- US suspends PERM processing for major tech firms like Microsoft and Infosys amid investigations
- PERM freeze affects green card pathways but does not cancel existing H-1B visas for workers
- PERM certifies no qualified US workers exist before employer can file green card application
Indian technology professionals working in the US on H-1B visas and waiting for employer-sponsored green cards could face fresh delays after the US government suspended PERM processing for several major technology companies.
Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini are among the companies affected, according to the US Department of Labor. The move comes as the Trump administration steps up scrutiny of the H-1B visa programme and investigates what it alleges is abuse of the system.
For employees, the suspension does not mean their H-1B visas have been cancelled. However, it could disrupt an important route to permanent residency for those whose green card applications depend on employer-sponsored labour certification.
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PERM, or Program Electronic Review Management, is the US Department of Labor's labour certification process for employers seeking to permanently hire foreign workers.
For most employment-based green card applications, an employer must first secure PERM certification before moving on to subsequent stages involving the US Citizenship and Immigration Services and, in some cases, the State Department.
The process is designed to ensure that there are no sufficient US workers who are able, willing, qualified and available for the particular job, and that hiring a foreign worker does not adversely affect the wages and working conditions of similarly employed US workers.
Employers generally begin by obtaining a prevailing wage determination and then completing prescribed recruitment and notice requirements before filing the PERM application.
The Labor Department has said that new and pending labour certification applications from the affected companies will not be processed while investigations into alleged programme abuse continue.
US Vice President JD Vance specifically announced the suspension involving Microsoft. According to AP, Vance said the administration had suspended the PERM programme for Microsoft as part of an ongoing investigation.
The administration's stated objective is to ensure that companies prioritise American workers. The development is particularly important for Indian professionals because they account for a large share of H-1B workers, especially in the technology and IT services sectors.
For an Indian employee already working in the US on an H-1B visa, employer sponsorship is often central to the journey towards a green card. A freeze on PERM applications could therefore mean longer waiting periods and greater uncertainty, depending on the stage of the employee's immigration case.
Importantly, the PERM suspension itself does not terminate an employee's H-1B status. The immediate issue is the potential disruption to the permanent residency process.
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The PERM action follows a series of tougher US immigration measures affecting foreign technology workers.
In September 2025, the Trump administration introduced a $100,000 payment requirement for certain new H-1B petitions involving workers outside the US. The White House has since extended the restriction until September 21, 2027.
The administration has also moved towards a weighted H-1B selection system that favours higher-skilled and higher-paid workers. The White House said H-1B registrations from the largest IT outsourcing companies fell 92% following the 2025 restrictions.
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