Full Breakdown
U.S. Suspends Major IT Firms from PERM Green-Card Program
By Drooid · · How we work
Core Event
On October 8 2026, U.S. Labor Secretary Keith Sonderling announced that the Department of Labor will no longer accept new or process pending Permanent Labour Certification (PERM) applications for eight companies: Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL, Capgemini, Microsoft and Adobe. The suspension was made alongside Vice President J.D. Vance and the head of the U.S. Anti-Fraud Task Force.
Background & Context
The PERM program requires employers to prove no qualified U.S. worker is available and that hiring a foreign worker will not depress wages. The Trump administration heightened scrutiny of foreign-worker visas, arguing the system was used to replace American employees. In September 2025 the Labor Department halted Cognizant’s PERM filings, a step that led to the broader October action.
Data & Statistics
- Since 2009 the eight firms have collectively requested almost three million foreign workers.
- They have received over 230,000 H-1B approvals and more than 100,000 permanent labour certifications.
- Indian nationals account for over 70 % of all approved H-1B petitions each year.
- The September 2026 Visa Bulletin listed the EB-3 final-action date for India as January 1 2014, highlighting the existing backlog.
Official Statements & Responses
Vice President Vance called the firms “visa mills” and warned they must “hire great American workers.” Labor Department Inspector General Anthony D’Esposito said subpoenas have been served to nine universities in separate investigations of alleged J-1 visa misuse.
Criticism & Opposition
Industry body NASSCOM noted that Indian tech companies have reduced reliance on H-1B visas and argued immigration and skilled-talent mobility are distinct issues. Immigration attorney Geeta Darubra warned the suspension could push firms toward alternative visas such as L-1A, lengthening the immigration journey for many Indian workers.
Impact on Indian IT Professionals
Employees of the suspended firms who have not yet filed a PERM application cannot start the green-card process, delaying a priority date. Those with approved PERM filings may continue toward permanent residency, but pending applications could face heightened scrutiny. The ban does not affect existing H-1B status; workers can remain employed if they maintain a valid H-1B, though those nearing the six-year limit may struggle to extend their stay without a new PERM filing.
Conflicting Reports & Gaps
The administration’s fraud and job-displacement allegations are presented as attributed claims; no detailed evidence or final adjudications have been released. The Department of Labor has not specified the suspension’s duration or reinstatement criteria, leaving guidance gaps for employers and workers.
Verbatim Quotes
- “I am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini,” — Keith Sonderling, Labor Secretary
- “Since 2009, just these companies alone have requested almost three million foreign workers. They've received over 230,000 H-1B visa approvals and over 100,000 permanent labour certifications,” — Keith Sonderling, Labor Secretary
The suspension marks the most extensive limitation yet on the PERM pathway, directly affecting the green-card prospects of thousands of skilled foreign workers—particularly those from India—while signaling the administration’s intent to prioritize domestic hiring in the technology sector.