The United States has suspended eight major technology companies from the Permanent Labour Certification Programme (PERM), a key step in the employment-based green card process for foreign workers. The decision, announced on October 8, 2026, could create uncertainty for thousands of Indian IT professionals seeking permanent residency in the country.
The companies affected are Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Cognizant, Microsoft, Adobe and Capgemini. The US Department of Labour has said it will stop accepting new PERM applications involving these companies and will not process applications that are already pending.
The announcement was made by US Vice President JD Vance, Labour Secretary Keith Sonderling and Attorney General Todd Blanche under the US Anti-Fraud Task Force initiative. The administration has alleged that some companies misused employment-based immigration programmes and recruited foreign workers at the expense of American employees.
Sonderling said the companies had collectively requested nearly three million foreign workers since 2009. According to him, they had received more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications. He argued that these figures represented employment opportunities that could otherwise have gone to American workers.
Microsoft was specifically criticised by Vance, who alleged that the company laid off 6,000 American workers in 2025 while receiving approvals for more than 6,000 H-1B visas and submitting over 3,600 applications for permanent labour certification. Vance accused the company of making extensive use of the immigration system while reducing its US workforce.
The administration said Microsoft and Adobe were also being suspended because they were facing multiple active federal investigations. The broader action includes six IT outsourcing companies: Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.
What the PERM Suspension Means
PERM, or Permanent Labour Certification, is a process administered by the US Department of Labour. It generally requires an employer to demonstrate that there are no willing and qualified American workers available for a particular position and that employing a foreign worker will not adversely affect wages or working conditions in the United States.
The certification is an important stage in many employer-sponsored green card applications. By suspending the eight companies from the programme, the US government has halted their ability to file new PERM applications and move pending applications forward under the process.
However, the decision does not automatically cancel existing H-1B visas or immediately prevent the affected companies from employing foreign nationals. Its impact will depend on the stage of each employee’s immigration case.
The suspension could be particularly significant for H-1B workers approaching the standard six-year limit on their stay in the United States. Some workers rely on progress in the employment-based green card process to qualify for extensions beyond that limit. Delays in the PERM stage could therefore complicate their longer-term plans to remain in the country.
The affected companies may also challenge the decision in federal court.
Potential Impact on Indian IT Professionals
Indian professionals account for more than 70% of H-1B petitions approved each year, according to the report. Indian technology workers are therefore likely to be among those affected by the suspension, particularly employees relying on the eight companies for employer-sponsored permanent residency.
The restrictions could affect both professionals already working in the United States and those planning to move there through the affected companies. Employees whose PERM applications have not yet been filed may face delays in starting the green card process, while those with pending applications may be unable to proceed until the suspension is resolved.
Rajiv Dabhadkar, founder of the National Organization for Software and Technology Professionals, said the US administration was increasingly examining how foreign workers are recruited, deployed and paid, rather than focusing only on whether they meet visa requirements. He noted that the allegations concern possible employer and intermediary practices, including wage suppression, and should be investigated on their merits.
Kuldip Kumar, partner at Mainstay Tax Advisors LLP, said the suspension itself does not affect the validity of existing H-1B status. However, it could have a greater impact on workers nearing the six-year limit who depend on the PERM-based green card process to extend their stay.
Xiao Wang, CEO of Boundless Immigration, also highlighted the risks for employees at the affected companies who are approaching the H-1B limit without an approved I-140 immigrant petition. He said the inability to initiate the PERM process could make it more difficult for these workers to establish a longer-term path to remain in the United States.
The suspension comes amid wider US scrutiny of skilled-worker immigration programmes, including proposed and contested fees related to H-1B petitions. The earlier $100,000 payment requirement for certain new H-1B petitions has been blocked by federal court orders while litigation continues. The report said the measure had also been extended through September 21, 2027.
The longer-term consequences for Indian technology professionals will depend on how the suspension is implemented, how long it remains in effect and whether the affected companies successfully challenge the decision.
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