U.S. authorities have suspended major technology companies including Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe from the Permanent Labor Certification Program (PERM), according to Labor Secretary Keith Sonderling. The move prevents the affected companies from filing new PERM applications and stops pending applications from being processed during the suspension.
The action is significant for foreign workers seeking employment-based permanent residency in the U.S., including Indian professionals working in the technology sector.
What the PERM suspension means
PERM is a U.S. Department of Labor process generally used by employers sponsoring foreign workers for employment-based permanent residency. Under the process, employers must establish that there are not enough qualified U.S. workers available for the relevant position and that hiring the foreign worker would not adversely affect wages and working conditions for similarly employed U.S. workers.
The suspension does not automatically cancel H-1B status for Indian workers employed by the affected companies. However, it can disrupt or delay the employer-sponsored green card pathway for workers whose permanent residency process depends on PERM.
Vice President JD Vance also accused Microsoft of abusing the H-1B system and replacing U.S. workers with foreign labor. The administration is separately investigating nine universities over alleged misuse of visa programs, adding to its wider scrutiny of foreign-worker and student immigration pathways.
H-1B restrictions add to immigration pressure
The PERM action comes after the Trump administration introduced tighter restrictions on the H-1B program.
In September 2025, the administration imposed a $100,000 payment requirement on certain new H-1B petitions involving workers outside the U.S., subject to specified exceptions. The White House extended the restriction in September 2026 for another year, through September 21, 2027. It said more than 700 petitions had involved the $100,000 payment since the 2025 measure took effect.
For Indian professionals, the PERM suspension and tighter H-1B rules create additional uncertainty around the route from temporary employment to permanent residency.
Q1. What is the US PERM program suspension?
The U.S. Labor Department has suspended several major technology companies from the Permanent Labor Certification Program, preventing new PERM filings and processing of pending applications during the suspension.
Q2. Which companies were suspended from the PERM program?
The companies named in the supplied information are Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe.
Q3. Does the PERM suspension cancel H-1B visas?
No. The supplied information says the suspension does not automatically cancel H-1B status for workers at the affected companies.
Q4. Why does PERM matter to Indian workers?
PERM is generally used by employers sponsoring foreign workers for employment-based permanent residency, making the process important for Indian H-1B holders seeking a green card.
Q5. How long is the H-1B $100,000 requirement extended?
The Trump administration extended the restriction for another year, through September 21, 2027, subject to specified exceptions.
