The US government is suspending eight major IT companies from a programme linked to green cards for skilled foreign workers. The move was announced by senior US officials on Thursday. Officials said the companies were being suspended over alleged fraud and as part of an effort to encourage companies to hire more American workers.
The companies include some of the biggest names in the global IT industry. The full list named by US Labor Secretary Keith Sonderling is:
- Microsoft
- Adobe
- Cognizant
- Infosys
- Tata
- Wipro
- HCL
- Capgemini
US wants more American workers
Microsoft and Adobe were among the companies named in the suspension. Senior US officials said the government was taking action against these companies as part of its wider push to ensure American workers get more job opportunities, according to Reuters.
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Deep Dive
Which eight IT companies were suspended from the US green card programme?
What does the suspension mean for new and pending green card applications?
Why were the IT companies suspended from the PERM programme?
US Vice President JD Vance directly addressed Microsoft while announcing the policy. He said Microsoft is a major American company but must make sure it hires American workers. Vance said, “You're a great American company, but you've got to hire great American workers”, as cited by Reuters.
Which IT firms are suspended?
Labor Secretary Keith Sonderling said the action also covers several other major IT companies. He specifically named Cognizant, Infosys, Tata, Wipro, HCL and Capgemini along with Microsoft and Adobe, according to Reuters.
{{/usCountry}}Labor Secretary Keith Sonderling said the action also covers several other major IT companies. He specifically named Cognizant, Infosys, Tata, Wipro, HCL and Capgemini along with Microsoft and Adobe, according to Reuters.
{{/usCountry}}The US government will stop both new and pending applications from these companies under the programme. Sonderling said the government will not accept new applications or process pending permanent labour certification applications involving the companies.
What is the PERM program?
The programme at the centre of the action is called PERM. Under the PERM process, a company must get certification from the US Department of Labor before it can file petitions for most employment-based green cards.
PERM is meant to show that an American worker is not available for a particular job. Employers seeking certification have to establish that there is no qualified, willing and available US worker for the specific position, according to Reuters.
The suspension could therefore affect the green card process for skilled foreign workers employed by these companies. The companies cannot have new or pending permanent labour certification applications processed while the suspension applies, based on Sonderling's announcement.