New Delhi / Washington: The United States on Thursday, 8 October 2026, suspended eight major technology and IT firms from the Permanent Labour Certification Programme, or PERM. PERM is a key step employers usually need before sponsoring foreign staff for an employment based green card. The firms are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini.
US Labour Secretary Keith Sonderling announced the step with Vice President JD Vance, who leads the US Anti Fraud Task Force. The Labour Department said it will not accept new PERM applications involving these companies, and will not process pending ones either.
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What PERM is, in plain words
PERM stands for the permanent labour certification process used by the US Department of Labour. Before many employment based green cards can move ahead, an employer must show two things. First, that there are not enough qualified, willing and available US workers for that job. Second, that hiring the foreign worker will not hurt the wages or working conditions of similar US workers.
Only after that certification can many cases move to later green card stages. For people on H1B visas, which allow temporary skilled work in the US, PERM is often the bridge from a temporary stay towards permanent residency sponsored by the employer.
Which firms were suspended
According to The Hindu, Reuters and other reports, the suspension covers:
- Microsoft
- Adobe
- Cognizant
- Infosys
- Tata Consultancy Services (reported as Tata or TCS)
- Wipro
- HCL Technologies
- Capgemini
Sonderling said that since 2009 these companies had sought almost three million foreign workers, and had received over 230,000 H1B approvals and over 100,000 permanent labour certifications. Reuters noted that Microsoft is the largest PERM filer in labour department data.
What Vance and the Labour Department said
Vance singled out Microsoft. He said the company laid off 6,000 American workers last year while benefiting from 6,300 H1B visas and nearly 3,000 green cards. “There has been no company in the United States, unfortunately, that has abused the system more than Microsoft,” he said, according to Reuters.
He also said some companies post weak job ads and then point to a lack of applicants to justify hiring lower paid foreign workers. On how long the suspension will last, Vance said it would continue “as long as it needs to,” and that the administration wants firms to change how they hire.
Sonderling framed the move as an anti fraud step to protect American jobs. He said the Department would end what he called fraud that had fuelled reliance on foreign labour, and that American businesses should look first to American workers.
How Microsoft and TCS responded
Microsoft pushed back. In a statement reported by Reuters and Firstpost, the company said about 80 per cent of the H1B applications it filed in the last fiscal year were to extend or change the status of current employees, not to hire new workers from abroad. It also said it pays H1B employees the same as other staff doing comparable work, and that most of its US employees are Americans.
TCS said its US workforce strategy is built on hiring local talent across about 31 offices and delivery centres. Firstpost reported that TCS said its PERM applications were in single digits in the last two years, so it does not expect the suspension to disrupt its workforce plan or customer work.
Nasscom, India’s IT industry body, said Indian tech companies in the US have cut their reliance on H1B visas, and that relatively few of their workers sought green cards through PERM, Reuters reported.
What this means for Indian H1B workers
This is a freeze on a green card pathway at these employers, not a mass cancellation of visas overnight. The Times of India and India Today both stress what is and is not affected.
What is affected
- New PERM filings by the named firms will not be accepted.
- Pending PERM applications involving these firms will not be processed while the suspension lasts.
- Workers waiting to start or finish the employer sponsored green card route through these companies can face delays or a block at the PERM stage.
- People nearing the usual six year H1B limit may feel extra pressure, because some extensions beyond six years depend on a labour certification having been filed early enough.
What is not automatically affected
- Existing H1B status is not automatically cancelled by this order.
- Green cards already granted are not automatically cancelled.
- PERM certifications that were already approved are in a different position; the order does not automatically wipe out those approvals, The Times of India reported.
- Workers who have already moved past PERM to later stages may be on a different footing, though each case depends on its own file.
India Today, citing Mint figures for October 2024 to September 2025, said six Indian IT services firms accounted for fewer than 1,400 of 117,849 PERM requests, under 2 per cent of the total. Industry volume looks limited, but the personal impact can still be large for anyone whose file is stuck.
Changing employers does not automatically move a PERM case along. Sponsorship through another company is a fresh process, not a simple transfer.
Wider context
The move sits inside a wider US crackdown on work visas. In September last year, the Labour Department began an enforcement drive called Project Firewall. A White House proclamation also imposed a one time fee of 100,000 US dollars on new H1B petitions for workers hired from abroad, Reuters reported.
For readers planning careers and money goals, calm planning matters more than panic. Our general piece on earning and saving with clear goals is not immigration advice. For everyday tech choices that still shape work life, see useful phone accessories and choosing between smartphones and feature phones.
Short FAQ
Does this cancel H1B visas for Infosys, TCS or Microsoft staff?
No. Reports say existing H1B status is not automatically cancelled. The freeze targets PERM filings linked to the named companies.
Can these firms still hire on H1B?
PERM is the green card labour certification step. H1B is a separate temporary work visa route. This announcement focuses on suspending PERM for these firms.
How long will the suspension last?
Vance said it would last as long as it needs to. Companies may also challenge the decision in court. No firm end date was given in the reports used here.
What should a worker do now?
This article is news, not legal advice. Workers should check the exact stage of their case with their employer and a licensed immigration lawyer before making travel or job decisions.
Sources
- Reuters, Trump administration freezes green cards for Microsoft, IT firms, probes universities, 8 October 2026
- The Hindu (PTI), Cognizant, Infosys, Tata, Wipro and HCL among IT firms suspended from US green card programme, 8 October 2026
- Firstpost, US bars Microsoft, Infosys, TCS and Wipro from Green Card programme: What it means for Indians, 9 October 2026
- The Times of India, US suspends 8 tech firms from PERM process: Full list and what it means, 9 October 2026
- India Today, US targets Infosys, TCS: Indian IT firms account for less than 2 per cent of green card filings, 9 October 2026