14 hrs ago
US Suspends Labour Certification Processing for Major Tech Firms
The US government has stopped handling some job-related applications connected to several large technology companies.
These applications are for employers seeking to hire workers from other countries or keep them permanently.
The companies named include several Indian IT firms and major technology businesses.
Labor Secretary Keith Sonderling said the decision followed investigations.
Vice President JD Vance said the change would prioritize American workers.
The administration says the H-1B programme has been abused.
The article says many H-1B workers have historically been Indian technology professionals.
The government had also proposed a large fee for new H-1B applications, but a federal court struck down that earlier proposal.
The US said it would stop accepting new or processing pending permanent labour certification applications involving several named technology companies.
The companies named include Infosys, Wipro, Cognizant, HCLTech, Tata Consultancy Services, Microsoft, Capgemini and Adobe.
Labor Secretary Keith Sonderling said the move followed ongoing investigations by the Department of Labor inspector general.
Sonderling said that since 2009, the companies had requested about 3 million foreign workers and received more than 230,000 H-1B approvals and over 100,000 permanent labour certifications.
The action is part of the Trump administration’s effort to curb the H-1B programme; earlier proposals included a $103,265 fee on new petitions, which a federal court had struck down.
- Who
- The US government, including Labor Secretary Keith Sonderling and Vice President JD Vance, and the named technology companies.
- What
- The US suspended acceptance and processing of permanent labour certification applications involving the named firms.
- Where
- The United States.
- When
- Thursday; the article does not provide a date.
- Why
- The administration said the move was intended to address alleged abuse of the H-1B programme and prioritize American workers.
Administration’s rationale
Potentially affected workers and employers
Effect of restricting applications
Administration’s rationale
Sonderling and Vance argued the move would protect American workers and address abuse of the H-1B programme.
Potentially affected workers and employers
The article describes the action as a major blow to Indian IT services companies and says H-1B has historically been used by technology firms, with many recipients being Indian tech workers. It does not report responses from the companies.
Key facts
- Applications affected
- New and pending permanent labour certification applications involving the named companies
- Companies named
- Infosys, Wipro, Cognizant, HCLTech, Tata Consultancy Services, Microsoft, Capgemini and Adobe
- Period cited
- Since 2009
- Foreign workers requested
- Approximately 3 million, according to Sonderling
- H-1B approvals
- More than 230,000, according to Sonderling
- Permanent labour certifications
- More than 100,000, according to Sonderling
- Earlier proposed fee
- $103,265 on new H-1B petitions; a federal court struck down the proposal
Quotes
Keith Sonderling
US Secretary of Labor
“This administration knows that American workers are the best and brightest in the world. These jobs that were stolen from them should have gone and will now go to Americans first, not foreigners and especially not foreign fraudsters. And today, thanks to President Trump, Vice President, and the task force, we are cutting off the head of the snake — the companies that have enabled this abuse for decades.”
financialexpress.com
“If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants.”
financialexpress.com
Sources
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