The decision, announced on October 8 by US Labor Secretary Keith Sonderling alongside Vice President JD Vance, is part of the Trump administration’s crackdown on alleged abuses of employment-based immigration programmes.
Under the suspension, the US Department of Labor will stop accepting new applications and processing pending applications involving the eight companies under the Permanent Labor Certification (PERM) programme.
The programme allows US employers to sponsor foreign workers for employment-based green cards after demonstrating that qualified American workers are not available for the positions and that hiring foreign employees will not adversely affect domestic wages and working conditions.
The administration accused major technology companies of relying heavily on foreign workers while laying off American employees.
Vance singled out Microsoft, questioning why the company continued sponsoring foreign employees while cutting jobs in the United States.
According to the administration, the eight companies have collectively sought nearly three million foreign workers since 2009, receiving more than 230,000 H-1B visa approvals and over 100,000 permanent labor certifications.
Microsoft defended its employment practices, saying approximately 80% of its H-1B applications in the previous fiscal year involved extensions or changes of status for existing employees rather than new hires.
The suspension does not automatically cancel existing H-1B visas or prevent affected companies from continuing to employ foreign workers. However, it restricts an important pathway for employees seeking permanent residency in the United States.
The move is part of President Donald Trump’s broader immigration policy, which seeks to tighten employment-based immigration rules and prioritise American workers.
The decision could have significant implications for foreign technology professionals seeking long-term employment and permanent residency in the United States.
