US Government Suspends Indian Firms Tata, Infosys, Wipro, HCL From Sponsoring Most Foreign Workers For Green Cards
The US Department of Labour has suspended some of the world’s largest IT outsourcing firms, including Infosys, TCS, Wipro and HCL, from the Permanent Labour Certification Program (PERM), accusing the companies of abusing the system for foreign workers seeking permanent residency. PERM is the official approval from the US Department of Labour that enables an employer to hire foreign workers for a permanent Green Card.
The move puts pressure on IT firms such as Infosys, TCS, Wipro and HCL, which are major employers of Indian professionals in the US, and could affect employees seeking to move from temporary work status to permanent residency.
H-1B visas not cancelled
The action does not cancel H-1B visas or stop these companies from employing H-1B workers. Instead, the suspension blocks the companies from filing new PERM applications and puts pending applications on hold for as long as the suspension remains in effect. The Indian IT firms could also face higher legal, compliance and administrative costs.
Microsoft and Adobe also suspended
US Labour Secretary Keith Sonderling announced the action against Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. He also suspended Microsoft and Adobe from the programme, citing multiple active federal investigations.
“There has been no company in the United States, unfortunately, that has abused this system more than Microsoft,” Sonderling said.
Vance alleges ‘fraud’ in H-1B programme
US Vice President JD Vance said Microsoft laid off 6,000 American workers in 2025 after certifying that it could not find qualified American employees. He said the company was nonetheless approved for more than 6,000 H-1B visas and filed 3,682 PERM applications, nearly 1,000 of which were for the same positions from which American workers had been laid off.
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Vance said the H-1B visa programme was meant to allow companies to bring in “the best of the best” from outside the US for positions that could not be filled by American workers, but alleged that it had become “rife with fraud.”
Nine universities to be investigated
The Labour Department’s action also extends to nine universities, including Harvard, Yale and Stanford. Sonderling said they would be investigated over allegations that they brought in international students to undercut American wages.
Labor Inspector General Anthony D’Esposito said subpoenas had already been served. Microsoft did not immediately respond to a request for comment.