The United States has suspended eight major technology and IT services companies from its employment-based green card certification programme, affecting firms including Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, Cognizant, Capgemini, Microsoft and Adobe. The Trump administration said the decision was part of a broader effort to investigate alleged misuse of employment-based immigration programmes and prioritise hiring American workers.
US Labour Secretary Keith Sonderling announced the suspension alongside Vice President JD Vance. The Department of Labour said it would stop accepting new permanent labour certification applications involving the named companies and would not process their pending applications. The move places additional restrictions on a pathway commonly used by skilled foreign professionals seeking permanent residency in the country. .
What triggered the US action?
The administration has accused some employers of exploiting foreign-worker visa programmes while reducing employment opportunities for American workers. Officials cited concerns about hiring practices, alleged fraud and the use of foreign labour following layoffs in the United States.
Vance specifically criticised Microsoft’s employment practices, linking the company’s workforce reductions with its use of foreign-worker visas. He argued that companies operating in the US should prioritise American workers when filling positions.
Microsoft disputed the broader characterisation of its visa practices. According to the company’s statement cited in the supplied report, around 80% of its approximately 6,000 H-1B applications in its previous fiscal year involved extending or changing the status of existing employees rather than hiring new workers. The company also said the remaining applications covered individuals already legally present in the United States who chose to join it.
Microsoft maintained that its H-1B petitions were filed for workers who met the programme’s requirements and that its compensation practices were competitive.
The allegations against the companies remain distinct from a final finding of wrongdoing. The suspension comes amid heightened federal scrutiny of employment-based immigration, with the administration seeking to strengthen enforcement and increase domestic hiring.
Understanding the PERM programme
The Permanent Labour Certification Programme, commonly known as PERM, is administered by the US Department of Labour. It generally requires an employer sponsoring a foreign worker for a qualifying permanent position to demonstrate that there are not sufficient qualified, willing and available American workers for the job and that employing the foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.
PERM is an important stage in many employer-sponsored employment-based green card cases. A green card grants lawful permanent resident status in the United States.
The programme is separate from the H-1B visa system, which allows eligible US employers to employ foreign professionals in qualifying specialty occupations, subject to applicable requirements.
The latest decision does not amount to a blanket cancellation of H-1B visas held by employees of the affected companies. Instead, it restricts their ability to proceed with new and pending PERM labour-certification applications. The consequences for individual employees will depend on their immigration status, the stage of their green card application and the availability of other lawful options.
Why Indian IT professionals could be affected
The decision is particularly relevant to Indian professionals because several of the affected companies have substantial US operations and employ skilled workers across technology consulting, software development, engineering and business services.
For employees pursuing employer-sponsored permanent residency, the suspension could delay or interrupt an important stage of the process. Such uncertainty may affect decisions about long-term employment, family arrangements and career planning in the United States.
The implications could also extend to employers. Companies may need to review their immigration processes, assess the status of affected employees and consider how restrictions on permanent residency sponsorship could influence recruitment and retention.
However, the scale of the eventual impact will depend on how long the suspension remains in place, the outcome of federal investigations and whether the companies can resume certification applications.
The action also comes as Indian technology companies increasingly expand local hiring in the US. Industry representatives have argued that skilled-worker mobility and permanent immigration should be considered separately because businesses rely on international talent to fill specialised roles and support client operations.
Nasscom highlights the distinction between immigration and talent mobility
The National Association of Software and Service Companies (Nasscom) said immigration and skilled talent mobility should not be treated as the same issue.
The industry body noted that the H-1B programme has historically helped US businesses address short-term skill shortages. It also said Indian technology companies have reduced their dependence on H-1B visas in recent years while expanding their local workforce in the United States.
Indian IT firms provide technology services to major US companies and support their operations across several industries. Restrictions on employment-based immigration could therefore raise questions about how businesses balance domestic hiring requirements with access to specialised international talent.
What happens next?
The immediate uncertainty concerns the duration and scope of the PERM restrictions and the progress of the investigations cited by US officials. Employees whose green card cases depend on the programme may need to assess their individual circumstances with qualified immigration advisers.
For Indian IT companies, the development adds another regulatory challenge in a market that remains important for their international business. The longer-term effects will depend on enforcement decisions, possible changes to immigration rules and how employers adapt their recruitment and retention strategies.
The suspension reflects the Trump administration’s stronger emphasis on domestic hiring and scrutiny of foreign-worker programmes. At the same time, it raises broader questions about the relationship between immigration policy, technology-sector staffing and the movement of skilled professionals across borders.
