Why the US Has Suspended Cognizant, TCS, Wipro and HCLTech From Green Card Filings

US Suspends Green Card Filings by Major IT Firms: Why Indian Workers Could Be Affected

The US government has suspended several major technology and IT outsourcing companies from the Permanent Labour Certification (PERM) programme, a key step in the employer-sponsored Green Card process. The Trump administration has cited alleged immigration fraud, wage undercutting and claims that foreign workers were hired at the expense of American employees.

US Secretary of Labor Keith Sonderling announced the action against Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech and Capgemini. Microsoft and Adobe have also been included in the suspension, widening the administration’s crackdown on employment-based immigration.

The move could affect Indian professionals seeking permanent residency through these companies, particularly those who have not yet begun the labour-certification process. However, the allegations against the companies should not be treated as established findings of wrongdoing.

The latest action comes amid increased scrutiny of the H-1B visa and PERM systems. Technology and outsourcing companies have faced criticism from US officials over their reliance on foreign talent and practices that the administration claims can disadvantage American workers.

Why is the US targeting major IT companies?

The Trump administration says the suspensions are intended to prevent alleged abuse of immigration programmes and ensure that employers give qualified American workers priority when filling jobs.

Sonderling said the Labour Department would take steps to end what he described as fraud contributing to companies’ reliance on foreign labour. He argued that jobs should go to American workers before employers recruit from overseas.

The labour secretary also cited the scale of immigration activity involving the affected companies. According to his statement, the firms had sought permanent residency for nearly three million foreign workers since 2009, received more than 230,000 H-1B visa approvals and obtained over 100,000 permanent labour certifications.

Sonderling characterised these figures as evidence of the number of employment opportunities allegedly diverted from Americans. However, the figures alone do not establish that the companies violated immigration law or that every foreign worker displaced an American employee.

The suspension reflects the administration’s broader effort to tighten immigration rules and increase scrutiny of employers that rely heavily on international recruitment.

What is the PERM programme?

PERM, short for Program Electronic Review Management, is a labour-certification process generally required before an employer can sponsor a foreign worker for certain employment-based Green Cards.

Unlike an H-1B visa application, which concerns temporary employment in a specialised occupation, PERM forms part of the route to permanent residency.

Before submitting a PERM application, an employer generally must obtain a prevailing wage determination and complete prescribed recruitment procedures. The process is intended to establish that hiring a foreign worker permanently will not adversely affect the wages, working conditions or employment opportunities of similarly employed US workers.

Once the US Department of Labor certifies the application, the employer can proceed with the next stage of the employment-based Green Card process, subject to the applicable immigration requirements.

The labour-certification filing date also generally establishes the worker’s priority date, which determines their place in the queue for an immigrant visa, subject to the relevant rules and visa availability.

This is particularly important for Indian applicants, who face substantial waiting periods because demand for employment-based Green Cards from India exceeds the annual supply.

How could the suspension affect Indian IT employees?

The immediate impact will depend on the stage each employee has reached in the Green Card process and the duration of the suspension.

1. Delays for employees awaiting PERM filing

Employees whose employers have not yet filed their PERM applications could face delays in starting the labour-certification process. While the suspension remains in force, affected employers may be unable to submit new applications or proceed with pending cases covered by the order.

Without a PERM filing, eligible workers may be unable to establish a priority date through that process, potentially delaying their progress towards permanent residency.

2. India’s existing Green Card backlog

Indian professionals already face lengthy waits for employment-based immigrant visas. The US immigration system limits the number of employment-based Green Cards available annually and restricts the share that nationals of any one country can receive.

The September 2026 Visa Bulletin cited in the original report listed the employment-based second preference (EB-2) category for India as unavailable for final action, while the EB-3 final-action date stood at January 1, 2014.

These dates illustrate the scale of the backlog, although visa availability can change from month to month.

3. Possible complications for some H-1B holders

The suspension could also create difficulties for certain employees approaching the standard six-year limit on H-1B status.

US rules permit qualifying H-1B workers to obtain extensions beyond six years in certain circumstances, including where the employment-based Green Card process has reached specified milestones. An inability to begin the PERM process in time could therefore affect workers who depend on those provisions.

However, the consequences will vary according to each employee’s circumstances, including whether a labour-certification application or immigrant petition has already been filed and whether other extension provisions apply.

4. Existing visas and approved cases are not automatically cancelled

The PERM suspension does not, by itself, revoke existing H-1B status or automatically cancel an already-issued Green Card. Employees with approved immigration petitions who are waiting for an immigrant visa number may also be in a different position from workers whose PERM process has not started.

Their options will depend on the applicable rules and the precise scope of the government’s suspension.

H-1B visa versus PERM: What is the difference?

The H-1B visa allows US employers to hire eligible foreign professionals temporarily in speciality occupations. PERM, meanwhile, is generally a labour-certification step in the process of sponsoring a foreign employee for permanent residency.

An H-1B holder does not automatically receive a Green Card. Employer sponsorship, labour certification where required, an immigrant petition and visa availability may all form part of the process.

For Indian professionals working in the US, the distinction matters because restrictions on PERM filings can delay a long-term residency application even if the employee’s current work authorisation remains valid.

What happens next?

The impact on employees will depend on how long the suspensions remain in place, the status of any pending applications and the outcome of the investigations. Workers affected by the move may need to consult their employers’ immigration teams or qualified US immigration lawyers to understand their individual options.

For now, the central concern is the potential delay to employer-sponsored permanent residency for Indian professionals. The suspension marks a significant escalation in scrutiny of major IT employers, but it does not mean that every employee of the named companies has lost their visa, job or eligibility for a Green Card.