US Government Suspends Major IT Companies from the PERM Program : What Indian Job Seekers Need to Know

Introduction: A Major Development for Indian IT Professionals

The United States has taken a significant step in its employment-based immigration policy by suspending eight major technology companies from participating in the Permanent Labor Certification (PERM) Program. The announcement, made on October 8, 2026, has raised concerns among Indian IT professionals, overseas job seekers, H-1B visa holders, and employees who were hoping to obtain US permanent residency through employer sponsorship.

The companies named in the announcement include Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Cognizant, Capgemini, Microsoft, and Adobe.

The US Department of Labor has stated that it will not accept new permanent labor certification applications involving the affected companies or process their pending applications under the announced suspension. The administration has linked the action to allegations of misuse of employment-based immigration programs and its stated objective of protecting American workers.

For thousands of Indian professionals who have built their careers around the US technology industry, the development creates fresh uncertainty about long-term employment, permanent residency planning, and career mobility.

However, it is equally important to understand what this announcement does not mean. It does not automatically cancel existing Green Cards, terminate all employment contracts, or invalidate every H-1B visa held by an employee of one of the named companies.

This article explains the development, the role of PERM in the Green Card process, the companies named, the possible consequences for Indian professionals, and the practical steps job seekers can take while the situation develops.

Important: Immigration policy can change quickly. This article explains the reported position as of October 10, 2026, and is intended for general career information rather than individual legal advice.

1. What Exactly Happened on October 8, 2026?

According to reporting published on October 8 and 9, 2026, US Labor Secretary Keith Sonderling announced the suspension of six major IT outsourcing companies, alongside Microsoft and Adobe, from the PERM Program.

The administration said the affected companies would no longer be able to proceed with new PERM applications through the program while the suspension remained in effect. Pending applications involving the companies were also reported to be on hold.

The announcement forms part of a broader effort by the Trump administration to scrutinise foreign-worker employment programs, including arrangements associated with H-1B visas and employer-sponsored permanent residency.

The administration has argued that certain employers may have used immigration programs in ways that disadvantaged American workers. These are the government’s stated allegations and rationale; they should not be treated as proof that every company or every employee named in the announcement has committed wrongdoing.

The action is particularly significant because the named companies employ technology professionals across software development, IT consulting, cloud computing, engineering, cybersecurity, business analysis, and other specialised fields.

Many international employees working in the United States depend on employer sponsorship to pursue permanent residency. When an employer’s access to an important part of that process is suspended, the effect may extend beyond a single application and influence long-term career planning.

2. Which Companies Have Been Suspended from the PERM Program?

The announcement identifies eight major technology and IT services companies.

1. Tata Consultancy Services (TCS)

TCS is one of India’s largest IT services companies, providing technology consulting, software development, enterprise transformation, and digital services to clients around the world.

Indian professionals working in the United States through TCS may include software engineers, project managers, enterprise application specialists, business analysts, data professionals, and technology consultants.

For an employee whose employer-sponsored Green Card process depends on a new PERM application, the suspension may create uncertainty about the next step. The actual effect will depend on the employee’s existing immigration documents, application history, and any subsequent government instructions.

2. Infosys

Infosys is a major Indian multinational offering digital transformation, consulting, technology services, cloud solutions, and enterprise software expertise.

Its international workforce includes professionals in software engineering, data analytics, artificial intelligence, cybersecurity, testing, consulting, and project delivery.

Employees pursuing employer-sponsored permanent residency should seek written clarification from their company’s immigration team about the status of their particular case. They should not assume that every application or immigration category is affected identically.

3. Wipro

Wipro provides IT consulting, engineering services, business technology solutions, and digital transformation services to customers across multiple industries.

The suspension may affect employees whose route to permanent residency requires a PERM application involving Wipro. The timing and seriousness of the impact will depend on the stage their cases had reached before the announcement.

4. HCL Technologies (HCLTech)

HCLTech operates across software services, engineering, cloud computing, digital workplace solutions, cybersecurity, and enterprise technology.

Professionals working in these areas may be concerned about whether the suspension changes their existing sponsorship arrangements or future Green Card plans.

The correct approach is to obtain case-specific guidance rather than assume that a general news announcement provides all the answers.

