US halts green card process for eight tech companies amid visa fraud probe

Washington: The Donald Trump administration has suspended the processing of employment-based green card applications filed by eight major technology and outsourcing companies, including Indian IT giants Infosys, Tata, Wipro and HCL.

The decision, announced on Thursday as Vice President JD Vance unveiled a broader crackdown on alleged visa fraud, also affects Cognizant, Capgemini, Microsoft and Adobe.

The companies have been barred from submitting new applications under the Permanent Labour Certification programme, commonly known as PERM. The Labour Department has also stopped processing applications already filed by them.

US Labour Secretary Keith Sonderling announced the action at a press conference led by Vance, saying it was linked to ongoing criminal and federal investigations.

“Due to ongoing criminal investigations led by the Department of Labour’s Inspector General Anthony DiEsposito, I am hereby suspending from the Permanent Labour Certification Program some of the largest IT outsourcing firms in the world,” Sonderling said, naming Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.

He said Microsoft and Adobe had also been included because they were facing multiple active federal investigations.

“We will not accept or process any pending permanent labour certification applications involving these companies,” Sonderling said.

PERM certification is a key stage in the process through which US employers sponsor foreign workers for employment-based permanent residence. The employer generally has to demonstrate that hiring the foreign worker will not adversely affect US workers.

According to figures presented by Sonderling, the companies named in the order had collectively sought nearly three million foreign workers since 2009. They had also obtained more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications.

The administration did not disclose company-specific evidence or provide details of the alleged violations during the press conference.

Vance accused some employers of using the H-1B programme to replace American workers with cheaper foreign labour. He said the visa system was intended for companies seeking highly skilled workers for positions that could not be filled domestically.

“The H-1B visa programme is meant to allow companies to bring in really the best of the best from outside the United States of America for positions that are completely impossible to fill with American workers,” Vance said.

He specifically criticised Microsoft, alleging that the company had laid off 6,000 American employees while receiving approval for 6,300 H-1B visas and nearly 3,000 green cards.

Vance said the administration wanted companies to change their recruitment practices instead of shifting operations away from the US.

Asked how long the PERM suspension would remain in effect, he said it would continue “as long as it needs to”. He added that the administration had the authority to extend the measure indefinitely but hoped the companies would alter their conduct.

The Justice Department separately said it was investigating companies suspected of giving preference to foreign workers over American employees.

Attorney General Todd Blanche said the investigations could lead to criminal prosecutions and civil lawsuits.

The action is likely to affect Indian technology companies and professionals, many of whom depend on US employment-based immigration programmes to work on assignments for American clients.

The H-1B visa allows foreign nationals to work temporarily in specialised occupations. PERM certification, however, is part of a separate process used by employers seeking permanent residence for foreign employees.

The latest order applies to PERM applications involving the eight named companies. It does not automatically cancel existing H-1B visas or green cards.

(Inputs from IANS)