H-1B is ‘not a business model’: Infosys, TCS, Wipro face fresh scrutiny as US visa crackdown widens
The warning comes on the heels of an expanding federal investigation into alleged abuses within the H-1B visa and employment-based green card programmes.
The US Labour Department has warned businesses against using temporary work visas as a core business model, as part of a widening crackdown on alleged immigration fraud. Inspector General Anthony D’Esposito stated that these visas are temporary measures, not permanent business strategies. In an interview with Fox News, he emphasized that employers should only use H-1B visas if they cannot find a suitable American worker.
The warning follows the Trump administration's aggressive "America First" stance on hiring domestic workers. In October, the administration suspended major technology companies, including Microsoft, Adobe, and Indian IT giants like TCS, Infosys, and Wipro, from the PERM programme. This move halted the processing of PERM applications for these companies, affecting their foreign professionals' chances of obtaining permanent US residency.
D’Esposito hinted at further investigations and potential suspensions of other companies and educational institutions. The administration has also introduced stricter financial requirements for H-1B petitions and extended visa restrictions through September 2027. While a complete overhaul of the H-1B programme has not been announced, the Inspector General's latest warning raises the possibility of additional regulatory changes.
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