The United States has suspended TCS, Infosys, Wipro, HCL, Cognizant and Capgemini, along with Microsoft and Adobe, from a key step in the green card process. The US Department of Labor says it will not accept new applications or process pending ones from these eight companies. Thousands of Indian IT professionals working in the US could see their path to permanent residency put on hold.
What happened
- Who: TCS, Infosys, Wipro, HCL, Cognizant, Capgemini, Microsoft and Adobe.
- What: Suspended from PERM labour certification, the first step in most employer-sponsored green cards.
- Effect: No new PERM filings accepted and pending ones not processed for these firms.
- Announced: Thursday, October 8, by US Labor Secretary Keith Sonderling, with Vice President JD Vance.
- Reason given: Protecting American jobs, and active federal investigations.
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What is PERM and why it matters
Most employment-based green cards start with PERM, or Permanent Labor Certification. The employer must show the US Department of Labor that it could not find a qualified American worker for the job. Only after PERM is approved can the company file the next form (I-140) with US immigration authorities. Without PERM, the process cannot start.
| Step | What happens | Affected by suspension? |
|---|---|---|
| 1. PERM | Employer proves no qualified US worker is available | Yes: blocked for these 8 firms |
| 2. I-140 | Employer petitions USCIS for the worker | Can’t be filed without step 1 |
| 3. Priority date wait | Worker waits for a visa number (long for Indians) | Delayed |
| 4. I-485 / consular processing | Green card is issued | Delayed |
Why the US took this step
Secretary Sonderling said the companies had taken “hundreds of thousands of jobs” from American workers, citing about 230,000 H-1B approvals and more than 100,000 labour certifications for these firms since 2009. The Labor Department also pointed to several active federal investigations. Vice President Vance singled out Microsoft, saying it laid off American workers while securing thousands of H-1B visas and green cards.
The announcement did not say how long the suspension will last. None of the Indian IT companies had issued a public response at the time of writing.
What it means for Indian IT employees in the US
- If your PERM was pending with one of these companies, it will not be processed for now.
- If your I-140 is already approved, your priority date is generally kept, but check with your company’s immigration lawyer.
- Your H-1B status is not cancelled by this order, but H-1B extensions beyond six years often depend on a pending or approved PERM or I-140.
- Changing employers may restart the PERM process with a new company.
- Talk to a qualified US immigration attorney before making any decision.
Impact on the IT sector
Indian IT firms have reduced their reliance on US visas in recent years by hiring more locally, but they still employ many Indians in the US on H-1B visas. Analysts will watch whether this leads to more local hiring and higher costs. It comes the same week TCS reported a 15% profit rise; read our TCS Q2 results explainer.
Frequently asked questions
Which companies are suspended from the US green card process?
TCS, Infosys, Wipro, HCL, Cognizant, Capgemini, Microsoft and Adobe.
Does this cancel H-1B visas?
No. The order covers PERM labour certification for green cards. It does not cancel existing H-1B visas.
How long will the suspension last?
The US Department of Labor has not said how long it will last.
What should affected employees do?
Contact your employer’s immigration team and a qualified US immigration lawyer to understand your case.