The US Department of Labour has suspended eight companies including Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, from the labour certification programme known as PERM, citing active federal investigations. The move puts Indian technology workers, who dominate the H-1B pool, at the centre of the fallout.
What Is PERM?
PERM, or Permanent Labour Certification, is the stage at which an employer must show the Department of Labour that no qualified and willing US workers are available for a role.
It is generally a prerequisite for sponsoring a foreign employee for an employment-based green card. Rules also require employers to run a time-consuming and costly "test recruitment" before filing.
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What Has The US Done?
Labour Secretary Keith Sonderling said the department will neither accept new PERM applications from these firms nor process pending ones. He said the companies have received over 230,000 H-1B approvals and over 100,000 PERM certifications since 2009.
Vice President JD Vance singled out Microsoft, saying it laid off American workers while bringing in foreign staff on H-1B visas.
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Is The H-1B Visa Cancelled?
No. A PERM suspension is not the same as cancelling H-1B visas, and an affected employee does not automatically lose the visa or the right to work in the US.
The immediate hit is to the employer's ability to start or continue the green-card process. Workers further along in the process may be affected differently, depending on the stage of their case.
Why Does It Matter For Indians?
Indian nationals make up roughly 70% of H-1B holders. The backlog also works against them.
The queue for Indian applicants runs well beyond the six-year H-1B limit, so many Indian employees need a certified PERM to stay on past that period.
Those who have not yet begun the process may have to reconsider their options, including a move to another employer.
PERM suspension directly impacts green-card sponsorship, not H-1B.
Direct earnings impact could therefore remain relatively limited.
ADR weakness could mean broader concerns around US immigration policy.
What Next?
The allegations relate to ongoing investigations and are not findings of guilt against every company named.
Microsoft has said it will provide the administration with additional information and that most of its H-1B filings involve existing employees.
Vance has indicated the restrictions would stay until officials are satisfied that the companies are putting American workers first.
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