Green Card Pathway Blocked: US Halts PERM Filings for Infosys, Wipro, and Major Tech Firms Over Alleged Abuse

WASHINGTON — The United States Department of Labor has suspended several major technology and IT outsourcing firms, including Infosys, Wipro, Tata Consultancy Services (TCS), HCL, Cognizant, and Capgemini, from the Permanent Labor Certification (PERM) program.
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This sweeping administrative action, which also impacts US-based tech giants like Microsoft and Adobe, immediately halts the processing of new and pending applications, sending shockwaves through the global tech talent ecosystem.
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The PERM program serves as the critical first step for foreign workers seeking employment-based green cards in the United States.
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Under this regulatory framework, employers must obtain certification from the Department of Labor proving that there are no qualified, willing, or available US workers for a specific role before sponsoring a foreign national.
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By suspending these companies, the US government has effectively blocked their primary pathway to secure permanent residency for thousands of foreign employees.
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Labor Secretary Keith Sonderling announced the suspensions, citing ongoing investigations into alleged systemic abuse and fraud within the visa sponsorship processes of the affected firms.
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The move aligns with a broader, intensified regulatory crackdown aimed at ensuring that the PERM system fulfills its original mandate of protecting the domestic labor market.
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For decades, Indian IT services firms have relied heavily on the H-1B to green card pipeline to retain top engineering talent within the United States.
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For the thousands of Indian IT professionals currently working in the US on H-1B visas, the suspension creates immediate and profound uncertainty.
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Many of these workers have spent years navigating the green card backlog, relying entirely on their employers to sponsor them through the complex PERM process.
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With filings halted, their path to permanent residency is indefinitely frozen, raising fears of forced repatriation if their temporary visas expire or if they face layoffs in a volatile tech sector.
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Industry analysts warn that this regulatory chokehold could fundamentally alter the operating model of global IT services.
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Companies may be forced to accelerate their "nearshoring" strategies, relocating talent to hubs in Canada, Mexico, or Eastern Europe to serve US clients without relying on US-based permanent residency sponsorships.
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Furthermore, the inclusion of US-based firms like Microsoft and Adobe indicates that the scrutiny extends beyond traditional outsourcing models to the broader tech industry's reliance on foreign-born engineers.
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As legal teams at the affected corporations prepare to challenge the suspensions, the immediate reality for foreign workers is one of professional limbo.
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The US Department of Labor’s aggressive stance signals a new era of heightened compliance, forcing multinational tech firms to radically rethink their long-term talent retention strategies in the United States.
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