US Suspends Infosys, Microsoft, Wipro, HCL, Cognizant, Adobe & 2 More IT Firms From Work Program: Here’s Why | Today’s news
The United States on Thursday (Oct 8) suspended several major technology companies, including Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe, from the permanent labor certification program, citing concerns about hiring foreign workers.
The decision was announced by US Secretary of Labor Keith Sonderling along with Vice President JD Vance and head of the US Anti-Fraud Task Force.
“I hereby suspend participation in the permanent labor certification program of some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini,” Sonderling said.
Separately, the Labor Department announced that Microsoft and Adobe were also suspending participation in the program.
No new applications for admission
As part of the move, the US Department of Labor will not accept new applications for permanent labor certification involving companies or processing applications that are already pending.
“We will not be accepting any new or processing any pending applications for permanent labor certification related to these companies,” Sonderling said.
The Permanent Labor Certification Program, commonly known as PERM, is a key pathway for US employers looking to hire foreign workers on a permanent basis. Labor certification is generally required before an employer can sponsor an eligible foreign worker for certain employment-based green cards.
The suspension could therefore affect companies seeking permanent residency for foreign employees through the program.
US cites foreign worker numbers
Sonderling said the companies covered by the event have collectively applied for nearly three million foreign workers since 2009.
“Since 2009, these companies alone have claimed nearly three million foreign workers. They have received more than 230,000 H-1B visa approvals and more than 100,000 permanent labor certifications,” he said.
The Secretary of Labor argued that the extent of the hiring of foreign workers came at the expense of American workers.
“That’s hundreds of thousands of jobs that have been taken away from American workers,” Sonderling said.
His remarks signal a broader focus by the Trump administration on favoring American workers and scrutinizing programs used by companies to employ foreign nationals.
