US suspends 8 tech firms from PERM process: Full list and what it means

The US administration has suspended eight major technology companies from the employment-based green card process, leaving thousands of foreign professionals, including Indian IT workers, facing uncertainty over their permanent residency plans.The companies named in the October 8 order are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini. The US Department of Labor said it would neither accept new Permanent Labor Certification (PERM) applications involving these firms nor process pending ones.The administration has cited alleged abuse of employment-based immigration programmes and the need to protect American workers. US Vice President JD Vance accused Microsoft of laying off American workers while seeking H-1B approvals and green cards for foreign employees. Cognizant had also faced a suspension of its US green card filings in September amid a probe into possible visa fraud.PERM is a key step in obtaining many employer-sponsored green cards. It requires employers to demonstrate that there are not enough qualified, willing and available American workers for a position and that hiring a foreign worker will not adversely affect wages and working conditions.The suspension does not automatically cancel existing H-1B visas or green cards. However, employees with pending PERM applications could face delays, while those whose employers have not yet filed applications may be unable to begin the usual process through these companies. Workers whose PERM certifications have already been approved are in a different position, as the order does not automatically invalidate existing approvals.The decision could create additional uncertainty for H-1B workers approaching the standard six-year limit, particularly those relying on their green card process to qualify for extensions. Some employees may explore sponsorship through another employer, but applications do not automatically transfer when workers change jobs.The duration of the suspension remains uncertain. JD Vance said it would continue “as long as it needs to”. The affected companies could also challenge the decision in federal court. The impact on individual workers will depend on the status of their immigration cases and the length of the suspension.You use AI every day. Now get your AI Quotient. Take the AIQ test.