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The Trump administration has suspended the processing of permanent labour certification applications for eight major technology companies, including Indian IT giants Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro and HCL, citing concerns over the protection of American jobs and wages.
Microsoft, Adobe and Capgemini are also on the list, according to reports.
US Labour Secretary Keith Sonderling announced the decision on Thursday, October 8, in the presence of Vice President JD Vance and the head of an anti-fraud task force.
Under the suspension, the companies cannot submit new applications under the Permanent Labour Certification (PERM) programme, while existing applications will also be put on hold. The programme allows employers to sponsor foreign workers for employment-based green cards.
The administration alleges that some companies have misused visa programmes to replace American workers with foreign employees. Vance has specifically accused Microsoft of laying off US workers while continuing to seek visas and permanent labour certifications for foreign employees.
The move comes as the Trump administration tightens restrictions on foreign workers, including those applying for H-1B visas, widely used in the technology sector.
India’s IT industry body Nasscom said Indian technology companies have reduced their dependence on H-1B visas and expanded local hiring in the United States. It also stressed that temporary skilled-worker mobility and permanent immigration are separate issues.
The suspension affects a key step towards permanent residency and does not amount to a blanket cancellation of all work visas.
Sources: The Indian Express