White House blocks Microsoft from foreign worker hiring program

Last Thursday, the White House blocked Microsoft and seven other major technology firms from hiring skilled international workers through a specific visa program, according to Vice President JD Vance. The US government will not process any new or pending applications for the Permanent Labor Certification Program (PERM) for these companies, stated Secretary of Labor Keith Sonderling.

This move comes after Vance accused Microsoft, alongside Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini of committing fraud via the H1b visa program and the subsequent process for foreign workers to become permanent US residents. Vance alleged that Microsoft, one of the most valuable companies in the US, has been replacing American workers with foreign labor.

He claimed the company has laid off about 6,000 workers and filed 6,800 H1b visa applications in the same period, suggesting the company was using foreign workers to undercut American wages. Microsoft refuted this, stating that 80% of its H1b visa filings were for existing employees, not new hires, and that international workers pay the same wages as US-based counterparts.

The White House has contacted all the mentioned companies for comment. The number of H1b visas, a precursor to the PERM process, is limited to 85,000 annually. The PERM program allows highly skilled workers, who cannot be found domestically, to become permanent US residents, potentially leading to a Green Card. Microsoft, along with other major tech firms like Amazon, Google, Meta, Apple, Nvidia, and others, frequently employs international workers through this program.