In a significant development for Indian IT professionals working in the United States, the US government has suspended leading IT companies TCS, Infosys, Wipro, HCL, Cognizant and Capgemini from the Permanent Labor Certification (PERM) programme. The US Department of Labor has also announced that the same action has been taken against Microsoft and Adobe.
US Labor Secretary Keith Sonderling announced the decision, saying it was taken in light of ongoing federal investigations into these companies and allegations about their practices in hiring foreign workers. Officials, however, have clarified that the companies have not been found guilty of any wrongdoing. The action has been taken in the context of the current allegations and investigations.
Allegations against Microsoft
Sonderling made specific allegations against Microsoft. He said that after laying off about 6,000 American employees in 2025, the company filed thousands of applications for foreign workers, claiming that qualified American workers could not be found. According to him, Microsoft received approval for more than 6,000 H-1B visas, and 3,682 PERM applications were filed. He alleged that nearly 1,000 of these applications were for positions close to the work done by the laid-off American employees.
What is PERM?
PERM is an important process that US companies use to retain foreign employees permanently and to sponsor them for a green card. Under the process, the company must prove that American workers suitable for the job are not available. The H-1B visa is a separate matter: it is used to employ foreign professionals temporarily in jobs that require specialized skills. PERM, by contrast, is a key stage in the green card process through which an employee is kept permanently in the United States.
Impact on employees
The decision is likely to affect Indian IT employees working in the US. Those who need to begin the PERM process afresh for a green card, in particular, may face delays. However, green card cases that have already been approved, as well as I-140 approvals, will not be cancelled automatically. Nor does the action mean that all H-1B visas have been revoked at once.