On 8 October 2026 the US government announced that a group of large technology and IT-services employers, including Tata Consultancy Services (TCS), Infosys and Wipro, are suspended from the Permanent Labor Certification programme, known as PERM. PERM is the first step of most employer-sponsored green cards. Headlines have called this a "green card suspension" for Indian IT firms, which is accurate in spirit but easy to over-read.
This post sticks to what has been reported by dated news sources as of 9 October 2026. The story is a day old, and we could not find the official Labor Department text, so details may change. Treat this as an explainer, not legal advice.
What was announced
Labor Secretary Keith Sonderling announced the action on 8 October 2026, with Vice President JD Vance also criticising the employers involved. Under the suspension, the named companies cannot file new PERM applications, and the Department of Labor will not issue decisions on their pending ones, while investigations into alleged fraud and compliance violations continue.
The officials' stated reason is that these employers used H-1B and PERM filings heavily while laying off American workers. Outlook India reports that Sonderling cited more than 230,000 H-1B approvals and more than 100,000 PERM certifications for the named companies since 2009. These are allegations by the US government. The same report notes they do not by themselves establish wrongdoing, and we have not seen any court finding.
Which companies are named
Reports agree on TCS, Infosys and Wipro. Most also list HCLTech, Cognizant and Capgemini, plus Microsoft and Adobe, which Outlook India says were suspended because of separate federal investigations, for eight companies in total. Early coverage differs on the exact list (one outlet named only four), so check the Department of Labor's own announcement for the definitive names before relying on any single report.
It is a suspension of specific employers, not of Indian nationals or of all IT companies. Employees of companies not on the list are not affected by this action.
What PERM is, and why it matters
PERM is the labour-certification step for many employment-based green cards. The employer must show that it ran the required recruitment and could not find a qualified, willing US worker, and that hiring the foreign worker will not depress wages for similar US workers. Once the Department of Labor certifies the case, the employer can file the Form I-140 immigrant petition with USCIS, and the employee later applies for the green card itself.
The PERM filing date generally sets the worker's priority date, their place in the queue. That is why a freeze at this stage matters: a worker whose employer cannot file, or whose case is stuck, may lose time in a queue that is already measured in years for Indian-born applicants because of per-country limits.
What it does not do
Based on current reporting, the suspension does not cancel anyone's existing H-1B status, and it does not affect a green card that has already been issued. Employees on valid H-1B visas can keep working under the normal rules. A processing halt on a pending case is also not a denial.
It is also separate from other recent US immigration pauses people confuse it with. On 25 August 2026 the State Department paused green card interviews at US embassies and consulates worldwide to train officers on expanded public-charge screening. That affects people getting immigrant visas abroad, not H-1B workers adjusting status inside the US. The Labor Department's PERM suspension is a different action by a different agency.
Who is most exposed
Workers whose employer has not yet filed PERM are the most exposed, since new filings are blocked outright. Those with a PERM case pending at the Department of Labor face delay. People who already hold an approved I-140 are in a different position, and the effect on them depends on their individual case; this has not been clarified.
H-1B workers nearing the six-year limit deserve particular attention. H-1B extensions beyond six years are generally tied to a PERM or I-140 filed at least 365 days earlier, or to an approved I-140 when the per-country quota leaves no visa available. A suspension could complicate those extensions, but reporting says workers near the limit will not automatically have to leave the US. This is exactly the question to put to an immigration attorney.
What we do not know yet
Several important points are unanswered in the coverage we reviewed: how long the suspension will last and what would lift it; how pending cases at different stages will be handled when processing resumes; whether new requirements will apply; the outcome of the Microsoft and Adobe investigations; and whether the companies will challenge the action. Envoy Global, an immigration services firm, has also said the authorities have not clarified whether previously approved labour certifications are affected.
We also did not find an official statement from TCS, Infosys or Wipro in the reports we read. One headline attributes a comment to TCS about its hiring plans, but the article body did not confirm it, so we are not repeating it.
What affected employees can do now
Confirm your own status and dates: your H-1B validity, how many of your six years you have used, and whether your employer has started PERM or filed an I-140. Ask your employer's immigration team directly what the suspension means for your case, and keep copies of your approval notices, pay slips and filings. Do not assume you must leave, and do not act on social-media rumours; speak to a qualified immigration attorney before any decision about travel, job changes or relocation.
Employees of companies not named in the list should still watch for follow-up actions. The Labor Department's and USCIS's official announcement pages are the places to check for updates, and we will update this post as confirmed details emerge.