The United States government has announced the suspension of several major technology companies from the Permanent Labor Certification (PERM) program, raising concerns among thousands of foreign professionals, particularly Indian IT workers employed in the US.
Companies reportedly affected include Tata/TCS, Cognizant, Infosys, Wipro, Capgemini and HCL, among other major technology companies. The move could have significant consequences for employees whose employers are sponsoring them for US permanent residency or Green Cards.
What Is the PERM Program?
PERM, or Program Electronic Review Management, is a labor-certification process administered by the US Department of Labor. It is generally an important first step when a US employer wants to sponsor a foreign worker for an employment-based Green Card.
Under the process, an employer generally has to demonstrate that there are not sufficient qualified and willing US workers available for the position and that employing the foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.
A simplified Green Card pathway can look like:
H-1B Visa → PERM Labor Certification → I-140 → Green Card
What Does the Suspension Mean?
The suspension means affected companies face restrictions on using the PERM program for their foreign workers. This can create delays for employees who are waiting for their employers to begin or complete the labor-certification stage of their Green Card process.
For an Indian IT professional working in the US on an H-1B visa, this could be particularly significant because many Indian professionals rely on employer-sponsored immigration pathways to eventually obtain permanent residency.
However, the suspension does not automatically cancel an employee’s H-1B visa or terminate their employment.
Does It Mean H-1B Workers Will Lose Their Jobs?
No. The PERM action should not be interpreted as an automatic cancellation of H-1B status.
An employee could continue working in the US under valid H-1B authorization, subject to the normal immigration requirements. The immediate concern is primarily the potential delay to the permanent-residency process.
For workers already progressing through employer-sponsored Green Card procedures, the exact impact may depend on the stage of their individual case and the circumstances surrounding their employer’s suspension.
Why Is the US Taking This Action?
US officials have said the measures are connected to concerns about the use and potential misuse of employment-based immigration programs. The administration has argued that US workers should receive stronger consideration for jobs that could potentially be filled domestically.
The action has therefore intensified the debate surrounding H-1B visas, foreign workers, outsourcing companies and US employment opportunities.
Why Indian IT Professionals Are Watching Closely
Indian nationals represent a significant portion of the US technology workforce using employment-based immigration pathways. At the same time, Indian applicants have historically faced substantial Green Card backlogs because of country-specific employment-based immigration limits.
A prolonged interruption in the PERM process could therefore add another layer of uncertainty for affected Indian professionals.
For example, an employee whose employer is preparing a PERM application could potentially face a delay before progressing to the I-140 stage and eventually permanent residency.
What Happens Next?
The impact will depend heavily on how long the suspension remains in effect and what happens following the government’s review or investigation. Employees should monitor official announcements from the US Department of Labor, USCIS and their employers.
Those directly affected should also consult a qualified US immigration attorney before making decisions about their immigration status.
