The US Department of Labor has ordered the suspension of Infosys, TCS, Wipro, HCL and Cognizant from the Permanent Labor Certification (PERM) program, citing alleged irregularities in the process used for foreign workers seeking permanent residency.
PERM is the mechanism through which employers obtain certification from the Labor Department before filing for a worker’s green card. Under the program, employers must demonstrate that no qualified and willing US workers are available for the specific role.
The suspension is expected to create pressure for Indian IT firms that employ large numbers of Indian professionals in the US, and it may also affect employees aiming for permanent residency. The order does not cancel H-1B visas or prevent hiring under that visa category, but it blocks these companies from filing PERM applications, and pending cases will also be put on hold.
Following complaints and an investigation, the suspension list also includes Microsoft, Adobe and Capgemini. The report highlighted a controversy involving Microsoft, noting that in 2025 the company received more than 6,000 H-1B visas and filed 3,632 PERM applications, while US Vice President JD Vance alleged that the firm laid off 6,000 American employees the same year.
