U.S. Labour Department Suspends Major IT Firms from Permanent Labour Certification Programme

On October 8, 2026, U.S. Labour Secretary Keith Sonderling announced the suspension of eight technology companies—Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe—from the Permanent Labour Certification Programme (PERM), the process that enables employers to seek green-card sponsorship for H-1B workers. The announcement was made alongside Vice-President J.D. Vance, head of the U.S. Anti-Fraud Task Force. The Department of Labour will neither accept new nor process pending PERM applications involving the listed firms.

The Hindu

The PERM programme is the primary pathway for foreign-skilled workers to obtain lawful permanent residence in the United States. The suspended firms are among the world’s largest IT outsourcing providers and have historically relied on this route to staff U.S. operations. According to the Labour Secretary, the eight companies have collectively sought almost three million foreign workers since 2009, securing over 230,000 H-1B visa approvals and more than 100,000 permanent labour certifications during that period.

The Hindu

Secretary Sonderling framed the suspension as a response to perceived abuse of the PERM system, emphasizing the impact on domestic employment. Vice-President Vance’s presence underscored the administration’s broader anti-fraud agenda, though no additional remarks from the Vice-President were recorded in the announcement.

The Hindu

• Companies suspended: Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft, Adobe

The Hindu

• Foreign-worker requests since 2009: ~3 million

The Hindu

• H-1B approvals: >230,000

The Hindu

• Permanent labour certifications granted: >100,000

The Hindu

• “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,” — Mr. Sonderling, labour secretary

The Hindu

• “We will not accept any new or process any pending permanent labour certification applications involving these companies. 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,” — Mr. Sonderling, labour secretary

The Hindu

• “That’s hundreds of thousands of jobs that were taken from American workers,” — Mr. Sonderling, labour secretary

The Hindu