The U.S. Department of Labor suspended Microsoft and Adobe from its Permanent Labor Certification program on Thursday, citing active federal investigations into both companies. Vice President JD Vance tied the move to Microsoft's 2025 layoffs, while the department also suspended six other companies from the same program.
The U.S. Department of Labor suspended Microsoft and Adobe from its Permanent Labor Certification program on Thursday. According to CNBC: Labor Secretary Keith Sonderling said the suspension came "due to multiple active federal investigations."
Cognizant, Infosys, Capgemini, Tata, Wipro and HCL were also suspended from the program in the same announcement. The Labor Department will not accept or process new applications from any of the suspended companies.
Suspension halts green-card applications
The Permanent Labor Certification program, known as PERM, is a step employers must generally complete before sponsoring a worker for an employment-based green card, requiring them to show no qualified US worker is available for the role. It was not immediately clear how long the suspension would last or what it would mean for employees whose permanent-residency cases are already pending.
Sonderling said the companies named in Thursday's action have requested almost 3 million foreign workers since 2009, receiving over 230,000 H-1B visa approvals and over 100,000 permanent labor certifications in that span.
Vance links the move to Microsoft layoffs
Vance criticized Microsoft specifically, pointing to the company's 6,000 layoffs in 2025 and claiming it replaced those workers with H-1B visa holders. He said the administration would keep working with Microsoft but would deny the company the ability to apply for permanent residencies until it prioritizes American workers.
Microsoft is one of the biggest employers of H-1B workers in the US. Neither Microsoft nor Adobe had commented on the suspension as of Thursday.
Nadella set for a science medal the same day
President Donald Trump is set to award the National Medal of Science to Microsoft CEO Satya Nadella and other technology CEOs on Thursday, at the same summit where the suspension was announced. Nadella moved to the United States from India in 1988 and joined Microsoft in 1992.
Sources: CNBC, Business Insider
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