US suspends Infosys, Microsoft, Wipro, HCL, Cognizant, Adobe, 2 other IT firms from labour programme: Here’s why

What exactly did the US government suspend for Microsoft, Infosys, Wipro, HCL, Cognizant, Adobe, Tata and Capgemini?

The suspension blocks Microsoft, Infosys, Wipro, HCL Technologies, Cognizant, Adobe, Tata and Capgemini from participating in the US Permanent Labour Certification Programme. The programme is used to support certain employment-based permanent residency applications for foreign workers. The move matters because it can interrupt green-card pathways for employees of these companies.

US Labour Secretary Keith Sonderling said the Department of Labour would stop accepting new applications involving the companies. It would also stop processing their pending applications. Vice President JD Vance accused the companies of making allegedly illegitimate representations when seeking certification. He especially criticised Microsoft, while saying the administration did not want to harm the company.

The suspensions are indefinite. The companies would remain barred until the administration’s concerns are addressed, according to Vance. Sonderling also said several federal investigations were active. The named companies had not immediately responded to requests for comment, and the action adds to wider efforts to reduce reliance on foreign workers.

What is the Permanent Labour Certification Programme, or PERM, and how does it help a company sponsor a foreign worker for permanent residency?

The Permanent Labour Certification Programme, commonly called PERM, allows US employers to seek Department of Labour certification for eligible foreign workers. That certification supports an employment-based permanent residency application. It matters because it is one step companies may use when trying to move a foreign employee from temporary work status toward a green card.

For example, a company could seek PERM certification for a foreign worker who entered the United States through the H-1B programme. The Department of Labour reviews the employer’s application under the programme. If the process can proceed, the certification may help the employer advance the worker’s employment-based permanent residency case. The article does not detail every filing requirement.

The administration says the suspended companies abused this system and made allegedly illegitimate representations. Sonderling therefore ordered that new applications be rejected from processing and pending applications be halted. The indefinite suspension could prevent affected companies from advancing certain green-card cases until the administration’s concerns are addressed.

How large is the foreign-worker hiring connected to these companies, in terms of H-1B approvals and permanent labour certifications?

The scale is substantial. Labour Secretary Keith Sonderling said the named companies had collectively requested nearly three million foreign workers since 2009. He said they had received more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications. These figures formed the administration’s main argument that the companies’ use of foreign labour was significant.

The numbers cover the companies targeted in the suspension, including major outsourcing firms such as Infosys, Tata, Wipro, HCL Technologies and Capgemini, as well as Microsoft and Adobe. H-1B approvals concern a temporary visa pathway, while permanent labour certifications support certain employment-based green-card applications. They therefore represent related but different parts of the immigration system.

Sonderling argued that this scale came at the expense of American employees. He described the certifications and visa approvals as hundreds of thousands of jobs taken from US workers. The companies did not immediately respond to requests for comment, while the administration said active federal investigations were underway.

What happens to pending and future green-card applications when these companies can no longer submit or process PERM applications?

The immediate consequence is a freeze in the PERM stage of affected cases. The Department of Labour said it would stop accepting new permanent labour certification applications involving the named companies. It would also stop processing applications already pending. Since PERM can support an employment-based permanent residency case, some employees’ paths to green cards may be interrupted.

For example, an H-1B worker whose employer had filed a pending PERM application could see that application stop moving forward. An employer planning to begin a new case would be unable to submit it for processing under the suspension. The article describes the likely impact as affecting the companies’ ability to advance certain green-card applications, rather than automatically cancelling every case.

The suspension is indefinite. JD Vance suggested the companies would stay barred until the administration’s concerns were addressed. Multiple federal investigations were also active, according to Sonderling. The article does not provide a timetable, appeal process or final decision on individual workers’ applications.

Why does the US administration say that using foreign workers through this system can harm American workers?

The administration says the system can harm American workers when companies use it to hire foreign workers for jobs that qualified Americans could perform. Vice President JD Vance accused the suspended firms of making allegedly illegitimate representations in their applications. He urged them to stop importing workers for jobs that, in his view, American employees would gladly do.

Sonderling linked the concern to the companies’ scale. He said they had requested nearly three million foreign workers since 2009, received more than 230,000 H-1B approvals and obtained over 100,000 permanent labour certifications. He argued that this represented hundreds of thousands of jobs taken from American workers. These were administration claims, and the companies had not immediately commented.

The response is an indefinite suspension from PERM, alongside active federal investigations. The administration also wants technology companies to train and hire more Americans. The broader dispute reflects a major US debate over foreign workers, especially H-1B visas, and could pressure companies to change recruitment and workforce practices.

What are H-1B visas, and how are they different from PERM certification and employment-based permanent residency?

An H-1B visa is a temporary US work pathway for foreign professionals in specialised occupations. PERM is different: it is a Department of Labour certification programme that an employer may use to support an eligible worker’s employment-based permanent residency application. Permanent residency, often represented by a green card, is a longer-term immigration status rather than a temporary work visa.

The pathways can connect. The article notes that PERM can cover workers who may have entered the United States through H-1B. For instance, an employee might work temporarily under H-1B status, then have the employer seek PERM certification to advance a permanent residency case. The certification is not itself an H-1B visa or a green card; it is part of the permanent-residency process.

The administration’s action targeted PERM applications involving the companies, not simply every H-1B worker. The article also says Trump has moved to make H-1B use more difficult. Together, the measures could increase uncertainty for technology employers and foreign workers pursuing longer-term status.

Why do technology companies recruit workers internationally, and how do immigration rules shape the global technology labor market?

Technology companies recruit internationally because the industry relies heavily on workers from other countries. The article does not identify specific skills shortages or hiring reasons, but it shows that major firms use both H-1B visas and PERM-related green-card processes. Immigration rules therefore shape whether companies can bring in foreign talent temporarily and help eligible employees pursue permanent residency.

The mechanisms are different. H-1B provides a route connected to temporary employment, while PERM allows an employer to seek labour certification for an employment-based permanent residency case. The named companies received more than 230,000 H-1B approvals and over 100,000 permanent labour certifications, according to Sonderling. Those figures show how immigration policy affects company staffing and worker mobility.

The administration is pressing technology companies to train and hire more Americans. It has also suspended the named firms from PERM and made H-1B use more difficult, according to the article. These actions could push companies to change recruitment practices while intensifying debate over foreign talent and American jobs.

Key Facts:

📌 Eight technology companies were suspended from the US PERM programme.

📌 The Labour Department stopped accepting new applications involving them.

📌 Pending applications involving the companies will no longer be processed.

📌 PERM lets employers seek certification for eligible foreign workers.

📌 The certification supports employment-based permanent residency applications.

📌 Some PERM applicants may have entered through H-1B visas.

📌 The companies requested nearly three million foreign workers since 2009.