October 9, 2026
The Trump administration has suspended Microsoft, Adobe and several major IT services companies from a key employment-based green-card process, expanding its scrutiny of skilled-worker immigration and corporate hiring practices.
The United States has suspended eight major technology companies from the employment-based Permanent Labor Certification, or PERM, program, a step that can be required before an employer sponsors a foreign worker for certain employment-based green cards.
The companies named in reports about the October 8 action are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini. US officials say the move is intended to address alleged abuse of worker-visa and labor-certification rules and protect American workers. The companies have not all publicly responded to the allegations.
The decision matters for technology employers and foreign professionals because PERM can be an important part of the route from temporary employment status to permanent residence. The suspension does not, by itself, mean that every employee's visa has been cancelled or that an existing green card has been revoked.
What to know
- Eight companies: Microsoft, Adobe and six major IT services firms are named in reports.
- What is affected: New and pending PERM labor-certification applications involving the companies.
- What it does not automatically mean: Cancellation of all H-1B visas or existing permanent-resident status.
- What comes next: The duration of the suspensions and any company-specific resolution remain important open questions.
Which companies are affected?
The suspension announced by US officials covers Microsoft and Adobe as well as six companies with substantial technology-services and consulting operations:
- Microsoft — a major software and cloud-computing company.
- Adobe — a software company known for creative and digital-document tools.
- Cognizant — a technology consulting and IT services provider.
- Infosys — an India-headquartered IT services and consulting company.
- Tata Consultancy Services — a global IT services and consulting provider.
- Wipro — an India-headquartered technology services company.
- HCL Technologies — a global technology and IT services provider.
- Capgemini — a technology consulting and digital transformation company.
Reuters reported that Labor Secretary Keith Sonderling said the department would not accept new or process pending permanent labor-certification applications involving the named companies. Vice President JD Vance publicly criticized Microsoft's use of employment-based immigration programs.
Those statements describe the administration's position. Allegations of misuse should not be treated as proof that every company or employee involved committed a violation.
What is the PERM program?
PERM stands for Permanent Labor Certification. In many employment-based green-card cases, an employer must first complete a labor-certification process through the US Department of Labor before proceeding with the next immigration filing steps.
The process generally requires an employer to demonstrate that it has tested the relevant labor market and that hiring a foreign worker for the position would meet the applicable labor-certification requirements, including protections for US workers' wages and working conditions.
PERM is not itself a green card, nor is it the same program as H-1B. The H-1B category permits eligible employers to employ qualifying foreign professionals temporarily. PERM, where required, is part of a separate process that can support an employment-based permanent-residence application.
How the processes differ
Allows eligible workers to undertake qualifying employment in the United States for a temporary period, subject to immigration rules.
Where required, the employer completes the labor-market certification process for a particular permanent job opportunity.
After the relevant certification stage, the employer and worker may need to complete additional immigration filings and eligibility requirements.
Not every green-card category requires PERM. The impact therefore depends on the worker's immigration category, the stage of the case and the circumstances of the employer and employee.
Why the US administration says it acted
The administration says it wants to prevent companies from using foreign-worker programs in ways that disadvantage American workers. Officials have pointed to company layoffs, visa approvals and labor-certification filings as part of their argument for increased scrutiny.
Reuters reported that officials cited figures covering the named companies' applications and approvals since 2009. Such aggregate figures describe the scale of their use of immigration programs; on their own, they do not establish that every filing was improper.
Microsoft said that about 80% of its H-1B applications in the last fiscal year involved extensions or changes of status for existing employees rather than new hires. The company also said it pays H-1B employees the same as other employees performing comparable work.
At the time of Reuters' report, Adobe and several of the other named companies had not immediately responded to requests for comment, while TCS declined to comment. The full scope of any company-specific allegations and the process for resolving the suspensions remain important to follow.
What could this mean for Indian IT professionals?
The decision is particularly relevant to Indian technology professionals because several of the affected companies are major providers of IT services in the US market. Some workers rely on employer sponsorship to pursue permanent residence after working in the country on a temporary visa.
For a worker whose case depends on a PERM application filed by one of the suspended employers, the halt could delay progress while the restriction remains in effect. The exact consequences will vary by case: a worker who has not begun the process is in a different position from someone with a pending labor certification or an approved stage of the process.
The suspension should not be read as a blanket order ending the US employment of all Indian professionals at these companies. Nor does the announcement alone establish that every employee's existing immigration status has changed. Individual cases depend on their current status, filings and the applicable rules.
Workers who may be affected should rely on official notices and qualified US immigration counsel for case-specific guidance rather than assuming that a general news report determines their personal status.
Could US technology companies change their hiring plans?
The immediate effect is likely to depend on how long the suspensions last, whether the companies can resolve the issues raised by the government and what alternatives are available for staffing US projects.
Companies may review their recruitment, documentation and labor-certification practices. Some could put greater emphasis on hiring workers already authorized to work in the United States, including domestic graduates and experienced local candidates. However, the announcement alone does not prove that any particular company has adopted a new hiring plan.
For IT services businesses, workforce planning can affect how they assign people to client projects, move specialists between countries and plan longer-term staffing needs. The scale of any operational change will become clearer as the companies and government provide more information.
How this fits into the wider immigration crackdown
The PERM action comes amid broader US scrutiny of employment-based immigration and visa compliance. Reuters also reported that the administration announced investigations involving nine universities over alleged misuse of exchange-visitor visas and concerns about federally funded research.
These are separate actions involving different rules and institutions. The university investigations should not be confused with the company-specific PERM suspensions, and the existence of an investigation does not establish that a university has violated the law.
The administration's approach has also included changes affecting new H-1B petitions. For background on another immigration-policy dispute, read Newspriint's coverage of the legal challenge to the $100,000 H-1B fee.
What happens next?
Three developments will help clarify the consequences of the PERM suspensions:
- Official details: Further information about the restrictions, their duration and the requirements for lifting them.
- Company responses: Statements from the affected businesses and any steps they announce to address the government's concerns.
- Effects on individual cases: Clarification of how pending applications and workers at different stages of the immigration process will be handled.
Until more details are available, it is too early to quantify the total number of employees who may experience delays or to predict how long the suspensions will remain in place.
Frequently asked questions
Does the PERM suspension cancel H-1B visas?
No. PERM labor certification and H-1B status are separate parts of the immigration system. The suspension does not, by itself, cancel every H-1B visa held by employees of the affected companies.
Does it cancel green cards that workers already have?
The reported action concerns PERM applications. It should not be interpreted as an automatic cancellation of existing green cards. Individual immigration matters depend on their own facts and applicable law.
Which companies are named in the suspension?
Reports name Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
Will every Indian employee at these companies be affected?
No such conclusion follows from the announcement alone. The effect depends on whether a worker's case relies on the affected PERM process and on the details of that case.
Is PERM the same as a green card?
No. PERM is a labor-certification step required for many, but not all, employment-based green-card cases. Additional immigration steps and eligibility requirements generally apply.
Sources and further reading
- Reuters — Trump administration freezes green cards for Microsoft, IT firms, probes universities
- Financial Times — Microsoft banned from sponsoring foreign workers for US residency
- The Indian Express — What the PERM suspension means for Indian IT firms and workers
This article is for general news and information. Immigration outcomes depend on individual circumstances and official decisions; it is not legal advice.
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