5. Cognizant

Cognizant is a multinational IT services and consulting company with a substantial presence in the US technology market.

It employs professionals in application development, healthcare technology, financial services technology, cloud transformation, data engineering, and business consulting.

Employees whose PERM applications were planned or pending may need to discuss revised timelines with their employer’s immigration team.

6. Capgemini

Capgemini is a global consulting, technology, engineering, and digital transformation company.

Its international employees work in software development, consulting, enterprise systems, data, cloud infrastructure, and engineering.

As with the other named companies, the relevant question for each worker is whether their specific permanent labor certification case falls within the scope of the suspension and what options remain available under current rules.

7. Microsoft

Microsoft is a leading global technology company operating in cloud computing, enterprise software, artificial intelligence, cybersecurity, productivity software, and digital services.

The company’s inclusion is significant because it demonstrates that the reported action is not restricted to Indian-headquartered IT outsourcing businesses.

Microsoft employees pursuing employment-based permanent residency should distinguish the status of a PERM application from their existing employment authorisation and other immigration documents.

8. Adobe

Adobe is known for digital media, creative software, document management, and digital experience products.

Its inclusion alongside Microsoft and the IT services firms broadens the impact of the announcement across the technology sector.

Affected employees should confirm the precise scope of the restriction with their employer and qualified immigration counsel.

A note on the company list: These are the eight companies named in the reported announcement. The suspension should not automatically be interpreted as a general prohibition covering every technology company, every US employer, or every employment-based immigration category.

3. What Is the PERM Program?

PERM stands for Program Electronic Review Management. It is the US Department of Labor’s system for processing permanent labor certification applications.

For many employer-sponsored employment-based Green Card cases, PERM is an important early step.

In general, an employer must complete a labour-market test and demonstrate that there are not sufficient available, qualified, and willing US workers for the relevant job opportunity under the applicable requirements. The employer must also satisfy the relevant wage and recruitment obligations.

The purpose is to help ensure that sponsoring a foreign worker for a permanent position does not adversely affect similarly employed US workers.

The process typically involves several stages:

The employer defines the permanent job opportunity and reviews the applicable requirements.
The employer obtains the required prevailing-wage determination.
The employer completes the prescribed recruitment steps and considers qualified US applicants.
Where the legal requirements are met, the employer submits the PERM application to the Department of Labor.
Following certification, the employer may generally proceed with an immigrant petition, commonly Form I-140, subject to the applicable requirements.
The employee may later apply for adjustment of status in the United States or complete immigrant-visa processing abroad when eligible and when a visa number is available.

Not every Green Card category requires PERM. Certain employment-based categories have different requirements or may qualify for exceptions.

PERM is also not the Green Card itself. Certification is one step in a broader immigration process, and successful completion of one stage does not guarantee approval of every subsequent stage.

This distinction is central to understanding the October 2026 announcement.

4. What Is the Difference Between PERM, H-1B and a Green Card?

These terms are often used together in discussions about US jobs, but they serve different purposes.

PERM labor certification

PERM concerns an employer’s application to establish that the requirements for a particular permanent job opportunity have been met under US labor-certification rules.

Where PERM is required, a suspension can interrupt the employer’s ability to move a case forward through that route.

H-1B visa

The H-1B is a temporary US employment classification for qualifying specialty occupations. It allows eligible employers to employ eligible foreign professionals, subject to immigration rules and the terms of their authorisation.

An H-1B visa and a Green Card are not interchangeable. A person may have valid H-1B employment authorisation while still waiting for permanent residency.

Green Card

A Green Card provides lawful permanent resident status in the United States. Employment-based immigration is one route to obtaining it, but the process involves requirements beyond PERM.

A PERM suspension may therefore delay or obstruct a particular employment-based route without automatically cancelling a worker’s existing temporary status or an already-issued Green Card.

Quick comparison

Term	Main purpose	What the suspension may mean
PERM	Labour certification for certain permanent employment cases	New or pending applications involving the affected companies may be blocked or paused
H-1B	Temporary employment in qualifying specialty occupations	Not automatically cancelled by a PERM suspension
I-140	Employer immigrant petition or qualifying self-petition, depending on the category	Case-specific consequences require review
Green Card	Lawful permanent residence	An existing Green Card is not automatically cancelled by this announcement

Workers should verify their own status and documents. A news report cannot determine the validity of an individual visa, petition, or immigration benefit.

