White House Bars Microsoft and Seven Other Companies From New PERM Visa Applications

Microsoft and several other technology companies have been barred by the White House from permanently hiring skilled foreign workers through the widely used H-1B and PERM visa processes.

Vice President J.D. Vance accused Microsoft and other companies on Thursday of abusing the H-1B visa program and related immigration processes used by international workers seeking U.S. permanent residency.

Vance argued that Microsoft, one of America’s most valuable companies, was effectively replacing American workers with “foreign indentured servants.”

U.S. government halts PERM applications

Labor Secretary Keith Sonderling said at the same conference that the U.S. government would not process new or pending Permanent Labor Recognition Program (PERM) applications from Microsoft and seven other companies.

Sonderling said companies such as Microsoft and American universities had become “visa factories” that “flood” the United States with foreign workers.

Vance made similar accusations against Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. The BBC has contacted each company for comment.

The H-1B visa program has a cap of 85,000 visas per year, according to the American Immigration Council, external. H-1B visas are often relevant to skilled foreign workers seeking to continue through the PERM process.

Microsoft disputes claims about foreign workers

A Microsoft spokesperson told the BBC that most of the company’s H-1B visa applications last year were for existing employees, who are paid the same wages as local staff.

“The vast majority of Microsoft employees in the US are American nationals,” the spokesperson said. Microsoft has more than 200,000 employees worldwide.

Vance claimed Thursday that Microsoft had laid off about 6,000 employees and filed 6,800 H-1B visa applications during the same period. He said this was evidence that the company was using foreign workers to replace domestic workers and reduce wages.

Microsoft said 80% of the H-1B visa applications it filed last year involved employees already working at the company, rather than new hires.

The company also said foreign workers hired through the H-1B program receive compensation at the same level as workers from the United States.

According to Ellis, external, a company that helps technology firms hire skilled workers from overseas, the median salary for H-1B employees at Microsoft is $155,000.

“We look forward to providing additional information to the government,” a Microsoft spokesperson said.

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