Important shocking news has emerged for Indian IT employees working in the United States. The U.S. Department of Labor has temporarily suspended major IT companies including Infosys, Tata Consultancy Services (TCS), Wipro, HCL, Cognizant, Microsoft, Adobe and Capgemini from the Permanent Labor Certification Program (PERM).
The U.S. government has stated that action was taken on the basis of allegations that these companies may have misused U.S. immigration procedures for foreign workers.
What is PERM?
PERM is the key process through which employers in the United States apply to provide permanent residency rights (Green Card / Green Card Sponsorship) to foreign workers employed on visas such as H-1B.
Companies must prove that there are no qualified American workers available for a specific permanent position, and that hiring a foreign worker will not adversely affect the wages, employment, or working conditions of American workers.
Only after that can the company proceed with the subsequent procedures for the Green Card.
What is the suspension?
According to the decision taken by the U.S. Department of Labor, new PERM applications related to the affected companies will not be accepted; applications already pending will also not be processed.
No clear timeline has been announced for how long this suspension will last.
Will the H-1B visa be canceled?
Here is the important point.
The H-1B visa is not being revoked immediately. This move is also not an order forcing H-1B workers employed at those companies to leave the United States right away.
However, for those on a path from temporary work status like H-1B toward permanent residency or a Green Card, this could become a major obstacle.
Why is this important for Indian IT workers?
Companies like Infosys, TCS, Wipro, and HCL employ a large number of Indian IT workers in the United States.
For employees who have been working in the United States for many years and are waiting to stay there permanently through a Green Card, uncertainty may increase because of the PERM suspension.
In particular, since applications from those already in the PERM process are being put on hold, their Green Card timeline may be extended further.
What is the U.S. saying?
U.S. Labor Secretary Keith Sonderling has accused these companies of system abuse in the way they use foreign workers.
His statement specifically named the IT companies Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini, as well as Microsoft and Adobe separately.
U.S. Vice President JD Vance made serious allegations, particularly against Microsoft. He said that in 2025 Microsoft laid off around 6,000 American employees and, during the same period, received thousands of H-1B approvals and PERM applications. These allegations have been cited as a major reason for the government’s action against abuse of the PERM system.
Investigations into universities too!
This action has not been limited to IT companies. Nine universities, including Harvard, Yale, and Stanford, are also under investigation based on allegations that they used foreign students to reduce American wages. U.S. officials have also said that subpoenas have been issued for the investigations.
On one hand, the government is taking strict measures with the aim of protecting American jobs. On the other hand, thousands of Indian IT workers who have been working in the United States for years and waiting for a Green Card are now facing a new wave of uncertainty because of this change.
On one side are Indian IT workers waiting in the U.S. with dreams of a Green Card… on the other, Indian IT companies that depend heavily on the American market. What kind of impact this PERM suspension will have going forward is now something to watch closely.