Trump Administration Suspends Major IT Firms from Labor Certification Program
Suspension of IT Companies from Labor Certification
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Washington, Oct 9: The administration under Donald Trump has taken action against eight prominent IT firms, including Microsoft, Infosys, Tata, Wipro, HCL, Cognizant, Adobe, and Capgemini, by suspending them from the US Permanent Labour Certification Programme. This decision stems from allegations that these companies have been misusing the system to hire foreign workers, thereby disadvantaging American employees.
This announcement was made on Thursday by Vice President JD Vance, Labour Secretary Keith Sonderling, and Attorney General Todd Blanche, as part of a broader initiative led by the US Anti-Fraud Task Force. The Department of Labour has stated that it will not accept new applications or process any pending permanent labour certification requests from these companies.
The Permanent Labour Certification Programme, often referred to as PERM, mandates that employers prove there are not enough qualified US workers available for a position and that hiring a foreign worker will not negatively impact the wages and working conditions of American employees in similar roles.
During the announcement, Sonderling highlighted that these companies had collectively sought nearly three million foreign workers since 2009, resulting in over 230,000 H-1B visa approvals and more than 100,000 permanent labour certifications.
Vance criticized Microsoft specifically, claiming it has been the most significant abuser of this system, citing that the company laid off 6,000 American workers in 2025 while simultaneously securing thousands of H-1B visas and filing for permanent residency for foreign employees.
He further accused these companies of advertising job openings in a manner that made it challenging for American applicants to respond, which they then used to justify hiring foreign workers. Vance referred to some foreign workers as “foreign indentured servants,” arguing that their reliance on employer-sponsored immigration status rendered them susceptible to exploitation.
In response, Microsoft refuted these claims, stating that around 80% of the nearly 6,000 H-1B visa applications it submitted in the last fiscal year were aimed at extending or changing the status of current employees rather than recruiting new ones. The company clarified that new employee applications involved individuals already legally residing in the United States.
This action comes amid increasing scrutiny of the H-1B programme, which permits US employers to hire foreign professionals for specialized roles. Notably, Indian professionals represent over 70% of the approved H-1B petitions each year, making these restrictions particularly impactful for Indian tech firms and their workforce.
Critics of this administration's decision have questioned its justification. Doug Rand, a former senior adviser at US Citizenship and Immigration Services, argued that preventing companies from assisting existing H-1B employees in obtaining green cards could inadvertently increase workers' dependence on their employers.
Additionally, the administration has launched an investigation into the use of J-1 exchange visitor visas by nine universities, including prestigious institutions like Harvard, Yale, Stanford, MIT, Brown, and Caltech. Vance alleged that some universities were exploiting this programme to undermine wages for American graduate students and researchers.
The J-1 programme allows foreign nationals to temporarily enter the US for activities such as research, teaching, and specialized professional exchanges. Stanford has indicated its willingness to cooperate with the investigation, while MIT and Brown have acknowledged receiving and are reviewing government subpoenas related to their foreign worker programmes.
This latest move follows other immigration restrictions implemented by the Trump administration, including a proposed USD 70,000 fee for international students wishing to participate in the Optional Practical Training programme, which enables eligible foreign students to gain work experience relevant to their studies.
The suspensions represent a significant escalation in the administration's efforts to enhance oversight of employment-based immigration and prioritize American workers.