International
oi-Swastika Sruti
In the latest development, the United States has taken fresh action against the use of foreign labour programmes, with the administration suspending major technology companies from the PERM (Program Electronic Review Management) labour certification programme, a key step in the process of obtaining employment-based green cards for foreign workers.
The United States suspended major technology companies like Microsoft, Infosys, and Tata from the PERM labor certification program, used for employment-based green cards, amid investigations into alleged misuse and to prioritize American workers.
US Vice President JD Vance announced the suspension involving Microsoft on Thursday, accusing the company of misusing the system and arguing that American companies should give greater priority to US workers.
The US Department of Labor has also been investigating alleged fraud and abuse linked to the H-1B and PERM systems. The department’s inspector general said in July that investigators were looking into schemes involving fraudulent applications and the exploitation of foreign workers.
Reports said the latest action also covers technology companies including Cognizant, Infosys, Tata, Wipro, HCL, Capgemini and Adobe.
What Is The PERM Programme?
PERM stands for Program Electronic Review Management. It is a US Department of Labor process generally used by employers that want to sponsor certain foreign workers for permanent employment in the United States.
Before an employer can move ahead with many employment-based green-card applications, it generally needs labour certification from the Department of Labor.
The process is designed to establish that there are not enough qualified and willing US workers available for the particular job and that employing the foreign worker will not negatively affect the wages and working conditions of US workers.
The Department of Labor continues to maintain PERM as part of its Foreign Labor Certification programmes.
Why Has The US Taken Action?
The Trump administration has stepped up scrutiny of programmes used to employ foreign workers.
Vance said the action against Microsoft followed an ongoing investigation. He argued that companies benefiting from the US economy should also make greater efforts to employ American workers.
According to the Associated Press, Vance said Microsoft would no longer be able to use the PERM route to take H-1B workers through the permanent-residency process while the suspension remains in place.
The administration has accused some companies and labour intermediaries of using immigration programmes in ways that could disadvantage American workers. These remain allegations connected to ongoing investigations, rather than findings of guilt against every company named in reports.
What Does This Mean For H-1B Workers?
The development is important for H-1B workers because many foreign professionals use H-1B status as a temporary work route before their employers seek permanent residency for them.
However, a PERM suspension is not the same as cancelling H-1B visas.
The immediate impact is mainly on the employer’s ability to start or continue the relevant labour-certification process for new green-card cases.
For workers who have already moved further ahead in the green-card process, the impact can be different depending on the stage of their case. For example, a suspension of new PERM filings does not automatically mean that every existing green-card case or H-1B status is cancelled.
Why Indian IT Workers Are Watching The Move
The action has particular importance for Indian technology professionals because Indian IT companies are major participants in the US technology and immigration ecosystem.
Companies such as TCS, Infosys, Wipro, HCL and Cognizant have historically had large numbers of employees working in the US.
The Department of Labor’s own historical PERM data shows the significant role played by major technology companies, including Cognizant, Microsoft, Infosys, Wipro and HCL America, in employment-based labour certification.
Earlier this year, Cognizant separately became the subject of a PERM suspension amid a federal investigation into alleged visa-related fraud. The action stopped the company from filing new PERM applications while the investigation continued.
Does This Mean H-1B Visas Are Being Stopped?
No. The two programmes serve different purposes.
The H-1B programme allows US employers to employ foreign workers in certain specialised occupations on a temporary basis.
The PERM process, in contrast, is connected to the permanent employment and green-card process.
Therefore, an employee affected by a PERM suspension is not automatically losing their H-1B visa or their right to work in the US.
The exact effect will depend on the company involved and the stage of the worker’s immigration case.
US Administration Says American Workers Must Come First
The latest action is part of a wider push by the Trump administration to tighten oversight of foreign-worker programmes.
The Department of Labor’s inspector general said in July that the agency had launched a major investigation into alleged H-1B and PERM fraud, including claims of fraudulent applications, worker exploitation and practices that could undercut American workers.
The administration says stronger enforcement is needed to protect US workers and prevent companies from abusing immigration programmes.
At the same time, the impact on foreign professionals, particularly workers from India who are waiting for employer-sponsored permanent residency, could be significant if similar actions expand to more companies.
What’s NEXT?
The companies affected by the latest action could face delays in starting or progressing certain employment-based green-card cases while investigations continue.
The Department of Labor is already processing a large PERM workload. Its latest processing data showed applications from June 2026 were still in the processing queue, with the average analyst-review time for August cases at 336 calendar days.
