US suspends Microsoft, major IT firms from key green card program

WASHINGTON, Oct 8 (Reuters) - The US government is suspending Microsoft , Adobe and several large IT firms from a program that allows skilled foreign workers to gain permanent residency, senior US officials announced on Thursday, citing alleged fraud, and as part of an effort to push companies to hire more Americans.

"Our message to Microsoft is: You're a great American company, but you've got to hire great American workers," US Vice President JD Vance said.

Secretary of Labor Keith Sonderling added that some of the largest IT firms in the world would also be suspended from that program, including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.

"We will not accept any new or process any pending permanent labor certification applications involving these companies," Sonderling said.

Microsoft did not immediately respond to a request for comment.

Under the PERM process, employers seek certification from the Department of Labor that there is no qualified, willing or available US worker for a specific job. It's a step required before filing petitions for most employment-based green cards.

Vance also said nine universities, including Harvard, Yaleand Stanford, would be investigated for allegedly bringing in international students to undercut American wages. Labor Inspector General Anthony D'Esposito said subpoenas had already been served.

"We will investigate whether foreign influence, improper financial relationships, or visa abuse are compromising federally funded research," D'Esposito said. "If an American university is breaking the law to save $1 while exposing American research to a foreign adversary, that is not academic excellence. It's institutional betrayal."

(Reporting by Dan Rosenzweig-Ziff; Editing by Mark Porter and Sanjeev Miglani)