White House Halts Microsoft Participation in Foreign Worker Hiring Program

The White House has prohibited Microsoft and several other technology firms from employing skilled international workers on a permanent basis through a well-known visa program. This decision follows accusations of fraud linked to the H-1B visa program and the process that allows foreign workers to attain permanent residency in the United States.

During a press conference, Vice President JD Vance criticized Microsoft, claiming the company has been substituting American employees with “foreign indentured servants.” Vance asserted that this practice exemplifies a broader issue within the tech industry, mentioning other companies like Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini.

The U.S. Department of Labor will cease processing any new or pending applications for the Permanent Labor Certification Program (PERM) from Microsoft and the other identified firms, according to Secretary of Labor Keith Sonderling.

Sonderling described the companies, along with U.S. universities, as having turned into “visa mills” that overload the job market with foreign talent.

The H-1B visa program, which serves as a precursor for future applicants looking to enter the PERM process, has an annual cap of 85,000 visas. A Microsoft spokesperson emphasized that the majority of H-1B applications from the past fiscal year were for current employees at comparable pay rates to local hires.

Despite the backlash, Microsoft maintains that “the vast majority of Microsoft employees in the United States are Americans.” The software giant employs over 200,000 individuals globally.

Vance pointed out that Microsoft laid off around 6,000 workers while simultaneously filing for 6,800 H-1B visas, implying a correlation between foreign hiring and domestic layoffs. The Microsoft representative countered this by stating that 80% of the company’s H-1B filings were related to existing employees rather than new recruitments.

Furthermore, they noted that international workers hired through the H-1B program receive salaries equivalent to their American counterparts. According to Ellis, a company assisting tech firms with foreign hiring, the average salary for an H-1B employee at Microsoft is approximately $155,000.

The Microsoft spokesperson expressed optimism, stating, “We look forward to providing the Administration with additional information.” This sentiment suggests a willingness to engage constructively with the government on this matter.