What is PERM? Why Trump suspended Microsoft and Indian IT firms from green-card programme
Vice President JD Vance announced the move on Thursday (October 8), accusing companies of using foreign-worker programmes at the expense of US employees.
The Donald Trump administration has temporarily barred major tech companies, including Microsoft, Infosys, and Tata Consultancy Services, from a program that helps skilled foreign workers obtain permanent residency in the United States. This program, known as the Permanent Labor Certification (PERM), is an essential step in the employment-based green-card process for many foreign workers.
The administration claims that some companies have exploited the system by replacing American workers with cheaper foreign labor. Vice President JD Vance announced the suspension, accusing the companies of sacrificing American employees for lower-cost foreign labor. PERM, managed by the US Department of Labor, involves an employer seeking certification to permanently employ a foreign worker.
This process includes identifying a permanent, full-time job, establishing job requirements, obtaining a prevailing wage determination, and filing a PERM application with the Department of Labor. The Trump administration stated that these companies abused the system, replacing or undercutting American workers with foreign labor.
The Department of Labor will not accept new or process pending PERM applications from the suspended firms. PERM certification is not a green card itself but a crucial step in the employment-based green-card process. H-1B is a temporary work visa, while PERM deals with permanent employment. PERM was introduced in 2005 to streamline the process and ensure that hiring foreign workers does not negatively impact American workers' wages and working conditions.
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