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The United States has suspended eight major technology companies from participating in the employment-based Permanent Labor Certification
(PERM) programme, a key step in the green card process for many foreign professionals. The move could delay permanent residency applications for
eligible employees sponsored by Microsoft, Adobe, Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech, Cognizant and Capgemini.
Announced on October 8, 2026, the decision prevents the US Department of Labor from accepting new or processing pending PERM applications involving the named companies. US officials said the action followed concerns about the use of employment-based immigration programmes and their impact on American workers.
Vice President JD Vance and Labour Secretary Keith Sonderling criticised the companies’ use of employment-based immigration routes, alleging that such practices could disadvantage US workers. These allegations should not be treated as established findings of wrongdoing against every company named in the suspension.
PERM requires employers to complete a labour-certification process for many employment-based green card applications. Employers generally must demonstrate that qualified US workers are not available for the position under the applicable requirements. Certification is commonly required for employer-sponsored permanent residency applications in the EB-2 and EB-3 categories, although some employment-based green card routes do not require PERM.
The suspension could delay affected workers’ progress towards permanent residency, particularly those whose applications have not completed the labour-certification stage. It does not automatically cancel existing H-1B visas or green cards already issued. The impact on individual employees will depend on their immigration status and the stage of their applications.
The development could create additional uncertainty for professionals approaching the maximum period permitted under H-1B status. Options for extensions or alternative immigration pathways depend on individual eligibility and circumstances. Affected employees should seek advice from qualified US immigration lawyers.
TCS said on October 9 that it did not expect the suspension to affect its workforce strategy or customer engagements. The company said its PERM applications had been in single digits over the previous two years. It also reiterated plans to hire an additional 15,000 employees in the United States over the next five years, citing local recruitment and campus hiring as central to its workforce strategy.
The decision adds to uncertainty for technology companies that depend on international talent and employees pursuing employer-sponsored permanent residency. The extent of the disruption will depend on how US authorities implement the suspension and how individual cases are affected. Employees at the named companies should contact their employers’ immigration teams to understand the implications for their applications and work-authorisation timelines.
Announced on October 8, 2026, the decision prevents the US Department of Labor from accepting new or processing pending PERM applications involving the named companies. US officials said the action followed concerns about the use of employment-based immigration programmes and their impact on American workers.
Vice President JD Vance and Labour Secretary Keith Sonderling criticised the companies’ use of employment-based immigration routes, alleging that such practices could disadvantage US workers. These allegations should not be treated as established findings of wrongdoing against every company named in the suspension.
PERM requires employers to complete a labour-certification process for many employment-based green card applications. Employers generally must demonstrate that qualified US workers are not available for the position under the applicable requirements. Certification is commonly required for employer-sponsored permanent residency applications in the EB-2 and EB-3 categories, although some employment-based green card routes do not require PERM.
The suspension could delay affected workers’ progress towards permanent residency, particularly those whose applications have not completed the labour-certification stage. It does not automatically cancel existing H-1B visas or green cards already issued. The impact on individual employees will depend on their immigration status and the stage of their applications.
The development could create additional uncertainty for professionals approaching the maximum period permitted under H-1B status. Options for extensions or alternative immigration pathways depend on individual eligibility and circumstances. Affected employees should seek advice from qualified US immigration lawyers.
TCS said on October 9 that it did not expect the suspension to affect its workforce strategy or customer engagements. The company said its PERM applications had been in single digits over the previous two years. It also reiterated plans to hire an additional 15,000 employees in the United States over the next five years, citing local recruitment and campus hiring as central to its workforce strategy.
The decision adds to uncertainty for technology companies that depend on international talent and employees pursuing employer-sponsored permanent residency. The extent of the disruption will depend on how US authorities implement the suspension and how individual cases are affected. Employees at the named companies should contact their employers’ immigration teams to understand the implications for their applications and work-authorisation timelines.
