Archive · 9 Oct 2026
US Suspends Eight Tech Firms From Green-Card Certification Program
The US government paused a process that companies use to help some workers get permanent residency, sometimes called a green card.
Eight technology companies were named, including Infosys, TCS, Microsoft and Adobe.
The Labor Department said it would stop handling new and pending applications involving those companies.
The action does not cancel workers’ existing H-1B visas.
US officials said they were concerned about fraud and the effect on American workers.
Vice President JD Vance accused Microsoft of laying off US workers while also using foreign-worker programs.
NASSCOM said Indian technology companies now rely less on H-1B visas and hire more people locally in the US.
Companies including TCS said local hiring is an important part of their workforce plans.
Reports described mixed share-price moves, while also citing AI-related news and TCS results as factors affecting IT stocks.
The US Labor Department suspended Cognizant, Infosys, Tata Consultancy Services, Wipro, HCLTech, Capgemini, Microsoft and Adobe from the PERM labor-certification program.
The department said it would stop accepting new and processing pending PERM applications involving the companies; the action does not cancel existing H-1B visas.
US officials alleged fraud and harm to American workers; Vice President JD Vance singled out Microsoft, citing layoffs alongside H-1B approvals and green cards.
NASSCOM said Indian IT companies have reduced H-1B dependence and increased US local hiring; TCS also said its US workforce strategy focuses on local recruitment.
Indian IT shares initially fell but later recovered in one account; Friday’s rally was also discussed alongside OpenAI revenue reporting and TCS results.
- Who
- The US Department of Labor suspended eight technology companies; Labor Secretary Keith Sonderling and Vice President JD Vance announced the action.
- What
- The department halted new and pending PERM labor-certification applications involving the companies.
- When
- Thursday; one article identifies the announcement as October 8 and Friday trading as October 9, but gives no year.
- Where
- The action was announced in the United States; the companies include Indian and US-based firms.
- Why
- US officials cited alleged fraud and concerns that foreign-worker programs could harm American workers.
US administration's claims
Industry response and reported limits
Effect of foreign-worker programs
US administration's claims
US officials said the programs were being abused and could take opportunities from American workers. Vance accused Microsoft of laying off US employees while receiving H-1B approvals and green cards.
Industry response and reported limits
NASSCOM said Indian IT firms have reduced H-1B dependence and expanded local US hiring. TCS said its US workforce strategy is anchored in hiring local talent.
Scope and likely impact of the suspension
US administration's claims
The administration described the suspension as action against alleged fraud and said it would halt new and pending PERM applications involving the companies.
Industry response and reported limits
The action does not cancel H-1B visas. Analysts quoted in one article said the near-term earnings impact may be limited, while noting uncertainty around pending cases and possible staffing effects.
- Companies named
- Cognizant, Infosys, Tata Consultancy Services, Wipro, HCLTech, Capgemini, Microsoft and Adobe.
- Program affected
- The Permanent Labor Certification Program (PERM), a step in many employer-sponsored employment-based green-card cases.
- What is paused
- The Labor Department said it would not accept new or process pending PERM applications involving the companies.
- Visa distinction
- The suspension concerns PERM processing and does not cancel existing H-1B visas.
- Figures cited by Sonderling
- Since 2009, the firms had requested almost three million foreign workers, received over 230,000 H-1B approvals and obtained over 100,000 permanent labor certifications.
- Industry response
- NASSCOM said Indian IT companies have reduced reliance on H-1B visas and expanded local hiring in the US.
- Market context
- Reports described initial declines in Infosys and Wipro ADRs and subsequent recovery; OpenAI revenue reporting and TCS results were also cited as market factors.
Sources
US Halts Green-Card Processing For Infosys, TCS, Cognizant, Others
US suspends Cognizant, Infosys, Tata, Wipro, Capgemini, HCL from permanent labour certification
Infosys, Wipro ADRs drop 3% as Cognizant, Infosys, TCS, Wipro, HCL among IT firms suspended from US green card programme
US takes aim at 8 Indian & American IT giants, suspends them from permanent labour certification
3 reasons why tech stocks are rallying today: Nifty IT up 2% led by Infosys, TCS
