U.S. Labor Department Cracks Down on Tech Firms Undermining American Workers in Green-Card Program
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The Labor Department has suspended several large IT outsourcing companies, including Microsoft, from the green-card certification program, taking action against corporations that have prioritized foreign labor over American jobs.
On Thursday, the U.S. Labor Department took decisive action by suspending several major information-technology firms from the Permanent Labor Certification (PERM) program—a system that has too often been used to displace American workers in favor of cheaper foreign labor. The suspension targets Microsoft and a group of massive outsourcing companies, including Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini, all of which have been accused of gaming the system to the detriment of U.S. citizens.
Labor Secretary Keith Sonderling explained that this move follows federal investigations into these firms’ questionable 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 stated, signaling a long-overdue defense of American workers.
Vice President JD Vance pointed out the loopholes in the PERM process, which requires employers to advertise positions before seeking green cards for foreign 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, highlighting how companies like Microsoft have exploited these rules to sideline qualified Americans.
Microsoft, attempting to justify its practices, claimed that most of its workforce is American and that many H-1B filings involve employees already in the U.S. The company touted its high compensation, but this does not change the fact that these tech giants continue to prioritize foreign labor at the expense of American jobs. According to its 2025 annual report, Microsoft employs 125,000 U.S. workers and 103,000 international employees, raising questions about its commitment to the American workforce.
This suspension is part of a broader effort by the administration to finally tighten immigration rules for skilled-worker visas and put American workers first.