October 10, 2026: The United States has suspended new and pending applications under its Permanent Labour Certification programme (PERM) involving eight major technology companies: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech and Capgemini. The move could disrupt an important route to US permanent residency for foreign employees sponsored by these employers, including many Indian IT professionals.

The US administration says the action follows concerns about alleged misuse of the programme and possible displacement of American workers. The announcement is a suspension affecting the named companies—not a ban on every multinational company in the United States, and not an automatic cancellation of all work visas.

Which companies are affected?

  • Microsoft
  • Adobe
  • Cognizant
  • Infosys
  • Tata Consultancy Services (TCS)
  • Wipro
  • HCL Technologies (HCLTech)
  • Capgemini

US Labour Secretary Keith Sonderling said the Department of Labor would not accept new or process pending PERM applications involving the companies while the suspensions remain in effect. Officials have linked the action to investigations into the companies’ use of employment-based immigration programmes. The allegations are the administration’s stated rationale; they should not be presented as proven wrongdoing by every company or worker.

What is PERM?

PERM is the US Department of Labor’s permanent labour-certification process. For many employer-sponsored employment-based green-card cases, an employer must complete this step before filing the next stage of the immigration petition. The process is intended to test the labour market and establish that hiring the sponsored foreign worker meets applicable requirements, including protections for US workers’ wages and working conditions.

PERM is not a green card itself. It is one stage in a longer process, and not every immigration category requires PERM. The employer—not the employee acting alone—normally initiates the labour-certification application.

Does this mean H-1B visas have been banned?

No. PERM and H-1B are different processes. H-1B is a temporary work status for eligible specialty-occupation jobs. PERM is a labour-certification step used in many employer-sponsored green-card cases.

The PERM suspension does not, by itself, automatically cancel an employee’s existing H-1B status or an already-issued green card. However, it can create uncertainty for workers who were relying on employer-sponsored PERM to pursue permanent residency. Depending on the worker’s individual case and stage, a pause may also affect longer-term immigration planning and some options for extending H-1B status beyond the usual time limits. Employees should obtain advice based on their own case rather than assume every person is affected in the same way.

Why are Indian IT professionals concerned?

Several of the affected companies are major employers of Indian technology professionals in the United States. Many workers on temporary work visas pursue employer-sponsored permanent residency as a way to build a long-term future in the country. A pause in PERM processing can leave new cases unable to start and pending cases unable to progress while the suspension applies.

  • New sponsorship: Employees at the named companies may not be able to begin a new PERM application during the suspension.
  • Pending cases: Applications already filed may remain stalled while processing is halted.
  • Green-card timelines: The pause may delay progress toward permanent residency and add uncertainty to future planning.
  • Employment and visa decisions: Workers should separately confirm the validity and conditions of their current status and seek qualified legal advice before making major decisions.

What does the US government allege?

US officials have argued that some employers used the immigration system in ways that disadvantaged American workers. Vice President JD Vance and Labour Department officials have criticised the use of foreign-worker programmes by large technology and outsourcing companies. The administration has said the suspensions will remain in place while it pursues its actions.

The companies’ circumstances and responses may differ. Microsoft has said that most of its H-1B filings in the last fiscal year related to existing employees rather than new hires and that it pays H-1B employees comparably to other employees in similar roles. TCS has said it does not expect the suspension to materially affect its workforce strategy or client engagements, and that its US workforce approach is centred on local hiring. These company statements are not a substitute for the eventual outcome of any investigation.

How has India responded?

India’s Ministry of External Affairs expressed concern, saying the US measures affecting the permanent labour-certification programme do not advance the shared ambitions of the two countries. It also highlighted the mutual benefits of skilled-worker mobility.

Industry body Nasscom has said Indian technology companies have reduced their dependence on H-1B visas in recent years and expanded local hiring in the United States. The policy debate therefore involves not only immigration applications, but also the role of skilled workers in the wider US–India technology and business relationship.

What should affected employees do?

  1. Ask the employer’s immigration or HR team whether the suspension applies to the specific case.
  2. Confirm whether the case is at the recruitment, PERM, immigrant-petition or later stage.
  3. Check the validity and conditions of current immigration status separately from the green-card process.
  4. Consult a qualified US immigration attorney before making decisions about travel, job changes or visa status.
  5. Monitor official announcements from the US Department of Labor and reliable reporting for updates on the duration and scope of the suspension.

Do not assume that a stalled PERM application automatically ends permission to work in the United States. Equally, do not assume the pause has no consequences: individual circumstances, filing dates and immigration history can matter.

What happens next?

Key questions remain about how long the suspensions will last, what the investigations will establish and whether the affected companies will be able to resume filings. The immediate impact is clearest for PERM cases involving the eight named employers. The wider implications for hiring, employee retention and US–India skilled-worker mobility will depend on subsequent government decisions and any company-specific developments.

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