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By Sanwar Ali:
Sanwar Ali is the founder of workpermit.com and a pioneer in legal services automation, specializing in AI-enhanced immigration solutions. He has designed the first ever Green Card Lottery AI eligibility and application assistant available FREE on the ChatGPT store.
He has also designed and developed the first AI L1 visa assistant system to help businesses manage their L1 visa applications and streamline the intra-company transfer process, helping businesses transfer key personnel to their US offices.
In response to economic pressures and recent tech industry layoffs, Amazon and Google have paused new PERM (Program Electronic Review Management) applications for employment-based green card sponsorship. While PERM certification is crucial for certain green card categories, it is not universally required. This policy shift affects foreign professionals on temporary visas, especially those on H1B, L1, and E2 visas, who may now face additional challenges in securing permanent residency. The report also explores how the rise of AI and automation may be influencing demand for IT roles, further impacting visa holders.
Understanding the PERM Certification Process and Its Role in Green Card Sponsorship
The PERM process is a labor certification through the Department of Labor (DOL), essential for some employment-based green card categories, primarily EB2 (for advanced degree professionals) and EB3 (for skilled workers). Employers must conduct thorough recruitment steps to confirm that hiring a foreign worker will not displace U.S. workers. PERM is central to certain green card applications, although categories such as EB1A (extraordinary ability), EB1B (outstanding professors and researchers), and EB1C (multinational executives and managers) do not require it.
Likely Impacts on H1B, L1, and E2 Visa Holders and the AI Factor
H1B Visa Holders
The H1B visa allows skilled foreign professionals to work in the U.S. for up to six years, but many depend on PERM-based sponsorship to transition to green cards, particularly in EB2 and EB3 categories. Without PERM sponsorship, H1B holders nearing visa expiration may have to explore alternative sponsors or potentially return home. Additionally, the rise of AI is shifting tech industry demand, as some IT support and entry-level roles are increasingly automated, which could affect H1B roles reliant on these functions. Companies are now prioritizing positions that focus on AI integration, cybersecurity, and data management—skills increasingly required to stay relevant in the tech sector.
L1 Visa Holders
L1 visas enable intracompany transfers, primarily for managerial or specialized knowledge roles. For L1A visa holders in managerial or executive roles, the EB1C category offers a green card pathway without PERM certification. In contrast, L1B holders in specialized knowledge roles often depend on PERM-based categories like EB2 or EB3. The PERM suspension limits green card opportunities for these workers. As AI reshapes job requirements, companies may prioritize foreign workers with AI-related skills, making it essential for L1B holders to continually upskill in data analytics, machine learning, or cybersecurity to remain competitive.
E2 Visa Holders
Although the E2 visa does not directly lead to a green card, some E2 holders pursue employment-based green cards in categories requiring PERM certification. The suspension impacts E2 holders who rely on employer sponsorship for EB2 or EB3 pathways. Given that AI is transforming certain IT roles, workers on E2 visas may need to align their skill sets with emerging fields that are less susceptible to automation. For instance, roles requiring high-level decision-making or strategy around AI implementation are less likely to face immediate automation risks.
Changing Demand in IT and Tech: How AI Affects Visa Holders
AI’s expansion in the tech industry is automating routine and repetitive IT tasks, particularly in areas like basic troubleshooting, system monitoring, and low-level coding. This shift could impact entry-level and mid-level IT roles, traditionally filled by H1B and L1 visa holders, as companies seek to leverage AI tools for efficiency. In contrast, demand is growing for specialized roles in AI development, machine learning, cybersecurity, and data engineering.
For foreign workers in IT, adapting to this shift is crucial. Visa holders looking to secure long-term residency or new sponsorships may benefit from upskilling in areas directly tied to AI, such as AI governance, data management, or cybersecurity, which are seeing heightened demand. Roles requiring human oversight, strategy, and creativity are less likely to be automated, creating opportunities for visa holders with these skills to remain competitive in the U.S. tech sector.
Alternative Options for Impacted Workers and Implications for Immigration Policy
For workers affected by the PERM suspension, several pathways may help extend their status or open different avenues to permanent residency:
AC21 Extensions for H1B Visa Holders: The American Competitiveness in the 21st Century Act (AC21) allows H1B holders to extend their visas beyond the six-year cap if their PERM or I-140 (immigrant petition) application has been pending for 365 days or more. This provision enables one-year increments, offering H1B holders a temporary solution as they await green card eligibility.
EB1C Green Cards for L1A Visa Holders: L1A visa holders who meet the criteria for the EB1C category can bypass PERM requirements. This green card pathway is accessible to L1A visa holders in executive or managerial roles but does not extend to L1B holders. This option provides a critical pathway to permanent residency for L1A holders impacted by the PERM suspension.
Evaluating Employment Opportunities with Active PERM Sponsorship: Some foreign professionals may find it necessary to consider new employers who continue to support PERM filings. While this can be challenging amid industry-wide layoffs, tech professionals may seek positions with firms in other sectors that still have active PERM sponsorship.
Implications for U.S. Immigration Policy: Calls for Reform
The Amazon and Google PERM suspensions underscore larger issues within the U.S. immigration system, especially the backlog of employment-based green cards, currently exceeding 1.8 million cases. Backlogs are particularly challenging for applicants from high-demand countries, such as India and China, where wait times can exceed a decade due to annual per-country limits on green cards. In response, industry leaders and immigration advocates have proposed reform measures, including:
Elimination of Per-Country Caps: The per-country cap currently limits the number of green cards issued to applicants from any single country. Removing this cap could help reduce wait times for foreign nationals from high-demand countries, addressing some of the bottlenecks in the system.
Increased Green Card Quotas for High-Demand Sectors: Expanding the annual limit on employment-based green cards or introducing expedited pathways for critical sectors like technology could help address both the green card backlog and industry-specific labor shortages.
Streamlined Pathways for High-Skilled Workers: Creating fast-tracked options for highly skilled workers, particularly in fields like technology and engineering, would support U.S. economic needs and reinforce the country’s competitive edge in attracting global talent.
While reform efforts have been slow to gain traction, Amazon and Google’s recent policy shifts spotlight the urgent need for a flexible, modernized immigration system that can accommodate the evolving demands of the U.S. labor market.
Conclusion
Amazon and Google’s decision to suspend PERM-based green card sponsorship for new applications signals significant changes within the employment-based immigration landscape. For H1B, L1, and E2 visa holders, this suspension poses challenges to pursuing permanent residency, with varying degrees of impact depending on the visa category and green card pathway.
Although options such as AC21 extensions and EB1C applications offer temporary solutions for some, this policy change highlights the broader need for comprehensive immigration reform. A responsive and adaptable U.S. immigration system is essential to supporting the high-skilled workforce that underpins the country’s tech industry and economic growth.
workpermit.com helps with US Work Visa: L1, H1B, E2, and O1 Visas
There are various types of US visas that individuals can apply for, depending on their circumstances. Some of the most common employment-based visas include:
L1 visa: This visa is for intracompany transferees who work in managerial or executive positions or have specialized knowledge.
H1B visa: This visa is for specialty occupations that require theoretical or technical expertise in specialized fields.
E2 visa: This visa is for investors who have made a significant investment in a US business and, management or essential skills employees. Only certain nationalities can apply.
O1 visa: This visa is for individuals with extraordinary abilities in the arts, sciences, education, business, or athletics.
Workpermit.com is a specialist visa services firm with over thirty years of experience dealing with visa applications. For more information and advice, please contact us on 0344 991 9222 or at london@workpermit.com(link sends e-mail)
