US Suspends Green Card Filings by Major Indian IT Firms

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Key takeaways

The US Department of Labor suspended major IT providers like TCS, Infosys, Wipro, HCL, and Cognizant from filing applications under the Permanent Labor Certification (PERM) programme.
US technology giants Microsoft and Adobe alongside French consultancy firm Capgemini also face this PERM filing suspension.
The restriction applies exclusively to new employment-based Green Card certifications under PERM rather than existing H-1B temporary worker visas.
To sponsor permanent overseas staff, companies must hold a Federal Employer Identification Number (FEIN) and obtain wage clearance from the National Prevailing Wage Center (NPWC).

The US Department of Labor barred prominent IT companies such as Cognizant, Infosys, TCS, Wipro, and HCL from using the Permanent Labor Certification (PERM) programme after allegations of immigration fraud and displacing local workers.

This official decision blocks specific tech companies from submitting new labour certifications under PERM, which serves as an essential first requirement for sponsoring overseas specialists for employment-based permanent residency, commonly called a Green Card.

The authorities barred leading Indian software exporters like Cognizant, Infosys, TCS, Wipro, HCL, and France-based Capgemini from PERM submissions, along with US tech giants Microsoft and Adobe.
US officials highlighted serious issues regarding false filings, underpaying foreign staff, and replacing domestic workers, which has led to strict checks on foreign worker hiring.
Under current guidelines, hiring companies must prove that they pay market wages and search for local applicants before seeking clearance to sponsor non-US staff for permanent residence.
Students should note that PERM leads to permanent Green Cards, while H-1B provides temporary visas for skilled staff. This suspension targets new PERM filings specifically and does not cancel active H-1B work permissions.

The Permanent Labor Certification (PERM) system allows companies in America to sponsor non-citizens for long-term jobs, acting as the mandatory initial step for employment-based Green Cards.

The US Department of Labor (DOL) acts as the main authority handling all stages of this certification programme.
The primary goal is protecting local interests by confirming that no suitable domestic workers want the position, ensuring foreign hiring does not hurt the earnings or working terms of US citizens.

To apply, every company needs an active Federal Employer Identification Number (FEIN) and an actual office address in the country where domestic job seekers can interview.
The opening must offer a genuine, full-time, permanent position, with the company clearly stating the basic skills and everyday tasks needed for the role.
Firms must obtain wage clearance from the National Prevailing Wage Center (NPWC) to confirm that foreign hires receive pay meeting official local labour benchmarks.
Hiring teams must run specific domestic job advertisements and display job notices to verify whether any qualified American professionals are available for the post.