The US has temporarily suspended Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech and other major technology companies from the Permanent Labour Certification (PERM) programme, a key step in the process through which US employers sponsor foreign workers for green cards.
PERM is essentially a labour-market test. Before sponsoring an eligible foreign worker for permanent residency, an employer generally has to establish that there are not enough qualified and willing US workers available for the job and that employing the foreign worker will not adversely affect wages or working conditions.
Once the Department of Labour (DOL) certifies PERM, the employer can move to the next stages of the employment-based green-card process, including an immigrant petition with US Citizenship and Immigration Services.
The latest action means the DOL will not accept new or process pending PERM applications involving the affected companies. Microsoft and Adobe are also among the firms suspended, while Capgemini and Cognizant are included in the action.
PERM is not H-1B but the distinction matters
The suspension does not cancel existing H-1B visas. H-1B is a temporary work visa, while PERM is part of the route from temporary employment towards permanent residency.
The immediate impact, therefore, is likely to be on green-card timelines rather than the ability of existing H-1B employees to work in the US. Workers with pending or planned PERM applications could face delays in progressing towards permanent residency.
DOL disclosure data underscores the varying scale of PERM activity among the affected companies. Between October 1, 2025 and June 30, 2026, the department certified 104,028 PERM applications. Microsoft accounted for 1,600 certifications, or about 1.5% of the total, alongside four denials and 79 withdrawals.
Adobe had 182 certifications, HCL 59 and Capgemini 44 certifications, with two denials and 52 withdrawals. TCS had two certified applications under its main US entity.
Infosys, Cognizant and Wipro had no certified applications under their principal entities during the period. However, subsidiary filings show some activity: Infosys-linked entities had eight certifications, Cognizant subsidiary Collaborative Solutions had six, while Wipro had six.
For Indian IT companies, the significance extends beyond the raw number of applications. Indian professionals account for a large share of the US skilled-worker immigration pool and many face lengthy waits for employment-based green cards.
The move could therefore complicate talent retention and long-term workforce planning even if H-1B employment remains unaffected. It also signals that the administration’s scrutiny is extending beyond the entry of foreign workers to the process through which they seek to establish permanent residency in the US.
Nasscom statement
In a statement, the IT industry body said, “The U.S. Department of Labor has today announced the temporary suspension of certain IT companies, including Indian technology companies operating in the U.S., from filing new applications under the Permanent Labor Certification (PERM) programme. While the decision affects a specific immigration pathway, Nasscom has consistently maintained that immigration and skilled talent mobility are two distinct issues and should not be viewed through the same lens.
The H-1B visa programme has historically played an important role in addressing short-term skill gaps in the U.S. and it will continue to be used to address short term talent gap. However, over the past few years, Indian technology companies have significantly reduced their dependence on H-1B visas, while steadily expanding local hiring and building a strong domestic workforce in the U.S. They work with majority of the US fortune 500 companies, enable them to innovate and grow, and generate more local jobs.
Consequently, the number of employees transitioning from H-1B visas to permanent residency through the PERM process is also relatively limited.
Indian technology companies operate across more than 80 countries and have consistently demonstrated their commitment to complying with local laws and regulatory requirements. We are confident that they will continue to adhere to applicable regulations in the U.S. as well.”