San Jose's Adobe Among 8 Companies Barred From Green Card Sponsorship; Stanford and UC Davis Face Visa Probe

The Trump administration on Thursday suspended eight large employers, including San Jose-based software maker Adobe, from the federal program that is the first step toward most work-based green cards. It also opened investigations into exchange-visitor visas at nine universities, three of them in California.

Who is affected

Labor Secretary Keith Sonderling said the department will not accept new permanent labor certification, or PERM, applications from the companies, or keep processing pending ones. Besides Adobe, the list includes Microsoft and the IT outsourcers Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. Sonderling said the companies had received more than 230,000 H-1B approvals and over 100,000 labor certifications.

Vice President JD Vance, who announced the Microsoft action, singled out that company, saying it laid off 6,000 American workers last year while receiving 6,300 H-1B visas and nearly 3,000 green cards. Microsoft said about 80% of its H-1B filings were for people it already employed and that it pays visa holders the same as other workers. Adobe did not immediately respond to Reuters' request for comment. Officials described the move as part of a fraud investigation, and Attorney General Todd Blanche said criminal charges are possible. No fraud has been proven.

What it means for tech workers

H-1B status itself is not suspended, so workers can keep their jobs. But the freeze can still bite. Immigration law firm Ellis notes that many H-1B holders need a PERM case on file to stay past the visa's six-year limit, and that a stalled filing can cost workers their place in the green card line. Vance said the suspension would last as long as needed, and no end date has been set. Under the rule officials are believed to be using, a first hold can last up to 180 days.

Universities under review

Labor Inspector General Anthony D'Esposito said his office is investigating possible J-1 visa fraud at Stanford, UC Davis, Caltech, Harvard, Yale, Brown, MIT, Arizona State and the University of Pittsburgh, and has already issued subpoenas. Officials say the schools used exchange programs to bring in workers below American wages. No school has been charged or suspended, and current J-1 visitors' status has not changed.

For the Bay Area, where immigrant engineers fill a large share of tech jobs, the action is the broadest move yet against skilled-worker visas, and more employers could be added.