5. Why Has the US Government Taken This Step?

The administration has presented the action as part of its effort to protect US workers and investigate alleged misuse of employment-based immigration programs.

Protecting American workers

The government argues that employers should make appropriate efforts to recruit qualified US workers before sponsoring foreign nationals for permanent positions where the law requires such a process.

Labour certification exists partly to test the relevant labour market and protect the wages and working conditions of US workers.

Scrutiny of foreign-worker hiring

H-1B and other employment-related immigration programs have been subjects of public debate for years. Supporters argue that skilled international professionals help businesses fill specialised roles, develop technology, and compete globally.

Critics have raised concerns about the use of temporary visas, outsourcing arrangements, wage practices, and the effects of some hiring models on domestic employment.

The latest announcement reflects the administration’s stated position that closer scrutiny is necessary.

Allegations of program abuse

According to reporting on the announcement, the Labor Department cited large cumulative numbers associated with the affected firms’ use of foreign-worker programs.

Labor Secretary Keith Sonderling reportedly said that, since 2009, the companies had collectively requested nearly three million foreign workers, received more than 230,000 H-1B approvals, and obtained more than 100,000 permanent labor certifications.

These figures were presented as part of the administration’s explanation for the action. They should not be interpreted as a count of current employees, a count of people who have obtained Green Cards, or proof that every request was improper.

A request for a worker, an H-1B approval, a labor certification, and an issued Green Card are different measures.

A broader immigration-policy shift

The suspension is part of a wider policy debate over how the United States should balance domestic employment, international talent, business competitiveness, and legal immigration.

For employers and job seekers, the immediate concern is the practical application of the announced restriction and whether further guidance, legal challenges, or policy changes follow.

6. What Does This Mean for Indian IT Professionals?

India has a large pool of technology professionals working for multinational companies, including many who have moved to the United States for employment.

For some of these professionals, employer sponsorship is central to their plans for long-term residence. The reported suspension creates several possible concerns.

Delays in permanent residency

An employee whose employer-sponsored Green Card process depends on a pending PERM application may face additional uncertainty if that application cannot be processed during the suspension.

Employees who were preparing to begin the process may also need to reassess their timelines.

Uncertainty about future applications

A professional who has worked in the United States for several years may have planned career decisions around an expected Green Card filing.

The suspension may affect that planning, especially where the employee has limited time remaining under a temporary immigration status.

However, the consequences depend on the individual case and applicable law. It is not possible to conclude from the company name alone that a particular worker will lose eligibility or have to leave the country.

Career decisions may become more complicated

Some employees may consider transferring to another employer, moving to a different role, or exploring opportunities outside the United States.

Changing employers is not a guaranteed solution. A new employer must independently meet the applicable requirements, and a move may affect an existing immigration strategy.

Employees should seek qualified legal advice before making decisions based on an assumed immigration benefit.

Family and financial planning

For workers whose long-term plans depend on permanent residence, uncertainty can also influence decisions about housing, education, savings, and family arrangements.

These are understandable concerns, but families should avoid making urgent decisions based only on social media posts or headlines. The details of each person’s immigration status matter.

7. Does the Suspension Mean All H-1B Visas Have Been Cancelled?

No. The reported PERM suspension should not be confused with a blanket cancellation of H-1B visas.

The Indian Ministry of External Affairs reportedly clarified on October 9, 2026, that the suspension would not affect the validity of existing H-1B visas or the status of their holders and dependants. The reported concern is principally the affected employers’ ability to move cases forward through the PERM process.

Nevertheless, workers must continue to comply with the conditions of their own immigration status. Employment termination, a change of employer, a change in work arrangements, visa expiry, and other events can raise separate legal issues.

For this reason, employees should not assume that every aspect of their immigration position is unaffected merely because PERM and H-1B are different programs.

8. What Happens to Employees With Pending PERM Applications?

This is one of the most important questions for affected workers.

The announcement, as reported, states that the government will not process pending PERM applications involving the named companies while the suspension applies.

However, a worker’s position may differ depending on the stage reached before the announcement.

