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US suspends green card pathway for Microsoft and six IT outsourcing firms

US suspends green card pathway for Microsoft and six IT outsourcing firms

Rule Changes

Labor Department blocks PERM filings for eight companies, citing alleged fraud

Yesterday: US suspends PERM for eight tech companies

Overview

Updated 56 minutes ago

The US government suspended eight technology companies from the program that lets employers sponsor foreign workers for permanent residency. Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini can no longer file new applications or get pending ones processed.

The suspension targets the Permanent Labor Certification (PERM) program, the required first step toward an employment-based green card. For many foreign tech workers already in the US — most of them Indian nationals facing years of backlog — this is the main route from temporary H-1B status to permanent residency.

Why it matters

Tens of thousands of skilled foreign workers, most of them Indian nationals, face losing their main path to permanent US residency.

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Key Indicators

8
Companies suspended from PERM
Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL Technologies, and Capgemini.
1 million
Indian nationals in employment-based green card backlog
Roughly 79% of the 1.25 million total backlog, per Al Jazeera reporting.
79%
Share of green card backlog held by Indian nationals
Indians dominate the backlog because of the 7% per-country cap.
140,000
Employment-based green cards issued per year
The annual pool is divided by a strict per-country cap of 7%.

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People Involved

Organizations Involved

Timeline

2005 October 2026

4 events Latest: Yesterday
Tap a bar to jump to that date
  1. US suspends PERM for eight tech companies

    Latest Policy Announcement

    Labor Secretary Keith Sonderling announces suspension of Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL, and Capgemini from PERM.

  2. India green card backlog deepens

    Data

    September Visa Bulletin shows India EB-2 category unavailable, EB-3 final action at January 1, 2014.

  3. PERM program takes effect

    Policy

    Permanent Labor Certification replaces the paper-based Alien Employment Certification system.

Scenarios

1

PERM suspensions become permanent bans

Possible Resolves by Q2 2027

Discussed by: Immigration attorneys and analysts cited in Reuters and Bloomberg Law coverage

Federal investigations conclude the eight companies systematically misused PERM to replace American workers with cheaper foreign labor. The Labor Department converts the suspension into a permanent bar and extends it to other firms. Foreign workers at these companies lose the employer-sponsored green card route entirely, and their priority dates lapse or freeze.

2

Companies win legal challenge, suspension lifted

Unlikely Resolves by End of 2027

Discussed by: Corporate immigration lawyers and trade press

One or more suspended companies files suit arguing the Labor Department exceeded its authority by suspending firms without a formal finding of fraud. A federal court rules the suspension unlawful or narrows its scope, allowing PERM filings to resume. This mirrors prior challenges to executive immigration restrictions.

3

Suspension lifted after audits and compliance fixes

Possible Resolves by Q1 2027

Discussed by: Reuters analysis and industry observers

The suspended companies cooperate with Labor Department audits, correct identified hiring practices, and the suspension is lifted with conditions attached. Filings resume for pending cases while new ones face stricter oversight. Affected workers see delays of months rather than a permanent loss of the green card route.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

June 2020

COVID-era H-1B suspension (2020)

In June 2020, the Trump administration suspended new H-1B visas for workers abroad, citing the pandemic economy and claiming foreign workers undercut American wages. The order affected tens of thousands of visa holders and applicants.

Then

The suspension blocked new H-1B entries until it expired in March 2021.

Now

It faced legal challenges and became a reference point for executive restrictions on skilled foreign labor.

Why this matters now

Like the 2020 action, the PERM suspension justifies restricting skilled foreign labor by alleging harm to American workers.

October 2013

Infosys visa settlement (2013)

Infosys paid $34 million to settle federal allegations that it brought workers to the US on B-1 business visas to perform jobs that required H-1B work visas.

Then

Infosys admitted no wrongdoing but changed its visa practices.

Now

The case became a standing example of claims that outsourcing firms misuse US visa programs.

Why this matters now

Several companies suspended in 2026, including Infosys and Tata, are the same Indian outsourcing firms that have faced visa misuse accusations for years.

Sources

(10)