US Suspends PERM Processing for Major Technology Firms

Context

In October 2026, the US Department of Labor suspended eight major technology companies from filing new applications and processing pending cases under the PERM programme, citing alleged misuse of employment-based immigration rules.

About the PERM Programme

1. PERM (Program Electronic Review Management) is a US Department of Labor process generally required before employers can sponsor foreign workers for certain employment-based Green Cards.
2. Employers must obtain a prevailing wage determination and conduct prescribed recruitment to demonstrate that hiring a foreign worker will not adversely affect US workers’ wages and working conditions.
3. Labour certification is one stage of the permanent-residency process; it does not itself grant a Green Card.

Companies Affected

The eight companies are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech and Capgemini.

PERM and H-1B: Key Difference

1. H-1B visa: Allows eligible foreign professionals to work temporarily in the US in specialised occupations.
2. PERM certification: Supports an employer-sponsored application for permanent residency.
3. The suspension concerns PERM processing. It does not automatically cancel existing H-1B status, previously approved labour certifications or issued Green Cards.

Impact on Indian Professionals

1. Green Card delays: Employees sponsored by the affected employers may face uncertainty because new PERM applications are not being accepted and pending cases are on hold.
2. H-1B extensions: The normal H-1B stay limit is generally six years. Extensions beyond this period depend on specific statutory conditions. The suspension may complicate the qualifying labour-certification process for some workers, but does not automatically make every affected employee ineligible for an extension.
3. Industry exposure: Reported industry analysis indicates that Indian IT firms accounted for less than 2% of PERM applications filed between October 2024 and September 2025. This is an industry estimate of filings, not a US government statistic or a measure of the proportion of workers affected.
4. Company response: Microsoft disputed the administration’s allegations and said most of its H-1B applications in the previous fiscal year involved extensions or changes of status for existing employees. This represents the company’s position, not an independent finding.

India’s Response and Way Forward

1. NASSCOM, India’s IT industry association, has highlighted the importance of skilled-worker mobility and the sector’s growing emphasis on local hiring in the US.
2. Affected employers should strengthen immigration compliance and communicate the implications to employees.
3. Indian professionals should seek qualified immigration advice based on their individual status and eligibility for extensions.
4. India should expand high-value domestic technology employment and diversify international career opportunities.

Conclusion

The suspension highlights the vulnerability of employer-sponsored immigration pathways to changes in US policy. Its consequences will depend on the duration of the restrictions and the circumstances of individual workers. Predictable immigration procedures remain important for skilled-worker mobility and India–US economic cooperation.

UPSC-oriented FAQs

Q1. What is the PERM programme?

PERM is a US labour-certification process generally required for employer-sponsored Green Cards in certain employment-based categories. It seeks to protect the wages and working conditions of US workers.

Q2. Which companies are affected by the suspension?

The eight companies are Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCLTech and Capgemini.

Q3. How does PERM differ from an H-1B visa?

H-1B permits temporary employment in specialised occupations, whereas PERM supports the process of obtaining permanent residency through an employer.

Q4. Does the suspension automatically cancel existing H-1B visas?

No. The suspension concerns PERM processing and does not automatically cancel existing H-1B status or issued Green Cards.

Q5. Why is the suspension significant for Indian professionals?

It may delay employer-sponsored Green Card applications and complicate long-term immigration planning for some workers.

Q6. What is the broader significance for India–US relations?

The development highlights the importance of predictable immigration rules for skilled-worker mobility, technology-sector employment and bilateral economic cooperation.