Scenario A: The employer has not filed PERM

If an employee was waiting for the employer to start the process, the suspension may prevent the planned filing from proceeding while the restriction remains in effect.

The employee should ask the employer whether any official guidance applies to their role and what options, if any, are available.

Scenario B: PERM has already been filed and remains pending

A pending application may be affected by the reported pause. The employee should obtain confirmation of the filing date, case number, and current case status.

The employee should also ask the employer’s immigration counsel whether the government has issued additional instructions concerning the application.

Scenario C: PERM has already been certified

Certification is different from a pending PERM application. The consequences of the suspension for a previously certified case are not established simply by the general announcement.

The employer and immigration counsel should review the certification, any subsequent I-140 filing, applicable deadlines, and the current government instructions.

Scenario D: The employee has an approved I-140 petition

An approved I-140 is a distinct stage from PERM. An existing approval should not automatically be treated as cancelled solely because the employer’s access to PERM has been suspended.

Nevertheless, the effect on future steps, employment changes, extensions, or other immigration questions depends on the facts and applicable law.

Employees should not rely on assumptions about priority dates, portability, or visa extensions without reviewing their case.

Scenario E: The employee already has a Green Card

An individual who already holds lawful permanent resident status is in a different position from someone waiting for employer sponsorship.

The announcement does not, by itself, mean that all existing Green Cards have been cancelled. Any concern about an individual status document should be reviewed through the appropriate official channels.

9. Will the Suspension Affect the US Job Market?

The immediate effect on the overall US job market is uncertain. The suspension is directed at a specific immigration pathway involving named employers; it is not a general closure of all US job vacancies to foreign professionals.

Several outcomes are possible.

First, the affected companies may reassess how they manage immigration sponsorship and international recruitment.

Second, some employees may experience uncertainty about long-term relocation and retention, potentially influencing their career choices.

Third, other employers may continue recruiting international professionals through lawful routes available to them, provided they satisfy the applicable requirements.

Fourth, employers may place greater emphasis on local hiring, domestic training, and workforce planning if the policy environment becomes more restrictive.

The extent of these effects will depend on the duration and scope of the suspension, any legal proceedings, further government guidance, and the companies’ responses.

Job seekers should therefore avoid interpreting this development as proof that all US technology recruitment has stopped.

10. What Should Current Employees of These Companies Do?

If you work for one of the eight companies and are concerned about your Green Card application, a careful and documented approach is advisable.

Step 1: Confirm your current immigration stage

Determine whether you are waiting for a PERM filing, have a pending PERM application, hold an approved labor certification, have an I-140 petition filed or approved, or have already obtained permanent residence.

Do not rely on a general description from a colleague or online discussion.

Step 2: Contact the company’s immigration team

Ask for a written update about your case and whether the company has received official instructions relating to the suspension.

Useful questions include:

Has my PERM application been filed?
What is the current status of the case?
Does the suspension apply to my specific application?
Are there any deadlines or actions I need to be aware of?
Has the company received further guidance from its immigration counsel?

Step 3: Preserve your documents

Keep copies of relevant immigration documents, notices, filing receipts, approval notices, employment records, and correspondence.

Maintain appropriate privacy and use authorised company channels when requesting or storing confidential records.

Step 4: Review your immigration timeline

If your current status has an expiry date or your circumstances are changing, discuss the timeline with qualified immigration counsel.

Do not assume that an application pause automatically extends a visa, employment authorisation, or period of lawful stay.

Step 5: Avoid rushed resignation decisions

Resigning or changing employers without understanding the immigration implications can create additional complications.

A new employer does not automatically inherit or resolve every aspect of a previous employer’s sponsorship process.

Seek advice before making a major employment decision.

11. What Should Indian Job Seekers Planning to Work in the USA Do?

The announcement may be particularly worrying for students, fresh graduates, experienced software engineers, and professionals hoping to relocate to the United States.

The most sensible response is to continue building employability while being realistic about immigration uncertainty.

Focus on in-demand technical skills

Candidates can strengthen their profiles in areas such as:

Cloud engineering and infrastructure.
Artificial intelligence and machine learning.
Data engineering and analytics.
Cybersecurity and information security.
Enterprise software and application development.
DevOps, platform engineering, and automation.
Quality assurance and software testing.
Product management and business analysis.

