U.S. Labor Department suspends several tech firms from green-card certification program

The U.S. Labor Department said on Thursday that it is suspending several major information-technology firms from participating in the Permanent Labor Certification (PERM) program, which allows foreign workers to apply for green cards. The suspension list includes Microsoft and a group of large outsourcing companies such as Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.

Labor Secretary Keith Sonderling explained that the action follows federal investigations into the firms’ use of the PERM system. > "I am hereby suspending from the Permanent Labor Certification Program some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini," he said.

Vice President JD Vance argued that the PERM process requires employers to advertise positions before filing for green cards, noting that companies often cite a lack of responses from U.S. workers. > "They'll put an advertisement in a small-town newspaper and say that no one responded, then they use that to replace American workers," Vance said, adding that Microsoft has used the system extensively.

Microsoft responded that most of its workforce is American and that many of its H-1B filings involve employees already residing in the United States. The company said it offers high compensation and wages that rank among the highest for H-1B holders. According to its 2025 annual report, Microsoft employs 125,000 U.S. workers and 103,000 international employees.

The move is part of a broader effort by the administration to tighten immigration rules for skilled-worker visas.