The US administration has suspended Microsoft’s access to a labour- certification programme used by employers to sponsor skilled foreign workers for permanent residency, citing an ongoing investigation into the company’s hiring practices.
The decision was announced by US Vice President JD Vance, who said the move was intended to protect American workers from unfair wage competition. However, officials did not provide evidence that Microsoft had laid off US employees and replaced them with foreign workers through the H-1B visa programme.
The suspension affects Microsoft’s ability to use the US Department of Labour’s certification process, which requires employers to demonstrate that qualified American workers are not available for a position before sponsoring a foreign employee for a green card. The restriction could complicate permanent residency applications for eligible foreign workers, although it does not prevent the company from employing H-1B visa holders.
Labour Secretary Keith Sonderling also announced the suspension of Adobe from the programme, citing active investigations. Major IT services companies, including Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL and Capgemini, have also been barred from participating.
The department has not detailed the allegations against Microsoft and Adobe or indicated how long the suspensions will remain in place.
Microsoft said it was cooperating with the administration and that its H-1B petitions largely supported existing employees seeking extensions or changes in visa status. The company also said its petitions complied with the requirements of the visa category and that its wages were among the highest in the technology sector. Adobe did not immediately respond to requests for comment.
Microsoft is a major user of the H-1B programme. Federal data cited in the report show that the company received approval to hire approximately 3,700 H-1B workers in fiscal 2026 through June 30 and had secured around 54,000 petition approvals over the preceding decade.
The move comes amid a broader immigration crackdown by the administration, which has also proposed a $103,000 fee for employers seeking H-1B workers.
The restrictions could affect employers’ ability to retain overseas talent over the long term, as access to permanent residency allows foreign workers greater independence from employer-sponsored immigration status.
The administration is also investigating the possible misuse of the J-1 cultural exchange visa programme at nine universities. Officials have not publicly detailed the specific allegations, while several institutions have said they are cooperating with the investigations.
