In a sweeping move, US Vice President JD Vance has leveled serious accusations against major technology corporations, including Microsoft, alleging systematic exploitation of the H-1B visa system. Vance labeled foreign employees brought in by outsourcing firms as "indentured servants" and asserted that companies are replacing American workers with lower-paid foreign staff.
This rhetoric accompanies a significant crackdown by the Trump administration, which has suspended Microsoft and several global tech giants from the primary program used to sponsor foreign workers for employment-based green cards. These suspensions stem from allegations of fraud and wage suppression within the H-1B program.
Microsoft Singled Out for Alleged Misuse
Vance highlighted Microsoft's workforce decisions in 2025 as a prime example of corporate misuse. He stated that Microsoft laid off 6,000 American employees after certifying to federal authorities that it could not find qualified domestic workers for those roles. During the same period, the company reportedly secured approval for over 6,000 H-1B visas and filed 3,682 applications for permanent labor certification (PERM).
Federal reviews subsequently indicated that nearly 1,000 of these permanent residency applications matched positions previously held by the laid-off American staff. In response to these findings, the US Department of Labor suspended Microsoft from participating in the PERM program, which is the initial step for employers sponsoring foreign workers for US permanent residency.
Significant Wage Discrepancies Revealed
The Vice President outlined stark wage discrepancies, citing data that foreign professionals on H-1B visas earn an average of $20,000 less than US citizens in identical positions. This pay gap reportedly widens to $48,000 for workers hired through foreign outsourcing firms. Vance alleged that major corporations systematically utilize these wage disparities to maximize corporate profits at the expense of domestic labor.
"If you are working as an H-1B visa in the United States of America, you're earning $20,000 less than an American citizen hired in the same position. If you were brought in by one of these foreign outsourcing firms, you're making $48,000 less than an American citizen in a similar position," Vance stated, adding, "You bring in indentured servants from outside the country, you lay off American workers and, if you're a corporation, you make a ton of money by undercutting the wages of American workers, replacing them with people who frankly shouldn't be in the United States of America to begin with."
Broader Industry Crackdown and University Probes
US Labor Secretary Keith Sonderling confirmed that the administration's enforcement actions extend beyond Microsoft. Several other prominent technology and consulting companies, including Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, and Adobe, have also been suspended from the PERM sponsorship program.
The enforcement push has also reached higher education. Labor Department Inspector General Anthony D'Esposito confirmed that subpoenas have been served to nine major universities, including Harvard, Yale, and Stanford. These actions follow allegations that international students were brought in to fill positions that undercut American wages.