The Department of Labor (DOL) has instituted a suspension of the PERM application process affecting eight major technology and IT services firms in the United States.
Notable companies included in this moratorium are Microsoft, Adobe, Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Cognizant, and Capgemini, all of which have faced rejection of H-1B visa petitions under this new stipulation.
Labor Secretary Keith Sonderling, accompanied by Vice President JD Vance, announced on October 8, 2026, that this H-1B visa prohibition will result in a cessation of both new and outstanding Green Card labor petitions.
While this suspension does not alter the non-immigrant status of affected workers, it has significant ramifications for the Indian firms grappling with U.S. H-1B visa restrictions and their overall foreign labor strategies.
Implications of the U.S. PERM Green Card Suspension for Technology Firms
This directive from the DOL specifically targets the PERM program, a critical initial procedure that employers must undertake to demonstrate the absence of qualified local candidates prior to sponsoring foreign nationals for permanent residency (EB-2 and EB-3 visas).
Details of the Recent H-1B Update by the U.S. DOL
- The halt takes immediate effect. The DOL will neither accept new PERM applications nor process existing filings for the aforementioned eight companies.
- Non-immigrant visas remain unaffected. Employees who currently hold H-1B visas at these entities retain their legal status and ability to work. The suspension solely pertains to Green Card labor sponsorship.
- In light of this administrative measure, prominent IT service providers and technology behemoths such as Microsoft and Adobe are advised to refrain from launching any Green Card initiatives until they achieve federal compliance.
The Eight Technology Companies Impacted by the H-1B Visa Directive
| Company Name | Industry Sector | Status of New and Pending PERM Filings |
| Microsoft | Technology and Software | Suspended |
| Adobe | Software and Cloud | Suspended |
| Tata Consultancy Services (TCS) | IT Services and Consulting | Suspended |
| Infosys | IT Services and Consulting | Suspended |
| Wipro | IT Services and Consulting | Suspended |
| HCL Technologies | IT Services and Consulting | Suspended |
| Cognizant | IT Services and Consulting | Suspended |
| Capgemini | IT Services and Consulting | Suspended |
Reasons Behind the U.S. Government’s Focus on PERM Sponsorship Amid H-1B Visa Developments
The announcement from U.S. officials highlighted concerns regarding recruitment practices and the potential displacement of domestic employees.
Labor Secretary Keith Sonderling indicated that the eight companies under scrutiny have sought over two million foreign workers since 2009, securing more than 23,000 H-1B approvals and approximately 100,000 permanent labor certifications.
Vice President Vance underscored the necessity for corporations to prioritize domestic hiring, asserting, “We want you to continue to grow and to employ a lot of people, but we want you to employ American workers.”
Prospective Outcomes for Foreign Workers and Corporations
Current discussions regarding a possible U.S. visa ban evoke apprehension within the industry. Notably, major IT firms have increasingly pivoted towards local hiring strategies in recent years.
NASSCOM has remarked that while skilled mobility and immigration processes serve distinct functions, it is vital to acknowledge that companies are systematically reducing their reliance on visas.
For those impacted professionals, maintaining the ongoing H-1B extension procedure remains an option, although advancement to Green Card applications is contingent upon the resolution of the prevailing legislative environment.
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