Infosys, Tata, Wipro among Indian IT firms suspended from US green card programme

What exactly was suspended for Infosys, Tata, Wipro and the other named companies?

The US Labor Department suspended eight technology companies from the Permanent Labor Certification Programme. The companies are Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe. This matters because labor certification is normally an essential step toward many employment-based green cards.

The suspension means the department will not accept new applications or process pending ones involving these companies. Infosys, Tata, Wipro and HCL are based in India. The department linked six companies to ongoing criminal investigations and said Microsoft and Adobe faced multiple active federal investigations.

The action does not cancel employees’ existing H-1B visas. It blocks a separate permanent-residency pathway while the stated investigations and broader immigration crackdown continue. Employees may therefore keep temporary work status under existing H-1B visas, but applications relying on their employers’ labor certifications cannot move forward through this programme.

What is the Permanent Labor Certification Programme, and how does it help an employer sponsor a foreign worker for a green card?

The Permanent Labor Certification Programme is a required process for employers sponsoring foreign workers for most employment-based green cards. It matters because it tests whether hiring a foreign worker would displace an available US worker for the particular position.

Under the programme, an employer must establish that no qualified, willing and available US worker can fill the job. If the labor certification is accepted, the employer can move to the next stage of filing a petition for an employment-based green card. The article identifies H-1B holders as one group that can be sponsored.

The programme therefore connects a company’s hiring need with the permanent-residency process. The suspension affecting the named companies stops this certification step for new and pending applications. It does not itself grant a green card, and it does not turn an H-1B visa into permanent residence.

How is a temporary H-1B visa different from a permanent green card, and why does this suspension not cancel existing H-1B visas?

An H-1B visa is temporary permission for a US company to employ a foreign worker in a special occupation. A green card is different: it allows a foreign citizen to live and work permanently in the United States. The two statuses serve different purposes and use separate processes.

For many employment-based green cards, an employer must first complete Permanent Labor Certification. That certification is then followed by a petition. The Labor Department suspended this certification process for the named companies, including applications that were new or already pending.

Because the action concerns labor certification, it does not automatically erase an employee’s existing H-1B visa. The article explicitly says those visas were not cancelled. Employees may therefore retain their temporary work authorization, while their employer-sponsored route toward permanent residence is blocked or delayed under the suspended programme.

How large is the Indian presence in the H-1B system, and how many H-1B approvals and permanent labor certifications did the companies reportedly receive?

Indian nationals have a dominant presence in the H-1B system. The article reports that Indians received 71% of all H-1B visas issued by the United States in financial year 2023-’24. That figure helps explain why changes affecting large technology employers can have major consequences for Indian workers.

US Labor Secretary Keith Sonderling alleged that the named companies had requested almost three million foreign workers. He also said they had received over 230,000 H-1B visa approvals and over 100,000 Permanent Labor Certifications. These figures were presented as part of the administration’s criticism of the programme.

The numbers describe the scale cited by the Labor Department, not a count of every current employee or application. The companies now face a halt on new and pending labor-certification applications. Existing H-1B visas remain unaffected by this specific suspension, according to the article.

What happens to new and pending green-card applications when the Labor Department refuses to accept or process them?

When the Labor Department refuses to accept new applications or process pending ones, the affected employers cannot advance those labor certifications through the department. This matters because the certification is a required step before petitions for most employment-based green cards can be filed.

The suspension applies to applications involving Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe. A new application cannot enter the process, while an existing application is placed on hold rather than being processed. The article does not state how long the suspension will last or describe a final decision on each case.

The immediate effect is a blocked or delayed route to permanent residence for workers sponsored through these companies. Existing H-1B visas remain valid under the action described. The longer-term outcome depends on the investigations and any later Labor Department decisions, which the article does not specify.

Why does US law require employers to show that no qualified, willing and available American worker can fill a job before sponsoring a foreign worker?

The requirement creates a safeguard for the US labor market before an employer sponsors a foreign worker for most employment-based green cards. It asks whether a qualified, willing and available US worker can perform the specific job. The article presents this as the central test in the certification programme.

For example, an employer seeking permanent sponsorship must establish that the job cannot be filled by an available American worker who meets its requirements. The labor certification therefore examines the relationship between the employer’s stated need and the domestic workforce. Only after this step can the employer file most employment-based green-card petitions.

This rule reflects a balance between hiring needs and worker protection. Vice-President JD Vance said the H-1B programme should address jobs impossible to fill with American workers, while alleging that fraud had become widespread. The suspension shows the government applying increased scrutiny to that balance.

How does the US employment-based immigration system balance employers' demand for specialized workers with the goal of protecting domestic workers?

The US system balances employer demand and domestic-worker protection through separate checks. H-1B visas let companies temporarily employ foreign workers in special occupations. For permanent sponsorship, employers generally must complete labor certification and show that no qualified, willing and available US worker can fill the position.

The mechanism is therefore two-part. Employers can seek workers from outside the country for specialized jobs, but permanent sponsorship requires a labor-market showing. Vice-President JD Vance described the intended H-1B purpose as finding people for positions completely impossible to fill with American workers. The Labor Department also alleged that fraud had become a problem.

The current suspension adds another layer of scrutiny. Eight companies cannot submit new or advance pending labor certifications because of stated criminal or federal investigations. Existing H-1B visas remain unaffected. The article does not say what final policy or legal outcomes will follow.

Key Facts:

📌 Eight technology companies were suspended from the Permanent Labor Certification Programme.

📌 The suspension blocks new and pending labor-certification applications.

📌 Existing H-1B visas were not cancelled.

📌 Labor certification precedes petitions for most employment-based green cards.

📌 Employers must test whether US workers can fill a specific job.

📌 The process can support sponsorship of H-1B workers.

📌 H-1B visas temporarily cover specialized employment.