Overview
- The Department of Labor announced it will not accept new or process pending PERM applications for Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL and Capgemini after a government review.
- Vice President J.D. Vance accused Microsoft of replacing U.S. employees with H-1B hires while the company countered that about 80 percent of its recent H-1B filings were extensions or status changes for existing staff.
- The suspension blocks a key employer-led step toward employment‑based green cards but does not by itself cancel existing H-1B visas or ban new H-1B petitions from the named firms.
- Labor’s inspector general has set up a visa‑fraud strike team and officials have issued subpoenas to nine universities as the Justice Department coordinates potential prosecutions.
- The move could force legal challenges, disrupt long-term plans for H-1B workers near the six‑year limit, and shift hiring or relocation choices for firms and Indian tech professionals working in the U.S.