Microsoft Justifies H-1B Recruitment Following US Freeze On Green Card Application Processing

Microsoft has defended its use of H-1B visas after US Vice President JD Vance suspended the company from a programme used to initiate green card applications for foreign workers, accusing it of abusing the system. In a statement issued on Thursday, the technology giant said approximately 80 per cent of the 6,000 H-1B visa applications it submitted during the previous fiscal year were intended to extend or change the immigration status of existing employees rather than recruit new workers. The response came hours after the suspension was announced, placing the company’s immigration practices under renewed scrutiny. Microsoft said it would provide the administration with additional information about its applications and reiterated its commitment to employing American workers while attracting skilled professionals from around the world.

Explaining its position, Microsoft said the vast majority of its employees in the United States were Americans. The company argued that most of its H-1B filings were related to people already working for the organisation rather than individuals being brought into the country for new jobs. Of the approximately 6,000 applications submitted during the last fiscal year, around 80 per cent involved extensions or changes in the status of existing employees, according to the company. Microsoft said these applications should not be treated as new hiring because they concerned workers already employed by the company. It added that the remaining applications for new employees involved individuals who were already legally present in the United States and had chosen to join the technology firm.

Microsoft said applications for new employees accounted for approximately one per cent of its US workforce. The company emphasised that these workers were not new arrivals to the country, countering concerns about the extent to which its recruitment depended on bringing foreign workers into the United States. It also maintained that it submitted H-1B petitions only for applicants who met the requirements of the visa category. The company’s statement sought to distinguish between applications used to retain existing employees and those associated with recruiting new staff. However, the figures and explanations were presented by Microsoft in response to the administration’s action, and the available information did not include an independent assessment of the company’s filings or the specific evidence underlying the allegations against it.

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The technology company also defended its compensation practices for employees holding H-1B visas. Microsoft said it paid its workers some of the highest salaries in the technology sector and that its wages were among the highest associated with H-1B filings. It further stated that H-1B employees received the same compensation as other employees performing comparable work. The company argued that access to skilled professionals from different countries supported its ability to develop technology and compete globally. It said its approach combined investment in the domestic talent pipeline, recruitment of American workers and the attraction of international expertise. The statement framed its use of employment-based immigration as part of a broader workforce strategy rather than a substitute for hiring US citizens.

The suspension concerns the Department of Labor’s Permanent Labour Certification programme, commonly known as PERM. The process is an important step for many employers seeking employment-based permanent residency for foreign workers. It generally requires employers to demonstrate that the relevant hiring complies with applicable labour-market protections before a worker can proceed through the employment-based green card process. A green card grants lawful permanent resident status, allowing an eligible individual to live and work permanently in the United States. PERM is separate from the H-1B visa programme, which allows qualifying US employers to hire foreign workers temporarily in specialty occupations. Consequently, the reported suspension affects the company’s participation in a route towards permanent residency, rather than automatically cancelling existing H-1B visas or removing workers already employed in the country.

The dispute highlights the distinction between temporary skilled-worker visas and the procedures used to obtain permanent residency. H-1B petitions can cover new employment as well as extensions or changes in the status of existing workers, while PERM is relevant to many employment-based green card applications. Microsoft’s response focused on the proportion of its filings that involved existing employees, the legal status of newly recruited workers and its compensation practices. The administration’s action, meanwhile, followed accusations that the company had abused the green card application system. Microsoft said it looked forward to providing additional information to officials. The available details did not specify how long the suspension would remain in force, the full basis for the allegations or what steps the company would need to take for the restriction to be reconsidered. The outcome could affect how the company manages permanent residency applications for eligible foreign employees while the matter is reviewed.

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