These are broad career areas, not a guarantee of visa sponsorship or employment.

Improve your resume and professional profile

Create a clear, achievement-focused resume that demonstrates technical skills, project experience, measurable results, and relevant qualifications.

Candidates with experience should highlight the business impact of their work rather than relying on generic statements such as “responsible for software development.”

Freshers should emphasise internships, practical projects, certifications, technical portfolios, and demonstrable problem-solving ability.

Research employers carefully

If you are applying for US roles, investigate the employer’s business, location, job requirements, and stated sponsorship policy.

A vacancy being advertised online does not mean that the employer will sponsor a visa or Green Card for every applicant.

Ask clear questions about sponsorship at an appropriate stage of the recruitment process.

Consider global career options

The United States is not the only country with a technology sector. Depending on your qualifications, experience, language skills, and eligibility, you may also explore opportunities in India and other international markets.

Your decision should be based on the complete employment offer, immigration rules, salary, cost of living, career prospects, and personal circumstances—not only the destination country’s reputation.

12. Should Employees Leave the Affected Companies?

There is no universal answer.

Some employees may prefer to remain with their current employer while the legal and administrative position becomes clearer. Others may have independent reasons to explore new roles, including career growth, compensation, location, or job security.

However, changing employers solely to escape the PERM suspension may not solve the problem.

A prospective employer must have its own ability and willingness to sponsor the employee, and the applicable immigration requirements must still be satisfied. Moving companies can also affect an individual’s case in ways that depend on the stage of the process.

Before switching jobs, employees should consider:

Their current visa and employment authorisation.
The stage of their permanent residency application.
The prospective employer’s sponsorship policies.
Any applicable deadlines and eligibility requirements.
The financial and professional consequences of the move.

The best decision is one made after reviewing the facts with qualified immigration counsel, rather than responding to a headline alone.

13. Could the Suspension Affect Future H-1B Extensions?

The relationship between PERM, I-140 petitions, and H-1B extensions is complex.

Some workers may qualify for H-1B extensions beyond the usual six-year limit under particular provisions of US immigration law. Certain provisions can depend on the timing of a labor certification or immigrant petition; other provisions may depend on an approved I-140 and additional conditions.

A pause in PERM processing could complicate planning for some employees, particularly those who have not yet completed the necessary steps.

But it would be incorrect to say that every affected H-1B holder will automatically lose the ability to extend their status.

Eligibility depends on individual facts, the applicable statutory provisions, filing dates, and the status of any immigrant petition. Employees approaching an important deadline should seek prompt, case-specific legal advice.

14. What Could Happen Next?

As of October 10, 2026, the reported suspension has created significant uncertainty. The future position will depend on official guidance and any subsequent developments.

Several issues deserve attention.

Further government clarification

Employers and workers may need more detailed instructions about the exact scope of the suspension, the handling of pending cases, and the treatment of applications that have already reached later stages.

Legal challenges or administrative developments

Affected companies may consider their available legal or administrative options. Whether any challenge is filed, succeeds, or changes the suspension cannot be assumed in advance.

Changes in recruitment strategy

Some employers may review their hiring models, recruitment practices, sponsorship policies, or workforce distribution in response to the new restrictions.

Effects on international talent mobility

If the restriction remains in place, some professionals may reconsider their long-term plans in the United States. Others may continue working under existing authorisations while seeking clarity about permanent residency.

These are possible developments, not confirmed outcomes. Job seekers should monitor official announcements rather than rely on predictions presented as facts.

15. What Does This Mean for Freshers and Students in India?

For fresh graduates and students planning an international technology career, the announcement is a reminder that immigration policy is one of several factors that influence overseas employment.

It does not mean that studying computer science, developing technical skills, or applying for international jobs has become pointless.

However, candidates should avoid making expensive education, relocation, or recruitment decisions on the assumption that a future Green Card will be guaranteed.

A practical career strategy includes:

Build skills that travel across markets. Programming, data analysis, cloud computing, cybersecurity, communication, and project management can be valuable in multiple countries.

Gain practical experience. Internships, projects, open-source contributions, and relevant professional experience can strengthen a candidate’s application.

