'Indentured servants': JD Vance criticizes H-1B visa practices
What's the story
United States Vice President JD Vance has accused tech giant Microsoft of abusing the H-1B visa system to replace American workers with cheaper foreign labor. He used the term "indentured servants" for skilled workers brought in by outsourcing firms. The Trump administration has suspended Microsoft from a program that lets employers sponsor foreign workers for US permanent residency amid fraud allegations.
Wage gap
H-1B visa holders earn $20,000 less than American counterparts: Vance
Vance claimed that H-1B visa holders earn $20,000 less than American counterparts in similar roles. He alleged those hired by foreign outsourcing firms make $48,000 less.
"You bring in indentured servants from outside the country; you lay off American workers," he said.
The vice president accused Microsoft of abusing the system more than any other US company.
Layoff allegations
Layoffs and H-1B approvals in same year
Vance pointed to Microsoft's 2025 layoffs, where 6,000 Americans were laid off after claiming that it could not find qualified US employees for the positions.
Simultaneously, Microsoft approved over 6,000 H-1B visas and filed 3,682 PERM (Permanent Labor Certification) applications.
Nearly 1,000 applications reportedly matched jobs held by laid-off American workers.
Broader investigation
Other companies and universities facing action
US Labor Secretary Keith Sonderling said Microsoft isn't alone in facing action. Cognizant, Infosys, Tata, Wipro, HCO, Capgemini, and Adobe are also suspended from the program.
Nine universities, including Harvard and Yale, are under investigation for allegedly bringing international students to undercut American wages.
The actions are part of the Trump administration's crackdown on immigration programs meant for skilled foreign workers and students.
Visa process
What are H-1B visas and green cards?
The H-1B visa allows skilled foreign workers to live and work temporarily in the US. On the other hand, a green card grants permanent resident status.
Many employment-based green card applications start with PERM labor certification, where employers prove a lack of qualified American workers for positions filled by foreign hires won't harm wages or conditions for US workers.