White House blocks Microsoft from foreign worker hiring program

The White House has prohibited Microsoft and other major technology firms from utilizing a specific visa program to hire skilled international workers on a permanent basis, according to a report. Vice President JD Vance accused Microsoft, along with other companies, of employing fraudulent tactics within the H-1B visa system and the subsequent process for foreign nationals to obtain permanent residency in the US.

Vance contended that Microsoft, one of the nation's most valuable corporations, has been essentially substituting American workers with "foreign indentured servants." Microsoft's spokesperson clarified that the majority of H-1B visas filed during the most recent fiscal year were for existing employees who are compensated at the same level as their US counterparts.

No company has abused the system more than Microsoft, Vance asserted, while referencing similar allegations against Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. The US Department of Labor will refrain from processing any new or pending Permanent Labor Certification Program (PERM) applications from Microsoft and the seven other companies, as stated by Labor Secretary Keith Sonderling.

Sonderling further claimed that entities like Microsoft and US educational institutions have transformed into "visa mills," inundating the country with foreign workers. Microsoft stated that the vast majority of its US employees are Americans, with over 200,000 workers globally. Vance pointed to Microsoft's layoffs of approximately 6,000 employees and filing of 6,800 H-1B visa applications during the same timeframe as evidence of the company replacing domestic workers with foreign labor and attempting to suppress wages.

Microsoft maintained that 80% of its H-1B visa filings over the past fiscal year were for employees already employed by the company, not for new hires, and that the international workers it employs through the H-1B program receive the same compensation as US workers. The median salary for an H-1B worker at Microsoft is $155,000, according to Ellis, a firm that assists numerous tech companies in recruiting skilled personnel from abroad.

Microsoft spokesperson expressed hope to supply the Administration with further details. Despite being present at numerous White House events, including a technology innovation award ceremony for Microsoft CEO Satya Nadella, the company faced Vance's criticism. Vance emphasized that Microsoft should hire American workers and not lay off domestic workers and replace them with foreign "indentured servants" who must leave the country if dismissed.