PERM vs H-1B Visa: What Trump Admin’s Suspension of Microsoft, TCS and Other IT Firms Mean for Green Card Applicants | Today’s news
The US government’s decision to suspend Microsoft, Adobe and six other major technology and IT services companies from the Permanent Labor Certification (PERM) program has raised concerns about the impact on foreign workers seeking permanent residency.
The suspension, announced by the Trump administration on Thursday (Oct. 8), prevents affected companies from submitting new PERM applications and halts processing of pending applications, according to US officials. The administration accused the companies of abusing the system to replace American workers with lower-paid foreign workers.
The eight companies are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini.
Quick answers to key questions
•5 QUESTIONS
The H-1B is a temporary, employer-sponsored work visa for eligible professionals. PERM is a labor certification that employers generally need for certain employment-based green card applications.
The eight companies are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini.
No. The suspension applies to PERM applications and does not, by itself, cancel existing H-1B visas.
The Labor Department cited several ongoing federal investigations. The administration also accused the companies of using the labor certification system to replace American workers with lower-paid foreign workers.
No. PERM is an important step for many EB-2 and EB-3 applicants, but some routes may be exempt, including some cases involving extraordinary ability or the EB-2 National Interest Waiver.
The move is part of a broader crackdown by the administration against skilled foreign workers following its efforts to impose higher fees on certain H-1B visa applications. However, the suspension of PERM and the H-1B program serve other purposes, and the latest measures alone will not cancel existing H-1B visas.
Here’s how the two immigration mechanisms differ and what the suspension could mean for foreign workers.
What is PERM?
The Permanent Labor Certification Program, commonly known as PERM, is a process administered by the US Department of Labor (DOL) that allows eligible employers to sponsor foreign workers for employment-based green cards.
PERM, which was introduced in 2005, streamlined the former labor certification system. It requires employers to demonstrate that there are insufficient qualified and available American workers for the position and that hiring the foreign worker will not adversely affect the wages and working conditions of similarly employed American workers.
The process is initiated by the employer, not the foreign worker. After labor certification is approved, the employer can generally proceed with the appropriate employment-based immigrant petition, followed by the worker’s application for permanent residency if eligible.
PERM is an important step for many employment-based green card applicants, especially those seeking permanent residency through the EB-2 and EB-3 categories. However, not every employment-based green card pathway requires PERM. Certain applicants, including some individuals with exceptional abilities and those eligible for the EB-2 National Interest Waiver, may be eligible for waivers.
What is an H-1B visa?
The H-1B is a temporary, employer-sponsored U.S. work visa that allows companies to employ foreign professionals in specialized occupations requiring relevant expertise and qualifications.
Among the biggest users of the program are technology companies.
H-1B status is generally available for an initial period of up to three years and can typically be extended for a maximum of six years, subject to applicable rules and exceptions.
Unlike PERM, the H-1B program does not directly grant permanent residency. However, H-1B visa workers can subsequently use employment-based green cards through employer sponsorship, which often includes PERM labor certification.
This means that both processes can be part of the same worker’s immigration journey: H-1B status allows for temporary employment, while PERM can help create the basis for an employer-sponsored green card application.
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Why did the Trump administration suspend the companies?
Vice President JD Vance accused Microsoft and other companies of using the labor certification system to replace American workers with foreign workers.
Citing Microsoft’s layoffs and immigration filings, Vance claimed the company laid off 6,000 American workers last year while also obtaining 6,300 H-1B visas and nearly 3,000 green cards.
He said companies sometimes advertise jobs in a way that makes it difficult to attract applicants, and then use the lack of responses to justify hiring foreign workers.
“Our message to Microsoft is: You’re a great American company, but you need to hire great American workers,” Vance said.
Microsoft has disputed the implication that its H-1B filings primarily represent new foreign hires. The company said about 80% of the H-1B petitions it filed in the last fiscal year were to extend or change the status of existing employees.
The administration’s move also comes amid a broader effort to tighten controls on employment-based immigration. It sought a proposed $100,000 fee for certain new H-1B petitions, though the measure faced legal challenges and a lawsuit.
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