2 hrs ago
US Suspends Labor Certification Program for Microsoft, Indian IT Firms
The US government says it will stop some companies from using a program that helps foreign workers seek permanent residency.
Microsoft and several large Indian IT companies were named.
Vice President JD Vance accused companies of abusing the system, but the article does not report findings from the investigations.
Labor Secretary Keith Sonderling said several federal investigations are underway.
The suspensions are expected to last until the administration believes its concerns have been addressed.
The companies did not immediately respond to requests for comment.
Business groups say tougher immigration rules could make it harder for companies to find workers.
The administration says companies should do more to train and hire US workers.
The Trump administration said it would indefinitely suspend several companies from the Permanent Labor Certification Program.
The companies named included Microsoft, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
Vice President JD Vance alleged widespread abuse and said companies made illegitimate representations when applying.
Labor Secretary Keith Sonderling said multiple federal investigations into the matter were active.
Business groups have warned that the administration’s immigration crackdown could threaten companies’ labor supply and affect growth.
- Who
- The Trump administration, including Vice President JD Vance and Labor Secretary Keith Sonderling, and the companies named in the suspensions.
- What
- The administration announced indefinite suspensions from the Permanent Labor Certification Program, citing alleged abuse.
- Where
- Washington, United States.
- When
- Thursday; the article does not specify a date.
- Why
- The administration alleges companies made illegitimate representations and says it wants employers to hire and train more US workers.
Administration’s position
Business concerns
Use of the visa program
Administration’s position
JD Vance alleged companies abused the system through illegitimate representations and urged them to stop relying on foreign workers for jobs he said US workers could do.
Business concerns
Business groups have warned that the immigration crackdown could threaten employers’ labor supply and affect growth.
Workforce priorities
Administration’s position
The administration is pressing technology companies to do more to train and hire US workers.
Business concerns
The article says technology companies have relied on foreign workers, including H-1B visa holders, and business groups are concerned about the effect of restrictions.
Key facts
- Program
- Permanent Labor Certification Program, which allows US employers to help sponsor foreign workers for permanent residency.
- Suspensions
- Indefinite, according to JD Vance, pending the administration’s assessment that its concerns have been addressed.
- Companies named
- Microsoft, Cognizant Technology Solutions, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
- Investigations
- Keith Sonderling said multiple active federal investigations were underway.
- Market reaction
- Cognizant shares fell nearly 1.4%; Infosys and Wipro American depositary receipts each fell more than 3.5% in Thursday trading.
- Additional inquiries
- The administration also announced investigations into J-1 visa holders at nine top colleges.
Quotes
JD Vance
US vice president
“The fraud is that they’re making representations when applying for this program that are fundamentally illegitimate and therefore ultimately illegal.”
livemint.com
“Stop defrauding the American worker. Stop importing an indentured servant to do a job that an American worker would happily do.”
livemint.com
Sources
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