Labor Department Freeze Halts PERM Applications for Indian IT Firms

A recent pause by the Department of Labor has stopped new and pending PERM applications for eight major technology companies. This action could delay the employer-sponsored green card plans for some employees. While existing H-1B status and jobs are not affected, the PERM application freeze marks a significant development for Indian IT professionals. The suspension, which reportedly began around October 8, 2026, has created uncertainty for many.

Companies Affected by the PERM Application Pause

The Department of Labor’s action specifically names eight technology firms: Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCLTech, and Capgemini. For these companies, the PERM process, which is typically the first step in obtaining an employer-sponsored green card, has been halted. This pause is linked to allegations made against these companies by the administration.

Understanding the PERM Process and Its Current Status

PERM, or Program Electronic Review Management, is a labor certification process. It is a critical step for U.S. employers who wish to sponsor foreign workers for permanent residency. The employer must demonstrate that there are no qualified U.S. workers available for the position. The current freeze means that new applications cannot be filed, and any pending applications are on hold. This situation does not impact an individual’s current H-1B visa status or their employment.

Proposed H-1B Fee Remains Blocked by Court Orders

Separately, a proposed fee of $100,000 for certain new H-1B petitions has not been implemented. Court orders are currently preventing its collection. This proposed payment is distinct from the PERM application freeze. The Presidential Proclamation 10973, signed in September 2025, initially affected new petitions for workers outside the U.S. However, extensions and changes of status within the country were generally excluded. A court ruling in June 2026 vacated the guidance that would have enforced this payment, and further legal challenges could alter its status. A separate proposal for a $103,265 fee for cap-subject H-1B petitions was published in August 2026, but it is not a final rule and therefore not currently owed.

Potential Industry Shifts and Company Responses

Some analysts suggest that the PERM freeze might lead to a shift in how companies manage their projects, potentially moving more work to offshore or nearshore locations rather than increasing local hiring in the U.S. However, no specific company has committed to moving a defined volume of work due to this pause. For instance, TCS reported a significant decrease in its PERM filings even before the freeze, suggesting varying levels of reliance on this process among firms. Wipro has stated that over 80% of its U.S. workforce is locally hired. Research indicates that a reduction in H-1B visa availability can lead to increased employment in foreign affiliates, pointing to a potential redistribution of work rather than a complete halt.

Impact on Professionals and Families

The estimated number of Indian technology professionals and their families potentially affected by these delays is between 5,000 and 6,000. It is important to remember that this figure represents individuals facing possible delays in their green card process, not necessarily job losses or project relocations. A paused PERM application does not equate to a canceled job or visa.

Guidance for Workers and Employers

Given the current situation, both workers and employers should take proactive steps. Workers should consult with their employer’s immigration counsel to understand the specific stage of their PERM case and review their H-1B visa expiration and extension timelines. If considering a job change, it is advisable to discuss transfer procedures before moving to a new employer. Employers are encouraged to evaluate various staffing strategies, including local U.S. hiring and offshore delivery models. Staying informed about updates from the USCIS and the Department of Labor regarding any changes to the PERM application process or proposed fees is also essential.

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