Major crackdown on Green Cards: What is PERM program & which IT firms has US suspended

The US has suspended eight major technology companies, including Microsoft, Tata, Infosys and Wipro, from the Permanent Labour Certification (PERM) programme, in a major crackdown on the use of foreign workers for jobs that the government says could be filled by Americans. The move was announced by Vice President JD Vance, Labour Secretary Keith Sonderling and Attorney General Todd Blanche under the US Anti-Fraud Task Force.The Department of Labour said it would not accept new or process pending PERM applications involving the companies. Sonderling said the firms alone had requested almost three million foreign workers since 2009, securing more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications.Vance singled out Microsoft, accusing it of laying off 6,000 American workers in 2025 while obtaining more than 6,000 H-1B approvals and filing 3,682 PERM applications. "Microsoft laid off 6,000 American workers in 2025 after certifying that it could not find qualified American employees," Vance said.Which IT firms are suspended from PERM programme:MicrosoftAdobeCognizantInfosysTataWiproHCLCapgeminiSonderling said the suspensions covered some of the world's largest IT outsourcing companies. He said Microsoft and Adobe were being suspended due to multiple active federal investigations, while the other firms were also targeted as part of the broader crackdown.Indian professionals account for more than 70% of approved H-1B petitions annually, making the move particularly significant for Indian technology workers seeking permanent residency in the US.What is PERM visa and how does it work?PERM, or Permanent Labour Certification, is not itself a visa. It is a labour certification process administered by the US Department of Labour that is required for most employment-based green card applications.Under the system, a US employer must establish that there are not enough qualified, willing and available American workers for a particular job, and that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.The process generally begins with the employer identifying a permanent, full-time position and determining its minimum requirements and duties. The employer then obtains a prevailing wage determination from the Department of Labour.The employer must also complete the required recruitment and notification process to demonstrate that it has sought qualified US workers. After completing these steps, it submits the PERM application to the Department of Labour, usually through the online FLAG system. If the labour certification is approved, the employer can use it as a step towards filing the relevant employment-based immigrant petition with US Citizenship and Immigration Services (USCIS).You use AI every day. Now get your AI Quotient. Take the AIQ test.