U.S. suspends Microsoft and Adobe from green-card labor certification program
In short
The Trump administration announced on October 8 that Microsoft, Adobe and other technology companies would be suspended from the Labor Department's permanent labor certification program. Officials alleged abuse of foreign-worker hiring rules; Microsoft disputed the allegations and defended its hiring practices.
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The Trump administration announced on October 8 that it would suspend Microsoft and other technology companies from sponsoring foreign employees for permanent residency in the United States. The action covers the Labor Department's Permanent Labor Certification program, known as PERM. Adobe is also among the companies suspended, Labor Secretary Keith Sonderling said. [ 8 , 12 , 29 ]
Sonderling said the department would neither accept new permanent labor certification applications nor process pending applications involving the companies. CNBC reported that he also named Cognizant, Infosys, Capgemini, Tata, Wipro and HCL. The secretary said Microsoft and Adobe had been suspended because of multiple active federal investigations. [ 8 , 17 ]
Vice President JD Vance singled out Microsoft, citing roughly 6,000 layoffs in 2025 and alleging that it had replaced those workers with H-1B visa holders. CNN reported that Vance and other officials accused the company of misrepresenting its staffing needs when seeking permanent residency for foreign employees. They alleged that Microsoft used the program to replace skilled American workers with similarly qualified immigrants who could be paid less. [ 8 , 12 ]
Microsoft disputed Vance's assertions. The company said 80% of the approximately 6,000 H-1B applications it submitted in the last fiscal year sought extensions or changes of status for existing employees. The remaining applications concerned people it hired who were already legally in the United States, CNN reported. Microsoft also said it paid H-1B employees the same as other employees performing comparable work, according to The Guardian. [ 8 , 12 , 17 ]
CNN and Bloomberg described the suspension as indefinite. Vance said the administration would deny Microsoft the ability to apply for permanent residency for workers until the company demonstrated that it was serious about putting American workers first. The company said the vast majority of its employees in the United States were Americans. [ 8 , 12 , 29 ]
Why it matters
The program provides a route for employers to seek permanent residency for foreign workers. Labor Secretary Keith Sonderling said the department would stop accepting new applications and processing pending applications involving the suspended companies.
Key facts
- The administration announced the suspension of Microsoft and Adobe from the Permanent Labor Certification program. [ 8 , 17 , 23 ]
- Sonderling said the department would not accept new applications or process pending applications involving the companies. [ 17 ]
- CNBC and TechCrunch also named Cognizant, Infosys, Capgemini, Tata, Wipro and HCL among the affected firms. [ 8 , 11 ]
- Vice President JD Vance alleged that Microsoft replaced workers laid off in 2025 with H-1B visa holders. [ 8 , 12 ]
- Microsoft said 80% of approximately 6,000 H-1B applications submitted in its last fiscal year were extensions or status changes for existing employees. [ 8 , 12 ]
- Microsoft said it paid H-1B employees the same as other employees doing comparable work. [ 17 ]
Confirmed by several sources
- Microsoft and Adobe were named among companies suspended from the permanent labor certification program. [ 8 , 17 , 23 ]
- Vance accused Microsoft of replacing laid-off workers with H-1B visa holders. [ 1 , 8 , 12 ]
- Microsoft said most of its recent H-1B applications concerned existing employees. [ 8 , 12 , 17 ]
- The suspension was described as indefinite. [ 12 , 29 ]
Still unclear
- Whether Microsoft used the program to replace American workers with lower-paid foreign employees remains disputed. Vance and other officials alleged misuse, while Microsoft disputed their assertions and said H-1B employees received the same pay as others doing comparable work.
- The reports do not provide a date for the suspension to end. CNN and Bloomberg described it as indefinite; Vance linked restoring Microsoft's access to putting American workers first.
What local media are saying
Timeline, local time
- Associated Press reported Vance's announcement of Microsoft's suspension and his allegations of fraud. [ 1 ]
- CNBC detailed the companies affected, ongoing federal investigations and Microsoft's response. [ 8 ]
- The Guardian reported that new and pending applications would not be processed and carried Microsoft's statement on equal pay for comparable work. [ 17 ]
- Bloomberg reported that the suspension of companies' ability to sponsor foreign employees for permanent residency was indefinite. [ 29 ]