US visa chaos: Infosys, Wipro among IT firms suspended from PERM scheme; what it means

Which technology companies have been suspended from the PERM programme, and what immigration pathway does this affect?

Microsoft, Cognizant, Infosys, Tata, Wipro, Capgemini and HCL were identified in the crackdown on access to the PERM programme. The programme is used when employers seek permanent labour certification for foreign workers.

This matters mainly for workers moving from temporary employment toward permanent residence. For H-1B workers, PERM can be an important stage before the employer files an immigrant petition, generally Form I-140, with US Citizenship and Immigration Services.

Suspension does not erase a worker’s existing H-1B status, but it can make new permanent sponsorship harder for the company. The move follows allegations that employers abused visa programmes or used foreign workers in ways that undercut American employees. The article also reports investigations involving nine universities and wider uncertainty for foreign workers and international students.

What is the PERM programme, and why is it important for some H-1B workers seeking US green cards?

The Permanent Labour Certification programme, or PERM, lets a US employer seek approval to permanently employ a foreign worker. Its purpose is to protect American workers before a permanent job is offered to someone from abroad.

An employer generally must show that no able, willing, qualified and available US worker can fill the position. It must also show that the foreign worker’s hiring will not harm the wages or working conditions of similarly employed Americans. After approval, the employer can generally file Form I-140 with US Citizenship and Immigration Services.

For an H-1B worker, PERM can therefore connect temporary employment with an employment-based green card process. Losing access can make permanent sponsorship more difficult. The article says authorities are concerned about manipulated recruitment, incomplete documentation and wage practices that weaken these protections.

How many American layoffs, H-1B visas and green cards did Vice President Vance associate with Microsoft?

Vice President JD Vance associated Microsoft with 6,000 layoffs of American workers. He also cited 6,300 H-1B visas and nearly 3,000 green cards benefiting the company.

Vance presented the figures as evidence of a sharp contrast between US job losses and the company’s use of foreign-worker immigration pathways. At a White House news conference, he said Microsoft had laid off thousands of Americans while benefiting from thousands of H-1B visas and green cards.

He argued that the company had used the system more than any other US company and accused employers of undercutting American workers’ wages. The article presents these as Vance’s allegations and figures. Microsoft’s suspension from PERM was announced as part of the administration’s broader crackdown on the US immigration system.

What happens to a company's foreign-worker sponsorship efforts when it loses access to PERM?

Losing access to PERM makes a company’s permanent foreign-worker sponsorship efforts more difficult. PERM is the Labor Department certification employers generally need before continuing an employment-based green card case.

The key mechanism is sequential. The employer first must show that qualified, willing and available US workers are insufficient and that the foreign worker will not harm comparable American workers’ wages or conditions. If certification is approved, the employer can generally proceed with Form I-140 through US Citizenship and Immigration Services.

A suspension interrupts or prevents that step for affected sponsorship efforts. The article does not say that every existing visa or green card is automatically cancelled. It says the suspension can make it harder for a company to sponsor eligible foreign workers for permanent residence, adding uncertainty for foreign employees.

How is an H-1B temporary work visa different from a green card obtained through the PERM process?

The article describes H-1B visas as a pathway used by foreign workers employed in the United States, while PERM concerns permanent employment. A green card represents the permanent-residence goal in the employment-based process described here.

The difference is in purpose and sequence. An H-1B worker may be employed under a temporary visa. If the employer wants to support that worker’s permanent residence, it generally uses PERM to prove that qualified US workers are unavailable and that wages and working conditions will not be harmed. After approval, the employer can generally file Form I-140.

Thus, H-1B status and a PERM-based green card case are related but separate. The article says PERM can be an important step for H-1B workers. Suspending PERM access makes the permanent sponsorship route harder, even though the article does not describe every effect on H-1B status.

What evidence must an employer provide to show that hiring a foreign worker will not displace qualified US workers or reduce their wages?

The employer generally must demonstrate that there are not enough able, willing, qualified and available US workers for the job. It must also show that hiring the foreign worker will not adversely affect the wages and working conditions of similarly employed Americans.

That requires a credible labour-market test. Recruitment should give qualified US workers a genuine opportunity to apply, rather than discouraging or excluding them. The employer must also meet prevailing-wage requirements, which are intended to prevent foreign-worker hiring from depressing comparable American wages. Supporting documentation helps establish that these steps actually occurred.

The Department of Labor’s inspector general identified concerns involving fraudulent applications, inadequate supporting documentation and weak post-certification enforcement. Those vulnerabilities matter because PERM certification depends on trustworthy evidence. If records are incomplete or recruitment is misleading, the government may receive a false picture of worker availability and wage protection.

Why can fraudulent recruitment, weak documentation or manipulation of prevailing wages undermine a labour-certification system?

PERM is meant to test whether a permanent job truly lacks qualified, willing and available US workers. Fraudulent recruitment can distort that test by making it appear that no American is suitable, even when qualified applicants were discouraged from applying or excluded from consideration.

Weak documentation creates a similar problem. Without adequate supporting records, officials may be unable to verify whether recruitment occurred properly or whether the employer met the programme’s requirements. Manipulating prevailing wages can further undermine the system by making foreign-worker hiring appear compliant while reducing compensation below the level intended to protect comparable American workers.

Together, these practices weaken the evidence behind certification. They can allow employers to bypass safeguards designed to protect US wages and working conditions. The article says the Labor Department inspector general identified vulnerabilities involving fraudulent applications, inadequate documentation and weak post-certification enforcement.

Key Facts:

📌 Microsoft and six other technology companies were identified in the PERM suspension.

📌 PERM supports employer sponsorship for employment-based green cards.

📌 Nine universities are also under investigation over alleged visa-programme misuse.

📌 PERM is a Department of Labour process for permanent foreign-worker employment.

📌 Employers must generally test whether qualified US workers are available.

📌 Approved PERM cases can lead to a Form I-140 immigrant petition.

📌 Vance associated Microsoft with 6,000 American layoffs.