Infosys, TCS, Wipro Among 8 IT Firms Suspended From US Green Card Programme in Major H-1B Crackdown

October 9, 2026

Washington: The United States has suspended eight major technology companies, including Indian IT giants Infosys, Tata Consultancy Services (TCS), Wipro and HCL Technologies, from the Permanent Labour Certification (PERM) programme, a key step in the employment-based Green Card process.

The action, announced by the US Department of Labor on Thursday, October 8, also covers Microsoft, Adobe, Cognizant and Capgemini. The Trump administration has accused the companies of misusing employment-based immigration programmes and taking job opportunities away from American workers. The allegations are part of a wider crackdown on skilled-worker immigration. citeturn928131news2turn928131search12

US Labor Secretary Keith Sonderling announced the suspension alongside Vice President JD Vance and officials involved in the administration’s anti-fraud efforts. Sonderling said the department would not accept new or process pending permanent labor certification applications involving the affected companies.

Full List of 8 IT Companies Suspended by the US

The companies named in the suspension are:

1. Microsoft
2. Adobe
3. Cognizant
4. Infosys
5. Tata Consultancy Services (TCS)
6. Wipro
7. HCL Technologies
8. Capgemini

The companies include major Indian IT service providers with substantial US operations, as well as leading American technology firms. The move could affect foreign professionals whose employers are sponsoring them for permanent residency through the PERM process. citeturn928131search12

Why Has the US Suspended These IT Firms?

The Trump administration says the action is intended to address alleged misuse of employment-based visa programmes and protect jobs and wages for American workers.

Under the PERM process, employers generally need to demonstrate that there are not enough qualified, willing and available US workers for a particular position and that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed American workers.

The labor certification is an important stage in many employer-sponsored Green Card applications. Once the required certification is approved, the employer and worker can proceed with the relevant immigration steps, subject to the requirements of the applicable Green Card category.

Sonderling said the decision targeted some of the world’s largest IT outsourcing companies. The administration has argued that employment-based immigration programmes should not be used to displace American workers or undercut their wages.

JD Vance Targets Microsoft Over American Job Losses

Vice President JD Vance specifically criticised Microsoft during the announcement, alleging that the company had laid off American employees while continuing to use the H-1B visa programme and file applications linked to employment-based permanent residency.

Vance argued that companies should prioritize qualified American workers rather than use foreign-worker programmes to fill positions from which US employees had been displaced. The administration cited Microsoft’s workforce reductions and its use of employment-based immigration programmes as part of its case for increased scrutiny.

Microsoft, however, disputed the characterization of its H-1B filings. In a statement reported by TechCrunch, the company said that most of its H-1B applications in the previous fiscal year were for extensions or changes in the status of existing employees, rather than new hires arriving in the country. It also said its H-1B employees were paid comparably to other employees performing similar work. citeturn928131search8

The allegations against the companies should not be treated as findings of guilt. The suspension comes amid investigations and heightened scrutiny of employment-based immigration programmes.

What Is the PERM Programme and How Does It Relate to a Green Card?

PERM stands for Permanent Labor Certification. Administered by the US Department of Labor, it is generally required for many employer-sponsored employment-based Green Card applications.

The process requires an employer to establish that hiring a foreign worker for a specific position will not adversely affect qualified US workers. After labor certification, the employer may proceed with the relevant immigration petition, followed by further steps required for permanent residency.

The PERM process is distinct from the H-1B visa programme. H-1B visas allow US employers to hire eligible foreign professionals temporarily for specialised occupations, while an employment-based Green Card provides a route to permanent residence.

The suspension concerns the affected companies’ new and pending PERM labor-certification applications. It does not automatically cancel their employees’ existing H-1B visas or Green Cards.

What the Suspension Means for Indian IT Workers

The decision could create uncertainty for Indian professionals working in the US, particularly those relying on their employers to sponsor them for permanent residency.

The immediate implications include:

• Delays in Green Card applications: Workers whose cases depend on PERM certification could face delays while the suspension remains in effect.
• New applications put on hold: The Labor Department has said it will not accept new or process pending labor-certification applications involving the affected companies.
• No automatic cancellation of H-1B visas: Employees do not automatically lose their existing H-1B status because their employer has been suspended from the PERM programme.
• Greater uncertainty over permanent residency: Employees at different stages of the employer-sponsored Green Card process may need to wait for further developments or guidance.

The impact on individual workers will depend on their immigration status and the stage their applications have reached. The suspension does not mean that every employee of the eight companies is barred from obtaining a Green Card through every possible route.

US Widens Scrutiny of Employment-Based Immigration

The suspension is part of the Trump administration’s broader effort to tighten oversight of programmes involving foreign workers and international students.

The administration has also announced investigations involving nine universities over allegations connected to international students and employment-related visa programmes. Officials have argued that the investigations are intended to determine whether such programmes are being used in ways that disadvantage American workers.

For Indian technology professionals, the latest move places renewed attention on the distinction between temporary work visas and permanent residency. While the suspension does not automatically terminate existing H-1B visas, restrictions on the PERM process could disrupt an important route to long-term settlement in the United States.