US suspends work visa program for Indian IT firms, Microsoft citing widespread abuse

The Department of Labor (DOL) has suspended new and pending PERM applications for Microsoft, Adobe, and other major IT firms, citing alleged misuse of employment-based immigration programs. The suspension, which can last up to 180 days, is tied to ongoing investigations. The DOL's written notices will provide further details on the scope and duration of the suspensions.

Microsoft responded to its suspension from the Permanent Labour Certification Program, stating 80% of its H-1B visa applications were for existing employees. The company emphasized its commitment to American workers and high wages. Meanwhile, President Trump honored Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation, praising his leadership. The suspension follows allegations of H-1B visa misuse and layoffs of American workers.

The U.S. Department of Labor has halted PERM applications from Microsoft, Adobe, and six IT outsourcers, citing fraud concerns. Microsoft, the largest filer, denied wrongdoing, stating most applications were for current employees. The freeze impacts green card processing for foreign workers.

Vice President JD Vance announced that Microsoft and Adobe have been suspended from the H1B visa program due to alleged abuse and fraud. The taskforce also plans to investigate nine universities for J1 student visa fraud. Vance claimed Microsoft laid off 6,000 American workers while hiring 6,300 H1B visa holders and 3,000 green card holders, replacing each laid-off worker with 1.5 foreign workers.

The US suspended Microsoft and other tech firms from the Permanent Labor Certification Program, accusing them of abuse. Microsoft claims most of its workers are American and disputes the allegations. The suspension comes amid broader immigration crackdowns.

The U.S. Labor Department barred Microsoft (MSFT) and Adobe (ADBE) from filing new H-1B green card applications, citing concerns over hiring practices. Microsoft stated it pays H-1B workers competitively and most filings were for existing employees. Amazon (AMZN), the top H-1B employer, was not affected. The department is also investigating universities for potential research access by foreign entities.