US H-1B crackdown: Tata, Infosys, Cognizant among 8 IT firms barred from Green Card filing| What it means for Indians
The US government said the decision was aimed at protecting American jobs, arguing that hiring foreign workers through such programmes could affect employment opportunities for US citizens.
PTC News Desk: In a major setback for Indians, the United States has suspended several major companies, including Cognizant, Infosys, Tata, Wipro and HCL, from the Permanent Labour Certification Programme (PERM). The move could delay green card applications for Indian employees working in the US on H-1B visas.
The US government said the decision was aimed at protecting American jobs, arguing that hiring foreign workers through such programmes could affect employment opportunities for US citizens.
US Labour Secretary Keith Sonderling announced the decision on Thursday. Other affected companies reportedly include global firms such as Capgemini, Microsoft and Adobe. He was accompanied by the head of the US Anti-Fraud Task Force and Vice President JD Vance.
"I am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini," Sonderling said.
He said the US government will not accept "any new or process" any pending permanent labour certification applications involving these companies.
"Since 2009, just these companies alone have requested almost three million foreign workers. They've received over 230,000 H-1B visa approvals and over 100,000 permanent labour certifications," Sonderling added.
What Is PERM and Why Is It Important?
PERM stands for Permanent Labour Certification. It is a process that employers generally need to complete before sponsoring foreign workers for certain employment-based green cards.
Under the process, employers must demonstrate to the US Department of Labour that there are no qualified, willing and available American workers for the position. They must also show that hiring a foreign employee will not negatively affect the wages or working conditions of similarly employed US workers.
Once the PERM process is completed, employers can generally proceed to the next stages of the employment-based green card application.
How Could suspension affect Indian employees?
Indian professionals account for a large share of approved H-1B visa applications each year. The latest move comes as President Donald Trump’s administration continues to tighten immigration rules, saying it wants to protect jobs for American workers.
The suspension could delay or prevent affected companies from starting new PERM applications for their employees while the restrictions remain in place. Indian H-1B workers who have not yet begun the PERM process could face longer waits before their employers can sponsor them for permanent residency.
According to Darubra, employees whose companies have not yet filed their PERM applications cannot begin the process while their employers remain suspended from the programme.
For many Indian professionals, the employment-based green card process is an important route from temporary work status towards permanent residency in the US.
The longer the suspension continues, the greater the potential delay for employees waiting for their companies to begin or advance their green card applications.
Does PERM suspension affect H-1B visa holder ?
The suspension of the PERM programme does not automatically affect the H-1B visa status of Indian employees working in the US. Employees who have valid H-1B status can continue to live and work in the US as long as they maintain their legal status, even if their employer has been suspended from the PERM programme.
According to Darubra, the suspension does not affect an employee’s valid H-1B status or their ability to stay and work in the US.
In simple terms, Indian IT professionals working for companies such as TCS, Infosys, Wipro and HCL will not automatically lose their H-1B visas because of this action. However, their employers’ ability to begin the PERM process for green card applications could be delayed.