U.S. Suspends Major Tech Firms from Green Card Program

The U.S. Department of Labor has recently suspended eight prominent technology companies from the Permanent Labor Certification (PERM) program. This action halts new filings and puts pending cases on hold for companies including Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Capgemini, Microsoft, and Adobe. The suspension, announced on October 8, 2026, by Labor Secretary Keith Sonderling, stems from multiple active federal investigations into the companies’ hiring practices.

PERM Program Explained

The PERM program, officially known as Program Electronic Review Management, is a critical step for employers seeking to sponsor foreign workers for permanent residency in the United States. Before an employer can sponsor a foreign national for a green card, they must typically obtain a labor certification from the Department of Labor. This certification confirms that there are no qualified U.S. workers available for the position the foreign national is seeking. The PERM process involves demonstrating that the employer has attempted to recruit U.S. workers and that hiring a foreign worker will not negatively impact wages and working conditions for similarly employed U.S. workers.

Impact of the Suspension on Companies and Workers

The suspension means that the affected companies can no longer file new PERM applications for their employees. Furthermore, any PERM applications that were already pending with the Department of Labor will not be processed during the suspension period. This creates a significant roadblock for foreign workers at these companies who are in the process of obtaining a green card through employment-based sponsorship. The companies involved are described as major global IT outsourcing firms, and collectively, they have requested nearly three million foreign workers and received over 100,000 permanent labor certifications since 2009.

What the Suspension Does Not Mean

It is important to understand what this suspension does not entail. The action by the Department of Labor does not automatically cancel existing H-1B visas or an employee’s current immigration status. It also does not mean that all employees of the named companies have been denied green cards. Cases that have already received PERM certification or have had their I-140 petitions approved by U.S. Citizenship and Immigration Services (USCIS) are generally not affected by this new suspension. The immediate consequence is for those employees whose green card sponsorship relies on the PERM process moving forward.

Previous Actions and Broader Investigations

This is not the first time some of these companies have faced scrutiny. Cognizant, for example, was previously suspended from the PERM program in September 2026 due to an alleged visa fraud investigation. The latest announcement broadens the scope to include other large IT service firms and also names Microsoft and Adobe. The Department of Labor has cited multiple active federal investigations as the basis for this widespread action, indicating a wider effort to ensure compliance with labor laws and immigration regulations. The stated reason behind the action is the department’s view that these companies have collectively taken hundreds of thousands of jobs that could have gone to American workers.

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