The United States has suspended eight technology companies, including TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe, from the Permanent Labor Certification programme, or PERM. Announced on October 8, 2026, the action stops the US Department of Labor from accepting new PERM applications or processing pending ones involving these employers. It does not cancel H-1B visas, but it can interrupt an important employer-sponsored route to permanent residency for Indian professionals.
India’s foreign ministry has stressed that PERM is separate from H-1B status and criticised restrictions on talent mobility.
Key Highlights
- Eight firms, including TCS, Infosys and Wipro, have been suspended from PERM.
- New and pending PERM labour certification applications involving them will not be processed for now.
- Existing H-1B status is not automatically cancelled.
- Workers starting or advancing employer-sponsored green card cases face the clearest disruption.
What Did the US Suspend and Why Are Tech Firms in Focus?
US Labour Secretary Keith Sonderling announced the action alongside Vice President JD Vance during a wider crackdown on alleged immigration and labour-programme abuse. US officials said the named companies had sought almost 3 million foreign workers since 2009, received more than 230,000 H-1B approvals and obtained over 100,000 permanent labour certifications.
Those figures do not establish wrongdoing by every company. Microsoft and Adobe were separately cited as facing active federal investigations.
The White House Rapid Response post on X also carried Sonderling’s October 8 announcement, naming all eight companies.
TCS has since said its workforce strategy will not be affected. Reuters reported that Indian IT companies represented less than 2% of PERM applications in the previous year, citing ICICI Securities.
What PERM Means for Indian Workers Seeking a Green Card
PERM is not a visa. It is a Department of Labor certification many employers need before sponsoring workers for certain employment-based green cards.
Under the DOL PERM process, employers identify a permanent full-time role, obtain a prevailing wage, conduct required recruitment and show that sufficient qualified and available US workers cannot be found. Hiring the foreign worker must also not adversely affect comparable US wages and working conditions.
The route usually runs in three stages:
1. PERM: The employer completes recruitment and files labour certification.
2. I-140: After certification, the employer generally files an immigrant petition with USCIS.
3. Green card stage: The worker waits for a visa number before adjustment of status or consular processing can proceed.
Delay was already substantial. DOL data showed an average PERM analyst-review time of 336 calendar days for determinations recorded in August 2026.
Why Indian Employees Could Feel the Delay More Sharply
Indian professionals already face long employment-based green card queues because of annual category limits and per-country caps. The US Visa bulletin lists India’s final action date at November 1, 2013 for EB-2 and January 1, 2014 for EB-3.
That does not predict an individual wait, but it shows how many older cases remain ahead.
- H-1B holders: Current status does not disappear because an employer is suspended from PERM.
- Workers without a PERM filing: They may be unable to start this employer-sponsored stage while the suspension remains.
- Pending applicants: Their cases face direct delay because DOL says pending applications involving these companies will not be processed.
- Workers nearing H-1B limits: Timing may become more important where future extensions depend on qualifying green-card stages.
India had already reached its FY2026 EB-2 per-country limit in May before visa numbers reset on October 1.
What Happens Next for TCS, Infosys and Wipro Employees?
The suspension is a company-level PERM restriction, not a blanket cancellation of US work visas for Indian technology professionals. Employees should check their individual case stage rather than assume their H-1B job has ended.
India’s Ministry of External Affairs said on October 9 that H-1B visa holders and dependants are not directly affected. It also said talent mobility benefits both countries and criticised the US action.
Workers with pending PERM cases may need case-specific advice on timelines and extensions. People with approved I-140 petitions or pending adjustment applications can fall under different rules. USCIS also provides portability provisions for some employment-based applicants whose adjustment applications have been pending for at least 180 days.
Does the PERM suspension cancel an H-1B visa?
No. The action targets permanent labour certification at named employers and does not automatically cancel valid H-1B status held by workers or their eligible dependants.
Which companies have been suspended from PERM?
The announced list includes TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe, covering major outsourcing businesses and large US technology employers across the country
What happens to pending PERM applications at these firms?
US officials said pending permanent labour certification cases involving the suspended companies will not be processed, while fresh PERM applications from them will not be accepted.
Why is PERM important for Indian tech workers?
For many employment-based green card cases, PERM is an early employer-led requirement before an I-140 petition and later permanent residency processing can move forward legally
Should affected employees leave their jobs immediately?
No automatic job change follows from this announcement. Employees should first verify their visa, PERM and I-140 stage and seek case-specific immigration advice before acting
US Green Card Suspension: What Indian Tech Workers Need to Know
Are EB-1 Green Cards Running Out?
Why Are H-1B Workers Facing Uncertainty?
Could PERM Delays Affect Indian Employees?
What Happens When Companies Pause Sponsorship?
Can Indian Workers Explore Other Visas?
