U.S. blocks PERM green-card route for Microsoft, Adobe, and IT outsourcers
The U.S. government has halted PERM labor certification processing for Microsoft, Adobe, and several IT outsourcing firms. Vice President JD Vance cited alleged fraud and abuse, saying Microsoft in particular misused the system. The suspensions block a route for H-1B employees to obtain green cards while federal investigations continue.
The suspensions affect both fresh and already submitted PERM requests at the named companies, according to the announcement. Vice President JD Vance said Microsoft and Adobe were blocked, while Cognizant, Infosys, Tata Consultancy, Wipro, HCL, and Capgemini also faced suspensions. Labor Secretary Keith Sonderling attributed the Microsoft and Adobe decisions to ongoing federal investigations.
Vance alleged Microsoft laid off 6,000 employees while receiving 6,300 H-1B approvals and almost 3,000 green cards. He also said the company filed 3,682 PERM applications, with about 1,000 for roles that appeared to overlap with dismissed workers. The companies had not yet responded.
The suspensions could leave many H-1B employees at these companies without a near-term green-card route, extending temporary status and creating uncertainty for workers and families. Firms may face retention and recruitment challenges, while other employers could see increased interest from affected staff. The broader labor market may feel modest effects if projects are delayed or roles shift. Ongoing investigations may also encourage stricter compliance across immigration sponsorship, though outcomes remain uncertain.