The United States (US) government has suspended Microsoft, Adobe and several major IT companies from the Permanent Labour Certification (PERM) programme.
The move is part of the Trump administration’s efforts to stop what it calls misuse of the employment-based immigration system.
US Vice President JD Vance announced the decision on Thursday. He accused Microsoft of misusing the system and said major US companies should give more jobs to American workers.
“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” Vance said.
He also claimed that Microsoft had misused the system more than any other company in the US.
Which companies are affected?
US Labour Secretary Keith Sonderling said the action also covers several major IT companies. The list includes Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.
The government will not accept new PERM applications from these companies. Pending applications will also be affected by the decision.
The PERM programme is an important part of the US employment-based green card process.
Under the programme, companies must generally show that qualified American workers are not available for a specific job before they can sponsor a foreign worker for permanent residency.
Will green card and H-1B cases be cancelled?
The suspension only affects the PERM labour certification stage. It does not mean that all existing green card or H-1B cases have been cancelled.
However, the move could affect many foreign technology workers. The impact may be greater for workers at major Indian IT companies that depend on employer-sponsored immigration programmes.
Why are US universities also being investigated?
The Trump administration is also investigating nine US universities. The institutions include Harvard, Yale and Stanford.
Officials are looking into claims that international students may have been used to reduce wages for American workers.
Labour Inspector General Anthony D’Esposito said subpoenas have already been issued.
Officials are also examining possible foreign influence, financial links and visa-related violations connected to federally funded research.
