4 hrs ago
US PERM Suspension May Barely Affect Indian IT Companies
The US has stopped processing certain paperwork that companies use to help workers seek permanent residency.
The affected companies include several large Indian IT firms, as well as Microsoft and Adobe.
This paperwork, called PERM, is one step toward a work-based green card.
It is different from an H-1B visa, so workers who already have H-1B status do not automatically lose permission to work.
The article says these IT firms had relatively few PERM applications compared with the total filed in the US.
That is why experts do not expect an immediate disruption to their work.
But if the pause lasts a long time, some skilled workers might leave because their path to permanent residency is uncertain.
The companies say they have also increased local hiring and reduced reliance on visas.
The US Department of Labor suspended new and pending PERM applications involving Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe.
PERM is a labor-certification step in the employment-based green-card process; the suspension does not itself cancel workers’ existing H-1B work status.
The article says Indian IT firms collectively accounted for fewer than 1,400 of 117,849 PERM requests in the latest reported period.
It reports 523 approvals for Wipro, 513 for TCS and 393 for HCLTech in FY25, while Infosys had no PERM cases since 2022.
Experts expect little immediate effect on project delivery but warn prolonged uncertainty could increase attrition among experienced US-based employees.
- Who
- The US Department of Labor and the affected companies, including Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe.
- What
- The department suspended acceptance and processing of PERM applications involving the named companies.
- Where
- The United States.
- When
- The suspension was announced on Thursday; the article does not specify the date.
- Why
- US officials cited alleged abuse of the program and said jobs should go to American workers first; the article also refers to active federal investigations.
US officials’ rationale
Critics’ and industry concerns
Purpose and fairness of the program
US officials’ rationale
US Labor Secretary Keith Sonderling and Vice-President JD Vance said the program had been abused and that jobs should go to American workers first.
Critics’ and industry concerns
The article notes that the suspension affects a route to permanent residency for foreign workers; attorney Russell Stamets said the move could be challenged through courts and administrative procedures.
Effect on companies and workers
US officials’ rationale
The administration described the action as cutting off companies it says enabled abuse.
Critics’ and industry concerns
HFS Research chief executive Phil Fersht said existing employees do not immediately lose work authorization, but a prolonged suspension could prompt valued workers to leave and create medium-term risks.
Key facts
- PERM
- A labor-certification process used in the employment-based green-card process.
- Suspension
- The Department of Labor said it would not accept new or process pending PERM applications involving the named companies.
- Total requests
- 117,849 permanent labor requests were filed between October 2024 and September in the latest reported period.
- Company share
- The article says the Indian IT companies collectively had fewer than 1,400 requests, or less than 2% of the total.
- FY25 approvals cited
- Wipro: 523; TCS: 513; HCLTech: 393.
- Infosys
- The article says Infosys had no PERM cases since 2022.
- H-1B visas
- Around 57,000 new H-1B visas were approved for Indians in FY26, down 28% from FY24.
Quotes
Keith Sonderling
US secretary of labor
“The H1-B visa program is meant to allow companies to bring in really the best of the best from outside the United States of America for positions that are completely impossible to fill with American workers. Unfortunately, the program has become rife with fraud.”
livemint.com
“We will not accept any new or process any pending permanent labor certification applications involving these companies.”
livemint.com
Phil Fersht
Chief executive of HFS Research
“I would not expect an immediate project delivery crisis. PERM is not the same as an H-1B or other work visa; so, existing employees do not suddenly lose their ability to work because their green card process is suspended.”
livemint.com
Sources
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