Labor & Employment Law Daily Wrap Up, IMMIGRATION NEWS—Microsoft, Adobe suspended from permanent visa program amid H-1B fraud allegations, (Oct 9, 2026)

By Patricia K. Ruiz, J.D.

The administration says companies will be barred from the permanent visa program pending review of alleged H-1B abuses.

The Trump administration has suspended Microsoft Corp., Adobe Inc., and other employers from participation in the permanent visa program based on allegations of H-1B fraud, according to statements by Labor Secretary Keith Sonderling on social media and comments by Vice President JD Vance during an October 8 press conference on visa fraud.

The action appears to be one of the first major enforcement steps tied to a September executive order and related White House fact sheet aimed at strengthening H-1B program integrity and increasing interagency scrutiny of employers' use of foreign workers. Microsoft disputed suggestions that it had improperly used the H-1B program and said it looks forward to providing the administration with additional information.

According to Sonderling's posts on X, the Department of Labor suspended Microsoft, Adobe, and other companies from the permanent visa program while the government investigates alleged H-1B violations. The secretary characterized the action as part of the administration's efforts to combat visa fraud and protect U.S. workers. The announcements preceded public remarks by Vance discussing enforcement actions against alleged abuses of the H-1B system.

Administration enforcement effort. The suspensions appear to stem from President Donald Trump's September 18 executive order, Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program, and an accompanying White House fact sheet. The order directs federal agencies to coordinate more closely when reviewing H-1B petitions and to consider whether sponsoring employers have recently conducted, or plan to conduct, layoffs affecting similarly situated U.S. workers. The order also directs the Department of Labor to review previously submitted labor condition application data to determine whether additional enforcement action is warranted.

Alleged H-1B abuses. The executive order states that agencies have identified what it describes as widespread fraud and noncompliance among some H-1B employers, including allegations that employers displaced U.S. workers, misrepresented job duties or requirements, or misrepresented workers' qualifications. The White House fact sheet similarly states that the administration is pursuing H-1B fraud investigations and other investigations involving alleged preferences for visa holders over U.S. workers.

Microsoft response. In a statement, Microsoft said it believes in the strength of the American workforce and noted that the vast majority of its U.S. employees are Americans. The company said that of approximately 6,000 H-1B visa applications it submitted during the last fiscal year, about 80 percent were filed to extend or change the status of existing employees rather than hire new workers. Microsoft said the remaining filings involved individuals already legally present in the United States and represented about one percent of its U.S. workforce. Microsoft further said it files H-1B petitions only for individuals who meet the visa category's requirements and that it pays H-1B employees the same as other employees performing comparable work. The company said its compensation levels are among the highest in the technology sector and among H-1B filers.

Broader policy backdrop. The White House has framed the September executive order as part of a broader effort to increase oversight of the H-1B program, which the administration contends has been abused by some employers. The fact sheet states that the order enhances interagency coordination, increases scrutiny of petitions where there is a heightened risk of displacement of U.S. workers and seeks to strengthen enforcement against fraud and noncompliance.

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