Microsoft says it does not underpay H-1B workers, arguing that employees on the visa receive the same pay as colleagues doing comparable work and that its offered wages rank among the highest in H-1B filings. Those are the company’s claims, not an independently verified finding. The administration’s announced action concerns Microsoft’s access to the Department of Labor’s PERM labor-certification program for employment-based green cards; it does not bar Microsoft from employing H-1B workers.
What Microsoft said on October 8, 2026
Microsoft issued its response amid criticism of its use of H-1B visas and an announced suspension from a Labor Department program used in many employment-based permanent-residency cases.
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The company said it submitted about 6,000 H-1B applications during its last fiscal year. Microsoft said roughly 80% were extensions or changes of status for existing employees. It described the remaining filings as applications for new employees who were already legally in the United States and said those hires represented about 1% of its U.S. workforce. These figures come from Microsoft’s own statement.
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1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesOn pay, Microsoft stated: “We pay our H-1B employees the same as any other employees doing comparable work.” It also said: “We pay our employees some of the highest compensation in the tech sector, and our wages are among the highest of all H-1B filings.” The statement did not publish a matched analysis showing how H-1B and non-H-1B employees were compared, nor the underlying payroll data needed to verify the conclusions.
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Does the PERM suspension stop Microsoft from hiring H-1B workers?
No. The action described by The Washington Post concerns access to the Department of Labor’s Permanent Labor Certification (PERM) program. PERM is commonly used before an employer files an immigrant petition in employment-based permanent-residency cases.
The announced suspension therefore affects a route associated with sponsoring some employees for permanent residence. It is not a general prohibition on employing people in H-1B status, and the reporting did not say Microsoft was barred from filing or maintaining H-1B employment petitions. The duration of the suspension and the basis for the investigation were not clear in the report.
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The Department of Labor describes labor certification as a process intended to establish that enough U.S. workers who are able, willing, qualified and available for the job cannot be found, and that hiring the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers. That description explains what PERM is designed to test; it does not prove what Microsoft paid a particular employee or establish that Microsoft violated the standard.
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What the administration alleged—and what is established
Vice President JD Vance accused Microsoft of connecting layoffs with H-1B approvals and green-card applications, according to GeekWire’s October 8 account. That is an administration allegation. It should not be read as proof that particular laid-off U.S. employees were replaced by H-1B workers.
At the announcement described by The Washington Post, officials did not present evidence that Microsoft had replaced laid-off U.S. workers through H-1B hiring. Layoffs and visa filings can occur during the same period, but showing one-for-one replacement would require evidence linking the roles, locations, timing and workers.
Microsoft’s public statement, as reported by GeekWire, did not directly address the PERM suspension. That omission does not establish either wrongdoing or exoneration.
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- Pages: 244
- Publication Date: 2016-02-29
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What Microsoft’s LCA wage data can—and cannot—show
Employers generally submit a Labor Condition Application (LCA) to the Labor Department for an H-1B worker. An LCA includes an offered wage and is part of the H-1B process, but an LCA filing is not the same as a visa approval, a confirmed hire or a unique employee.
A PlainVisa compilation of Department of Labor disclosure files, stated current on September 9, 2026, reports the following Microsoft filing figures:
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| Measure | Reported figure | What it represents |
|---|---|---|
| Microsoft LCA filings, FY2023–FY2026 | 32,718 | Filing records, not unique workers or confirmed hires |
| Median offered wage across that compilation | $169,489 | Filing-level offered wage, not total compensation |
| Average offered wage in FY2025 | $171,891 | Filing-level average for that fiscal year |
These numbers provide scale and a view of wages stated in filings. They do not show stock awards, bonuses, benefits or other components of total compensation. They also cannot tell a reader whether H-1B employees were paid less than non-H-1B colleagues performing equivalent work. The compilation itself cautions that an LCA is not a USCIS approval, job offer or confirmed hire.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why a fair pay comparison is still unresolved
Testing Microsoft’s parity claim would require matched employees or jobs using the same:
- Occupation and duties
- Work location
- Experience and job level
- Time period
- Definition of compensation, including whether bonuses, equity and benefits are counted
The available aggregate LCA figures do not provide that matching. A median or average offered wage can move because of changes in locations, occupations, seniority or the mix of filings, even when individual pay practices remain unchanged. Conversely, a high aggregate wage does not rule out underpayment in a specific job or group.
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Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →On the evidence available, Microsoft’s statement is evidence of the company’s position. The LCA compilation does not independently establish pay parity, and it does not establish underpayment.
Where the congressional inquiry fits
On September 24, 2025, Senators Charles Grassley and Richard Durbin sent Microsoft a letter asking about hiring foreign workers during layoffs, recruitment, pay and benefits, entry-level wage levels and the use of contractors. The letter documents questions and concerns raised by the senators. It is not an independent determination that Microsoft underpaid workers or displaced them.
Quick Recap
How to read the claims
- “Microsoft underpays H-1B workers”: an allegation that the cited material does not prove.
- “Microsoft pays the same for comparable work”: Microsoft’s stated position, without a published matched analysis in the reviewed material.
- “Microsoft filed 32,718 H-1B cases”: a filing count from a secondary compilation, not a count of people hired or visas approved.
- “The PERM suspension ends H-1B hiring”: incorrect; the announced action concerns the permanent-residency labor-certification route.
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