U.S. halts PERM processing for eight technology companies

The Labor Department said it would stop processing new and pending permanent labor certification applications involving Microsoft and seven other technology companies, suspending a route through which employers can sponsor foreign workers for permanent residency. The announcement followed allegations by Vice President JD Vance that the companies had abused visa programs to replace American workers. The claims have not been established by investigative findings in the reports, and Microsoft disputes Vance’s characterization. Labor Secretary Keith Sonderling announced the suspension at a White House briefing on October 8. The companies named were Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. The affected applications are under the Permanent Labor Certification, or PERM, program. Employers generally use the process to demonstrate that qualified U.S. workers are unavailable for a position before sponsoring a foreign worker for a green card. Vance said companies had advertised jobs in ways that discouraged American applicants, then used a lack of responses to justify hiring foreign workers.