US Suspends PERM Certification for Eight Major Tech Firms — Indian Workers' Green Card Path Hit
Updated: 51 minutes ago
WASHINGTON, October 9, 2026 — The US Department of Labor has suspended eight predominantly Indian-origin IT services companies from the Permanent Labor Certification (PERM) programme, marking an unprecedented escalation of the Trump administration's crackdown on foreign-worker hiring.
The companies affected are Tata Consultancy Services, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe. Labour Secretary Keith Sonderling announced the action at the White House alongside Vice-President JD Vance, alleging "systemic abuse" of prevailing-wage rules and fraudulent recruitment designed to exclude US workers.
What PERM Is and Why It Matters
PERM is the gateway step that allows employers to convert H-1B and other temporary staff into employment-based green-card holders. Before filing an immigrant petition, an employer must demonstrate to the Labor Department that no qualified US worker is willing or able to fill the role, and that hiring a foreign national will not adversely affect the wages and working conditions of similarly employed Americans.
Only after PERM certification can an employer proceed with an I-140 immigrant petition and, eventually, green-card processing.
Sonderling said internal audits showed the eight firms had sought almost three million foreign-worker positions since 2009, including 230,000 H-1B approvals and more than 100,000 PERM certifications.
Vance specifically pointed to Microsoft, alleging that it "abused the system the most." He highlighted that the company laid off 6,000 American employees last year while obtaining 6,300 H-1B visas and nearly 3,000 green cards.
H-1B Status Unaffected
India's Ministry of External Affairs clarified in a statement on October 9 that the PERM suspension does not affect existing H-1B visa holders or their status in the United States. It may, however, impact the green-card journey for eligible employees of the affected companies.
What this means in practice:
H-1B work authorisation continues; holders may remain and work lawfully
Green-card routes are blocked for those who have not completed the PERM stage
Already-approved green cards are unaffected and will not be revoked
For H-1B holders whose six-year clock is running out, immigration attorneys advise exploring extensions based on approved I-140 petitions or looking at alternative sponsors.
India's Response
Ministry of External Affairs spokesperson Randhir Jaiswal said the decision was "not in the mutual interest" of the two countries and pushed back on Vance's characterisation of Indian professionals.
"We believe these characterisations are inappropriate and overlook the fact that Indian professionals are highly educated, highly skilled, and have made substantial contributions to the US economy and innovation ecosystem," stated the MEA.
Nasscom, the Indian IT industry organization, emphasized that Indian companies have notably reduced their reliance on H-1B visas in recent years and have boosted local hiring in the United States.
TCS mentioned that it does not anticipate the suspension to impact its workforce strategy or customer engagements, noting that its PERM filings over the past two years have been in single digits.
The Practical Impact
According to ICICI Securities, Indian nationals represent less than 2% of all US PERM certifications between October 2024 and September 2025. However, the long-term implications are more significant.
Impact Area | Likely Effect |
Talent retention | Blocked green-card routes could accelerate attrition among US-based staff |
Recruitment costs | Firms may need to rely on costlier subcontractors or local hires |
Delivery timelines | Project staffing constraints could delay Fortune 500 client work |
Compliance risk | Multinational clients may reconsider vendor concentration among India-centric providers |
Analysts warn that prolonged uncertainty could increase voluntary departures among US local staff.
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Quick Reference Summary
Aspect | Detail |
Announced | October 8, 2026 |
Companies Affected | TCS, Infosys, Wipro, HCL, Cognizant, Capgemini, Microsoft, Adobe |
Suspension Scope | New PERM applications not accepted; pending filings not processed |
H-1B Impact | None — existing visas remain valid |
Green Card Impact | Blocked for employees who have not completed PERM |
India PERM Share | Under 2% (Oct 2024 – Sep 2025) |
Government Positions | India says decision harms mutual interests; US cites worker protection |
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