What is PERM? Why Trump suspended Microsoft and Indian IT firms from the green card program | Today’s news
Donald Trump’s administration has suspended Microsoft and several major technology and IT services companies, including Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Cognizant, from a US program that can help skilled foreign workers transition to permanent residency.
The program, known as Permanent Labor Certification, or PERM, is an important step in the employment-based green card process for many foreign workers. The US administration claims that some companies abused the system to replace American workers with cheaper foreign labor.
Vice President JD Vance announced the move Thursday (Oct. 8), accusing the companies of using foreign worker programs at the expense of American workers. The action comes as the Trump administration expands its crackdown on skilled foreign labor and immigration programs.
What is PERM?
Quick answers to key questions
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PERM, or Permanent Labor Certification, is a US Department of Labor process through which an employer seeks certification to permanently employ a foreign worker. It is an important step in some employment-based green card cases.
The employer identifies a permanent full-time position, determines its requirements, and obtains a prevailing wage determination. After hiring, the employer submits a PERM application to the Department of Labor for review.
The Trump administration said companies were abusing the system and using foreign workers to replace or undermine American workers. The Department of Labor said it will not accept new or process pending PERM applications related to suspended firms.
The companies named included Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
No. PERM certification is a labor certification step in the broader employment-based green card process, not the green card itself. H-1B is a temporary employment status, while PERM is for permanent employment.
PERM stands for Permanent Labor Certification.
This is a process administered by the US Department of Labor that allows an employer to apply for certification to permanently employ a foreign worker in the United States.
The process is initiated by the employer rather than the individual worker.
The basic purpose of PERM is to determine that there are insufficient qualified and available American workers for a particular job and that the hiring of a foreign worker will not adversely affect the wages and working conditions of similarly employed American workers.
PERM was introduced in 2005 to replace the older paper-based labor certification system known as Alien Employment Certification, with the goal of streamlining the process.
How does PERM work?
The process generally involves several stages.
1. The employer identifies permanent employment
The U.S. employer must have a permanent, full-time position that it wishes to fill with a foreign worker.
The employer sets the job description and minimum requirements, including education, experience and other qualifications.
2. The prevailing wage is determined
The employer usually obtains a prevailing wage determination from the Department of Labor.
This sets a wage level for a specific occupation and location and is intended to ensure that the employment of a foreign worker does not depress wages for American workers.
3. The PERM application is filed
After completing the required hiring process, the employer submits a PERM application to the Department of Labor.
The DOL reviews the application and certifies it if it is satisfied that the requirements have been met.
4. The green card process follows
PERM approval alone does not grant a green card.
Instead, it is a labor certification step in a broader employment-based immigration process. After PERM certification, the employer can generally proceed with the appropriate immigration petition and subsequent green card process, subject to other requirements and visa availability.
Not every employment-based green card category requires PERM.
Read also | US green card holder mother denied B1/B2 visa so she is confused
Why did Trump suspend the program for these companies?
The Trump administration says companies are using the system to replace American workers with foreign workers.
Vance specifically singled out Microsoft, claiming the company laid off thousands of American workers while obtaining thousands of H-1B visas and green cards.
“Our message to Microsoft is: You’re a great American company, but you need to hire great American workers,” Vance said.
He also described H-1B foreign workers as “foreign servants” and argued that their immigration status can make them dependent on their employers.
The administration’s move targets Microsoft and Adobe, as well as major IT and outsourcing companies including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.
The US government has said it will not accept new PERM applications or process pending applications for some companies.
PERM vs H-1B: What’s the Difference?
The two programs are related but serve different purposes.
The H-1B is a temporary work visa that allows foreign workers in skilled, specialized occupations to work in the US, usually for up to six years, subject to applicable regulations.
PERM, on the other hand, is a labor certification process tied to permanent employment and can be an important step toward an employment-based green card.
H-1B = temporary employment status
PERM = Permanent Employment Certificate
Green card = permanent residence in the USA
(With inputs from AP, Reuters)
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