Microsoft has been suspended from applying for green cards under the H-1B visa program, according to an announcement made Thursday by Vice President JD Vance. The suspension follows accusations that Microsoft abused the system to replace American workers with foreign labor.
Key Takeaways
A federal suspension bars Microsoft from applying for green cards through the H-1B visa program, citing alleged abuse of the system to replace American workers.
- US suspends Microsoft and Adobe from green card applications under H-1B program
- Labor Department accuses companies of systemic fraud in hiring practices
- Microsoft denies allegations, says 80% of visas were for existing employees
- Administration claims laid-off American workers replaced by foreign hires
Source Claims Check
1 Difference Found| Claim | Status | Reason | |
|---|---|---|---|
| Accusations Against Microsoft For Laying Off American Workers | 1 Difference | The Guardian and PBS report accusations against Microsoft, while Al Jazeera and UPI highlight Microsoft's response. | ▼ |
| Companies Suspended From Green Card Applications Under H-1b Program | Broad Agreement | The US suspends Microsoft and Adobe from the Permanent Labor Certification program. | |
| Allegations Of Systemic Fraud In Hiring Practices | Broad Agreement | The Labor Department accuses companies of systemic fraud. |
The Labor Department also announced suspensions for Adobe and several other major tech firms, including Infosys and Tata Consultancy Services. According to Labor Secretary Keith Sonderling, these companies have been involved in multiple federal investigations related to visa fraud. "Since 2009, just these companies alone have requested almost 3 million foreign workers," Sonderling said.
Vance claimed that Microsoft laid off 6,000 American workers while obtaining 6,300 H-1B visas and nearly 3,000 green cards. "For every worker that Microsoft laid off, they replaced that worker with one-and-a-half foreign indentured servants," Vance said at a White House news conference.
Microsoft responded by stating that the vast majority of its employees are American and that 80% of its H-1B applications were for extensions or status changes for existing employees. "We pay our employees some of the highest compensation in the tech sector," Microsoft said in a statement, adding that it only files petitions for those who meet rigorous visa standards.
The suspension comes amid broader scrutiny of the H-1B program by the Trump administration, which has long argued that such programs undercut American workers. The Department of Labor also announced an investigation into alleged J-1 visa fraud involving nine major universities, including Harvard and MIT.
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