Vice President Vance announced a significant policy change for Microsoft concerning the employment of foreign workers. On Thursday, he stated that these workers would no longer qualify for permanent resident status in the U.S. via an employer-based program. Vance accused Microsoft of misusing this process.
The company is now suspended from the permanent labor certification program known as PERM. This program assists companies in hiring foreign workers for permanent roles in the U.S. Vance expressed concern over Microsoft’s extensive use of the program. He emphasized that the administration wants businesses to prosper in the U.S. but with a priority on hiring American workers.
He further highlighted that Microsoft gained from the PERM program as well as the H-1B visa program last year, while simultaneously laying off a large number of American employees. The H-1B visa facilitates the hiring of international professionals for specialized positions.
In response, Microsoft asserted that most of its U.S. workforce comprises American employees, citing that 80% of its H-1B visa requests last year were related to either status changes or extensions for current staff. The company noted that applications for new visas were for individuals already legally residing in the U.S.
“Microsoft only files H-1B petitions for those who meet the rigorous standards of this visa category,” a spokesperson clarified. “We compensate our employees amongst the highest in the tech sector. H-1B employees receive pay equal to employees performing comparable work,” the spokesperson added.
Labor Secretary Keith Sonderling revealed that other IT companies like Adobe, Cognizant, and Infosys also faced suspensions from the PERM program, joining Microsoft in these recent developments.