The United States has suspended major technology companies, including Cognizant, Tata Consultancy Services (TCS), Wipro and HCL Technologies, from a key programme used to sponsor foreign employees for Green Cards, escalating President Donald Trump’s crackdown on skilled-worker immigration.The US Department of Labour announced on October 8 that the restrictions would also cover Infosys, Capgemini, Microsoft and Adobe.Labour Secretary Keith Sonderling said the government would stop accepting new applications and processing pending cases under the Permanent Labour Certification Programme, commonly known as PERM.The administration has alleged that some companies misused employment-based immigration programmes to hire foreign workers at the expense of American employees and suppress wages. These are government allegations; the announcement does not establish that every affected company has committed wrongdoing.“I am hereby suspending from the Permanent Labor Certification Program some of the largest IT outsourcing firms in the world — Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini,” Sonderling said.Vice-President JD Vance defended the action, saying the administration wanted companies to prioritise domestic employment. “Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” he said.What is PERM and why does it matter?PERM is a crucial step in the employment-based Green Card process. Before sponsoring an eligible foreign employee for permanent residency, an employer generally must demonstrate that hiring the person will not adversely affect the wages, working conditions or job opportunities of US workers.The process is particularly important for Indian technology professionals who enter the US on H-1B temporary work visas and later seek permanent residency through their employers.By suspending the named companies from PERM, the US government has blocked a key route for their employees to begin or advance employer-sponsored Green Card cases.How will Indian IT workers be affected?The immediate impact will be delays and uncertainty for employees whose applications depend on the affected companies. Workers awaiting the start of the PERM process may be unable to establish a priority date, which determines their place in the Green Card queue.The consequences could be especially serious for Indian nationals because employment-based Green Cards face country-specific limits and long backlogs.The suspension does not automatically cancel existing H-1B visas. However, employees approaching the six-year H-1B limit could face additional complications if they cannot meet the conditions required for extensions.The move marks a widening of Washington’s scrutiny of foreign-worker programmes and raises fresh questions about the future of US employment-based immigration for Indian technology professionals.with Reuters inputs