Understand sponsorship before accepting an offer. An employer’s willingness to recruit an international candidate and its ability to sponsor the required immigration category are separate questions.

Maintain alternative plans. Candidates can compare opportunities in India and other countries while pursuing a US opportunity that fits their qualifications and circumstances.

Verify immigration information. Use official sources and qualified advisers for legal questions. Do not pay a recruiter who promises a guaranteed visa or Green Card.

A flexible career strategy is more resilient than a plan that depends entirely on one employer or one immigration pathway.

16. How Can Employers Respond to the New Environment?

The development is also relevant to human resources teams, recruitment specialists, global mobility managers, and workforce planners.

Employers may need to assess their current immigration cases, identify employees whose applications could be affected, and communicate clearly with their workforce.

Possible priorities include:

Reviewing pending sponsorship cases with qualified immigration counsel.
Identifying upcoming visa and employment-authorisation deadlines.
Communicating the known facts without making unsupported promises.
Reviewing recruitment, wage, and labour-certification documentation.
Evaluating lawful staffing alternatives where appropriate.
Preparing contingency plans for employees and projects affected by uncertainty.

Companies should not assume that a general announcement resolves every question about their legal obligations. They should obtain guidance specific to the scope of the suspension and their individual cases.

For job seekers, an employer’s communication and willingness to explain the situation may also be useful considerations when evaluating career options.

17. Official Resources and Further Reading

Readers can use the following resources to understand the rules and monitor developments:

US Department of Labor: https://www.dol.gov/
US Department of Labor — Foreign Labor Certification: https://www.dol.gov/agencies/eta/foreign-labor
US Citizenship and Immigration Services: https://www.uscis.gov/
USCIS — Working in the United States: https://www.uscis.gov/working-in-the-united-states

The official websites should be used to verify current requirements, filing procedures, and any new government instructions.

Conclusion: Stay Informed, Prepare Carefully, and Keep Your Career Options Open

The reported suspension of TCS, Infosys, Wipro, HCLTech, Cognizant, Capgemini, Microsoft, and Adobe from the PERM Program marks a significant development in US employment-based immigration policy.

For Indian IT professionals pursuing permanent residency through these employers, the most immediate concern is uncertainty about new and pending labor-certification applications. The development may also complicate long-term career planning for some workers, particularly those whose immigration strategy depends on completing specific steps within a certain period.

At the same time, the suspension should not be confused with the cancellation of all H-1B visas, the loss of every employee’s immigration status, or a nationwide ban on technology jobs for foreign professionals.

Employees should confirm their individual case status, preserve their documents, contact their employer’s immigration team, and seek qualified legal advice before making important decisions. Freshers and aspiring overseas professionals should continue developing practical skills, evaluating employers carefully, and maintaining realistic alternatives.

Immigration rules can change, but sound career preparation remains valuable. By separating confirmed information from speculation and planning around their individual circumstances, job seekers can make more informed decisions about their professional future.

Stay connected with MeriJobs.in for career news, international job updates, employment guidance, and practical resources for job seekers.

Disclaimer

This article is intended for general informational and educational purposes only. It summarises publicly reported developments concerning the US Permanent Labor Certification (PERM) Program as of October 10, 2026. Immigration laws, government policies, administrative decisions, and application procedures may change without notice. Although MeriJobs.in endeavours to present information accurately and responsibly, we do not guarantee that all information is complete, current, or applicable to every individual situation.

This content does not constitute legal, immigration, financial, employment, or professional advice. MeriJobs.in is not a law firm, immigration consultancy, government agency, or representative of any company mentioned in this article. Readers should verify important information through official US government sources and consult a qualified immigration attorney or authorised professional before making decisions about visas, Green Cards, employment, relocation, or sponsorship.

The mention of any company does not imply a finding of wrongdoing by every employee or establish any allegation as proven. MeriJobs.in does not guarantee visa approval, Green Card eligibility, employment, recruitment outcomes, or the availability of sponsorship.

Readers rely on this information at their own discretion and risk. MeriJobs.in shall not be responsible for losses, delays, decisions, or consequences arising from reliance on this content, to the extent permitted by applicable law. External links are provided for reference; their content and policies are controlled by their respective publishers. Please contact the relevant authorities or a qualified adviser for case-specific guidance.