The Trump administration has taken another major step in its immigration crackdown, suspending eight technology companies, including Microsoft, Infosys and Tata Consultancy Services (TCS), from the US Permanent Labour Certification (PERM) programme. The decision could disrupt green-card applications for foreign professionals, including thousands of Indian technology workers.
The announcement was made on Thursday, October 8, by US Vice President JD Vance and officials from the Department of Labor.
What Happened?
The US administration has suspended the following eight companies from the PERM programme:
- Microsoft
- Adobe
- Cognizant
- Infosys
- Tata Consultancy Services (TCS)
- Wipro
- HCL Technologies
- Capgemini
According to the administration, the action follows concerns about alleged misuse of employment-based immigration programmes and possible fraud. Officials said new PERM applications involving the affected companies would not be accepted and pending applications would not be processed under the suspension.
The allegations are part of the administration’s wider effort to scrutinise how companies hire foreign workers and sponsor them for permanent residency.
Why Is Trump Targeting These Companies?
The administration argues that some companies have relied on foreign workers while laying off American employees, potentially disadvantaging US workers.
Vice President JD Vance specifically criticised Microsoft, pointing to its workforce reductions alongside its use of employment-based immigration programmes.
The government says the crackdown is intended to protect American jobs and ensure that companies follow labour certification requirements.
However, the allegations should not be treated as proof that every affected company or employee has committed wrongdoing. The companies may challenge the restrictions, and the impact will depend on the legal and administrative proceedings that follow.
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What Is the PERM Programme?
PERM stands for Permanent Labour Certification. It is generally an important step when a US employer sponsors an eligible foreign employee for an employment-based green card. Under the process, an employer must generally demonstrate that there are not enough qualified and available US workers for the relevant position and that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed American workers.
By suspending PERM processing for these companies, the administration is creating a major obstacle for affected employees who are pursuing permanent residency through their employers.
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Are H-1B Visas Also Suspended?
No. The October 8 announcement does not amount to a blanket suspension of H-1B visas.
The H-1B programme allows eligible foreign professionals to work temporarily in the United States. PERM, by contrast, is associated with the process of obtaining employer-sponsored permanent residency. This means the new restrictions could delay or complicate green-card applications for affected employees, but they do not automatically cancel existing H-1B visas or revoke every worker’s current employment authorisation.
The consequences for individual employees will depend on their immigration status, the stage of their green-card application and how the suspension applies to their case.
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What Does This Mean for Indian IT Workers?
India is a major source of skilled technology professionals working in the United States. Many employees at large IT services companies rely on employer sponsorship when pursuing permanent residency. The suspension could leave some workers facing uncertainty over their green-card timelines, career plans and long-term settlement in the US. Employers may also need to reassess their immigration and workforce strategies.
Indian officials have clarified that the PERM suspension is distinct from the H-1B programme and does not, by itself, affect the validity of existing H-1B visas. However, eligible employees at the affected companies could face disruption to their permanent-residency process.
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What Happens Next?
The immediate concern is whether the affected companies will challenge the suspensions and how quickly the US government will clarify the restrictions.
For workers, the most important step is to distinguish between their current work authorisation and their green-card application. Employees with pending cases should seek advice from their employer’s immigration team or a qualified immigration lawyer before making travel or employment decisions.
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Sources: Associated Press | The Indian Express | US Department of Labor
