PERM vs H-1B visa: What Trump Admin's suspension of Microsoft, TCS and other IT firms means for green card seekers

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

The US government suspended these eight companies from the Permanent Labour Certification, or PERM, programme. They cannot submit new PERM applications, and the Department of Labor stopped processing their pending applications. PERM is commonly used when an employer wants to sponsor a foreign worker for an employment-based green card.

The companies named are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. The administration said the companies may have used the system to replace American workers with lower-paid foreign employees. The Department of Labor also cited multiple ongoing federal investigations.

The suspension directly targets the companies' PERM activity. It does not automatically cancel their employees' existing H-1B visas. Its immediate effect is to block or pause a major step toward permanent residency for workers whose employers depend on PERM sponsorship, while investigations and government scrutiny continue.

What is PERM, and why is it often required for employer-sponsored green-card applications?

PERM is a labour-certification process administered by the US Department of Labor. It lets an eligible employer sponsor a foreign worker for an employment-based green card. The employer must show that enough qualified and available US workers are not available for the job.

The employer, not the foreign worker, starts the process. The employer must also demonstrate that hiring the foreign worker will not adversely affect the wages and working conditions of similarly employed American workers. If certification is approved, the employer can generally move to the relevant immigrant petition and later support the worker's permanent-residency application.

PERM matters because it is an important step for many EB-2 and EB-3 applicants. It is not universal. Some extraordinary-ability applicants and some people eligible for an EB-2 National Interest Waiver may qualify without it, so the suspension does not close every employment-based route.

How many companies were affected, and how broad was the suspension's immediate reach?

The suspension affected eight named technology and IT services companies. They were Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. The action was company-specific, rather than a stated suspension of the entire PERM programme.

Its immediate reach had two parts. The affected companies could not submit new PERM applications, and the government stopped processing applications that were already pending. That matters because PERM is often the employer's first major step toward sponsoring a foreign worker for an employment-based green card.

The article does not give a number for workers or applications caught by the suspension. It also does not say that every employer or every immigration category was affected. Existing H-1B visas were not cancelled by the action, and some green-card routes may not require PERM.

What could the suspension mean for foreign workers whose employers had planned to sponsor them for green cards?

Foreign workers whose employers planned to sponsor them through PERM could lose access to an immediate step in the green-card process. Their employers cannot file new PERM applications, and pending applications are not being processed. That can interrupt plans for employment-based permanent residency.

For example, an H-1B worker at one of the eight companies might rely on the employer to complete PERM before filing the next immigration petition. The worker's temporary job authorization and the employer's permanent-residency sponsorship are separate mechanisms. A PERM suspension therefore affects the green-card pathway, not automatically the worker's current visa.

The article does not specify how long the suspension will last or how many workers are affected. Some applicants may have routes that do not require PERM, including certain extraordinary-ability and National Interest Waiver cases. The investigations and broader crackdown could determine what happens next.

Does the suspension cancel existing H-1B visas, and how is an H-1B different from PERM?

An H-1B visa lets an employer temporarily employ a foreign professional in a specialised occupation. PERM is different: it is a Department of Labor labour certification used by employers seeking to sponsor certain workers for permanent residency. One authorises temporary employment; the other supports a possible green-card process.

H-1B status is generally available for an initial period of up to three years and can typically be extended to six years, subject to rules and exceptions. An H-1B worker may later pursue an employment-based green card through employer sponsorship, often involving PERM. That is how the two mechanisms can appear in one worker's immigration journey.

The suspension does not, by itself, cancel existing H-1B visas. It blocks new PERM applications from the eight companies and pauses their pending applications. The action may therefore disrupt permanent-residency plans while leaving temporary H-1B employment unaffected by this specific decision.

Are there employment-based green-card routes that do not require PERM, such as extraordinary-ability or National Interest Waiver cases?

PERM is important, but it is not required for every employment-based green-card route. The article identifies certain extraordinary-ability cases and some EB-2 National Interest Waiver cases as possible exemptions. These routes can therefore remain available even when an employer's PERM filing is suspended.

The distinction matters because many EB-2 and EB-3 cases generally use PERM. In those cases, the employer must show that qualified and available US workers are not sufficient for the position and that the foreign hire will not harm comparable American workers' wages or conditions. Alternative categories follow different eligibility rules.

The suspension therefore does not eliminate every path to permanent residency. It does, however, directly affect workers whose cases depend on employer-filed PERM applications at the eight named companies. The article does not say how many workers qualify for exemptions or whether a particular applicant meets an alternative category's requirements.

Why does US immigration law separate temporary work authorization from permanent residency, and how does the labor-market test protect or prioritize US workers?

The article presents temporary work and permanent residency as separate immigration mechanisms. H-1B status permits a foreign professional to work temporarily for an employer. PERM helps an employer establish the basis for a possible employment-based green-card application. A worker may use both, but one does not automatically provide the other.

PERM includes a labour-market test. The employer must show that there are not enough qualified and available US workers for the position. It must also show that hiring the foreign worker will not adversely affect the wages and working conditions of similarly employed Americans. These requirements are intended to put US worker availability and workplace standards at the centre of sponsorship.

The administration alleged that some companies manipulated the process to replace American workers with lower-paid foreign employees. The suspension follows investigations and wider scrutiny of skilled foreign labour. It also shows that temporary H-1B employment and permanent green-card sponsorship remain legally distinct.

Key Facts:

📌 Eight technology and IT services companies were named.

📌 New PERM applications were barred.

📌 Pending PERM applications stopped processing.

📌 PERM is administered by the US Department of Labor.

📌 Employers must test whether qualified US workers are available.

📌 PERM supports many EB-2 and EB-3 green-card applications.

📌 The suspension named eight companies.