The US Labour Secretary, Keith Sonderling, announced the suspension of several major IT outsourcing firms from the Permanent Labor Certification Program. The suspended companies include Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft, and Adobe. According to the US Labour department, the suspension is due to multiple active federal investigations.
The US Vice President, Vance, targeted tech giants for alleged abuse of the H1B program, stating that the program has become rife with fraud. He claimed that companies were bringing in foreign workers for positions that could be filled by American workers. The Vice President specifically mentioned Microsoft, alleging that the company had laid off 6,000 American workers while benefiting from 6,300 H-1B visas and nearly 3,000 green cards.
The US Labour Secretary further stated that the department would not accept new applications or process pending permanent labor certification applications involving the suspended companies. Sonderling said that the companies named had collectively sought millions of foreign workers and received hundreds of thousands of H-1B visa approvals and permanent labor certifications. Since 2009, these companies have requested almost 3 million foreign workers.
The announcement comes a day after the US Department of Homeland Security proposed new fees for F-1 nonimmigrant students seeking to participate in Optional Practical Training (OPT). The proposed rule aims to reduce the flow of cheap labor into the United States, combat fraud and abuse, and make it easier for American citizens to compete in the job market. The proposed fees would be $70,000 per F-1 nonimmigrant student for initial OPT and $30,000 for any subsequent OPT.
According to DHS, the proposal is aimed at upskilling OPT to require foreign students to justify their worth to employers. American workers should not have to compete against a program that has been turned into a pipeline for cheap foreign labor. The proposed changes followed fraud and abuse identified by the Student and Exchange Visitor Program, including schemes involving problematic worksites and 'pay-to-stay' visa arrangements.
The proposed fees would be paid by SEVP-certified schools before designated school officials recommend students for OPT in the Student and Exchange Visitor Information System and before students apply for employment authorization with USCIS. The collected fees would be deposited in the US Treasury. The department will accept public comments on the proposed rule from October 8 through November 9.
The US Government's move is aimed at protecting American workers and strengthening the integrity of the immigration system. The suspensions and proposed rule changes are part of the Trump Administration's efforts to prioritize American workers and prevent abuse of the immigration system. The administration's ongoing investigation led to Microsoft's suspension from the program, and the company will no longer be able to take those visas and apply for permanent status.
Key points
- The US Government has suspended several major IT outsourcing firms from the Permanent Labor Certification Program due to alleged abuse of the H1B program.
- The suspensions are part of the Trump Administration's efforts to prioritize American workers and prevent abuse of the immigration system.
- The US Department of Homeland Security has proposed new fees for F-1 nonimmigrant students seeking to participate in Optional Practical Training (OPT) to reduce the flow of cheap labor into the United States.
