On October 8, 2026, the US Department of Labor (DOL) stopped eight big companies from using the PERM programme. PERM is the first step a US company takes to sponsor a foreign worker for a Green Card (permanent residency).
The eight companies are Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, Cognizant, Capgemini, Microsoft and Adobe.
This news matters to thousands of Indian tech workers in the US, and to every Indian student who dreams of a US career. Here is a simple breakdown.
What Did the US Government Say?
US Labor Secretary Keith Sonderling made the announcement with Vice President JD Vance. Sonderling said the department "will not accept any new or process any pending permanent labour certification applications involving these companies."
According to reports, the action is linked to multiple active federal investigations into alleged misuse of US work visa programmes. No charges have been filed against any of the eight companies so far. The allegations are not proven.
Sonderling said that since 2009, these companies together have:
- asked for almost 3 million foreign workers
- received more than 2,30,000 H-1B visa approvals
- received more than 1,00,000 PERM certifications
He claimed this cost American workers “hundreds of thousands of jobs.” This is the US government’s claim. It has not been tested in court.
What Is PERM? (Simple Explanation)
Getting a Green Card through a job usually has three steps:
- PERM (Department of Labor): The company proves it could not find a qualified American worker for the job.
- Form I-140 (USCIS): The company files a petition for the worker.
- Green Card application: The worker applies for permanent residency when their turn comes.
PERM is step one. If PERM stops, the whole Green Card process for that worker stops at the start.
Is H-1B Cancelled? No.
This is the most important point. H-1B visas have not been cancelled.
India's Ministry of External Affairs (MEA) said: "PERM is distinct from the H-1B visa programme," and the suspension "does not, by itself, affect the validity of existing H-1B visas."
Legal experts also say that PERM and I-140 approvals that were already granted are not automatically cancelled.
Who Will Be Affected the Most?
The MEA said “there could be some impact on the permanent-residency/Green Card process of eligible employees.” The people most at risk are:
- Workers with a pending PERM at these companies. Their cases are on hold, with no end date.
- Workers whose PERM was not yet filed. They cannot start now with their current company.
- H-1B workers close to the 6-year limit. An H-1B can usually be extended beyond 6 years only if a PERM or I-140 was filed at least one year earlier. Some workers may now face a deadline problem.
- Families on H-4 visas. H-4 work permits often depend on an approved I-140, so some families may face delays.
Workers who already have an approved I-140 have a separate legal way to extend their H-1B that does not need a new PERM
How Long Will the Suspension Last?
Immigration experts believe the DOL may be using a rule called 20 CFR § 656.31(b). Under this rule, the first hold can last up to 180 days, and it can be extended until the investigation ends. This is the experts' reading, not an official confirmation.
This Started Earlier
A month before, on September 8, 2026, the DOL's Inspector General had already stopped new PERM filings from Cognizant in connection with an alleged visa-fraud investigation. The October 8 action is much bigger.
The "Indentured Servants" Remark and India's Reply
India's MEA replied strongly on October 9. It called such descriptions "unwarranted" and said that "resorting to terminology that carries painful historical and colonial legacy connotations is deeply offensive." It added that "talent mobility adds value to both economies."
What Did the Companies Say?
- TCS said its “PERM applications were in single digits in the last two years” and it does “not expect the suspension of the program to impact our workforce strategy and customer engagements.” TCS plans to hire 15,000 people in the US over the next five years.
- Microsoft said “the vast majority of Microsoft employees in the United States are Americans.”
- Infosys, Wipro, HCLTech, Cognizant, Capgemini and Adobe had not made public statements in the reports we checked.
Will Indian IT Companies Lose Business?
Probably not in the short term. Shrikant Chouhan of Kotak Neo said the move "is not going to impact revenue immediately." He said these companies file only about "2 per cent to 3 per cent of total PERM applications."
In simple words: the companies will likely be fine. The individual workers who wanted to settle in the US face the real uncertainty.
What Should Indian Students Learn From This?
Many Indian students follow this path: Study in the US (F-1) → Work (OPT) → H-1B → Green Card. This news hits the last step.
- A Green Card is not automatic after an H-1B.
- Ask your future employer about their Green Card sponsorship record.
- Know the other routes. The EB-1 and EB-2 NIW categories do not need PERM, but they are hard to qualify for.
- Keep a Plan B. Build skills that work in India and other countries too.
Frequently Asked Questions
Is the H-1B visa banned for Infosys, TCS and Wipro employees?
No. Only the PERM (Green Card) process is suspended. Existing H-1B visas are still valid.
Which companies are suspended from PERM?
Infosys, TCS, Wipro, HCL Technologies, Cognizant, Capgemini, Microsoft and Adobe.
How long will the PERM suspension last?
No end date has been announced yet.
Can an affected worker still get a Green Card?
Possibly, through another employer or through categories like EB-1 or EB-2 NIW that don't need PERM. Affected workers should talk to a qualified US immigration lawyer.
What We Still Don't Know
- How long the suspension will last
- The exact legal rule the DOL is using
- Which agencies are investigating, and why
- Whether more companies will be added
We will update this story when official notices are published.
Students are watching, observing and learning.
Disclaimer: This article is based on official statements and public reports available as of October 9, 2026. It is for awareness only and is not legal or immigration advice.
Sources
- Business Standard / PTI: US suspends 8 IT firms from PERM
- Business Standard: MEA clarifies H-1B visas not affected
- Business Today: India responds to Vance's remark
- Business Standard: TCS statement on PERM suspension
- ANI: Kotak Neo on impact for Indian IT
- i9 Intelligence: Legal analysis of the PERM suspension
- LHSC Immigration: Microsoft, Adobe and others suspended
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