The U.S. government has accused Microsoft of extensively misusing the H-1B visa program to replace American workers with foreign labor, leading to the suspension of the company's ability to apply for green cards for H-1B employees. This action comes just months after Microsoft addressed and refuted similar claims of a racist conspiracy theory regarding layoffs and foreign workers.
Vice President JD Vance stated that Microsoft has "abused this system more than Microsoft" and presented statistics indicating that for every American worker laid off, the company benefited from 1.5 H-1B visas and green cards. Vance referred to H-1B visa holders as "foreign indentured servants," a characterization that frames legal immigration as a form of human trafficking.
The suspension means Microsoft can still hire foreign workers on a temporary H-1B basis but cannot pursue permanent residency for them through the green card process. Vance asserted that the administration's message to Microsoft and other corporations is clear: "We want you to employ American workers. You cannot lay off American workers and then replace them with foreign indentured servants."
Microsoft has contested these accusations, stating in a released statement that 80% of its H-1B applications in the past fiscal year were to extend or change the status of existing employees, not for new hires. The company also affirmed that employees on H-1B visas receive compensation comparable to their American counterparts for similar work.
In a notable juxtaposition, the same day the green card application privilege was suspended, President Trump presented Microsoft CEO Satya Nadella with the National Medal of Technology and Innovation. Other recipients of this honor included Elon Musk and Nvidia CEO Jensen Huang, figures who have maintained ties with the Trump administration. These events unfold amidst a backdrop of recent scrutiny over technology leaders and evolving U.S. policies on artificial intelligence, including its renaming to "Super Intelligence" and a move towards industry self-regulation.