The Trump administration suspended Microsoft, Adobe, Cognizant Technology Solutions, Infosys, Tata, Wipro, HCL Technologies, and Capgemini from the Permanent Labor Certification Program (PERM). The suspension is based on abuse allegations, alongside multiple federal investigations. The suspension is indefinite, meaning it will not end until the Trump administration is satisfied. The PERM program specifically requires employers to prove there are no qualified U.S. workers available before they can sponsor a foreign worker for permanent residency. This does not immediately concern already approved H-1B visas and green cards, but instead makes it far more difficult to attain permanent residency. In addition, the aforementioned companies are unable to submit new applications, and existing applications will not move forward.
Microsoft denied these allegations. They state 80% of their H-1B Visa applications were made in order to change the status of active Microsoft employees. Furthermore, they state that only 1% of their U.S. workforce have H-1B visas. While the immediate ramifications of the PERM suspensions are considerable, it is equally important to look at where this could eventually lead, both for the suspended companies and others. This is far from the beginning of the Trump administration’s crusade against H-1B workers. The most notable and recent action is an executive order from President Trump on September 18th. This executive order directed federal agencies to investigate whether or not employers have either planned or carried out layoffs of U.S. workers in similar situations to H-1B workers. This directive has implications for the processing of H-1B petitions, labor condition applications, and visa insurance.
It is crucial that talent acquisition, workforce planning, employee relations, and legal teams coordinate in these circumstances. Maintaining documentation of any and all workforce changes – from recruiting efforts to job requirements to rationale for workforce decisions – is equally important. These suspensions are not the start of the Trump administration’s efforts against foreign workers. They will more than likely be far from the last. It is absolutely vital going forward that companies are prepared for government inquires and investigations.
Finally, the DOL is proposing regulations to revise the PERM program. This proposal is currently under review by the Office of Management and Budget at the White House. The proposal is expected to focus on minimum recruitment standards, rules concerning U.S. worker layoffs, and employer nondiscrimination requirements.
As always, ILBSG actively monitors ongoing U.S. immigration news. If you have questions about any U.S. immigration related issue, contact us. Working with an experienced attorney ensures you get the right advice based on the most recent laws. In an ever-evolving immigration policy landscape, it’s particularly critical you get the right advice.