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US Suspends Major IT Firms From Green Card PERM Program
The US government has stopped several large technology companies from using a process called PERM for now.
PERM is one step employers usually need before helping a worker apply for an employment-based Green Card.
Officials say the companies relied too much on foreign workers and should hire Americans first.
The companies named include several with many Indian employees.
The suspension does not cancel H-1B visas, but it could slow or block some workers’ path to permanent residency.
It may be especially difficult for some H-1B workers whose permitted stay is nearing its limit.
Microsoft disagreed with claims made by Vice President JD Vance about its visa applications.
Tata Consultancy Services said the suspension was unlikely to affect its workforce plans because it had filed very few PERM applications recently.
The Trump administration suspended eight major IT firms from participating in the employment-based Green Card PERM process.
The Department of Labor said it would stop accepting new or processing pending PERM applications involving the named companies.
Officials accused the firms of abusing foreign-worker programs and prioritizing foreign workers over Americans; the companies’ alleged wrongdoing was not independently established in the article.
The suspension could delay or block employer-sponsored Green Card applications, with particular concern for H-1B workers nearing the six-year limit.
Microsoft disputed Vice President JD Vance’s claims about its H-1B hiring, while Tata Consultancy Services said its recent PERM applications were in single digits.
- Who
- The US Department of Labor and Vice President JD Vance announced the action affecting eight major IT firms, including Microsoft, Infosys, Tata Consultancy Services, and Wipro.
- What
- The administration suspended the firms from the PERM employment-based Green Card process and said it would not accept or process their related applications.
- Where
- The United States.
- When
- Thursday, October 8; the article does not specify the year.
- Why
- Officials said the firms had abused foreign-worker programs and prioritized foreign workers over American workers.
Administration’s position
Companies’ responses
Foreign-worker hiring
Administration’s position
Officials said the firms relied on foreign-worker programs and that American workers should be given priority.
Companies’ responses
Microsoft said most of its H-1B applications were for extensions or status changes, and said it pays H-1B employees the same as comparable employees.
Effect of the PERM suspension
Administration’s position
The administration described the action as a step to address fraud and abuse in foreign-worker programs.
Companies’ responses
Tata Consultancy Services said its low number of recent PERM applications meant the suspension was not expected to affect its workforce strategy or customer engagements.
Key facts
- Program
- PERM, or Program Electronic Review Management, is a labor-certification step employers generally need before sponsoring a foreign worker for an employment-based Green Card.
- Action
- The Department of Labor said it would accept no new or process no pending PERM applications involving the suspended firms.
- Companies named
- The article names Cognizant, Adobe, Infosys, Tata, Wipro, HCL, Capgemini, and Microsoft.
- Official allegation
- Labor Secretary Keith Sonderling said the firms had promoted foreign workers over US workers; Vice President JD Vance accused Microsoft of H-1B fraud.
- Potential worker impact
- Employer-sponsored Green Card processes could be delayed or blocked; some H-1B workers nearing the six-year limit may face additional complications.
- Microsoft response
- Microsoft said most of its roughly 6,000 H-1B applications in fiscal year 2026 were extensions or status changes for current employees, and disputed Vance’s claims.
- Tata Consultancy Services response
- The company said its PERM applications had been in single digits over the previous two years and that it did not expect the suspension to affect its workforce strategy or customer engagements.
Quotes
Keith Sonderling
US Secretary of Labor who announced the suspensions.
“I am hereby suspending from the Permanent Labor Certification Program (PERM) some of the largest IT outsourcing firms in the world — Cognizant, Adobe, Infosys, Tata, Wipro, HCL, and Capgemini”
firstpost.com
Microsoft
Technology company responding to accusations about its H-1B hiring.
“We believe in the strength and talent of the American workforce. That is why the vast majority of Microsoft employees in the United States are Americans.”
firstpost.com
Sources
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