In his prepared statement, Smith said Microsoft entered this year's H-1B cap season knowing that "we could not file H-B petitions for 250 candidates we had identified for job offers" simply because the cap would be exhausted in the first week, a full two months before their graduation dates in June.

"Among the H-1B petitions we were able to file this year, we will likely have more than 200 additional candidates to whom job offers were extended, but who will not be selected in the H-1B lottery. When this happens, we don't simply rescind these offers of employment," he said.

Smith added: "We begin the process of identifying alternative options for employing these talented individuals at one of our subsidiaries abroad.

"The inability to employ these individuals in the US means the loss of work that was intended to be performed in the US and along with it, the output and productivity our business groups were planning, not to mention the potential tax revenues and economic activity associated with the salaries for those jobs."

He said these immigration challenges also have very real consequences for the talent US is trying to attract.

Smith said some potential hires are unwilling to jump over all of the hurdles presented by the H-1B cap and will simply walk away from the offer of employment in the US, opting to instead pursue alternative options in their home countries.

"A few specific examples from our own experience will help illustrate the tangible impact to these individuals. Last year, we were unable to file an H-1B petition for one of our candidates before the H-1B cap was exhausted due to his graduation date.

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