suspended eight companies, including Tata, Wipro and Microsoft, from the Permanent Employment Certification program, potentially affecting green card applications for foreign workers.

Cognizant, Infosys, HCL and Capgemini are also among the companies facing the action. The decision could affect foreign employees whose employers need new labour certifications as part of the employment-based green card process.

The PERM program is an important step for foreign workers seeking permanent residency in the United States. The decision could particularly affect Indian professionals, who make up a large share of beneficiaries of the H-1B visa program.

The Department of Labor said it will no longer accept new permanent labor certification applications involving these companies, nor will it process applications that are already pending.