Major technology firms, including Microsoft and Adobe, have been barred from the Permanent Labor Certification (PERM) program by the US government. This program serves as a vital pathway for skilled foreign employees seeking employment-based green cards. The measure was unveiled on October 8 by Vice President JD Vance and Labor Secretary Keith Sonderling, who pointed to suspected fraud and emphasized the administration’s goal of encouraging companies to prioritize American workers.
This suspension halts both new and currently pending permanent labor certification filings for the specified businesses. Such a policy shift stands to heavily impact foreign technology professionals striving for permanent legal status in the United States, especially employees of large IT services companies.
Which IT Companies are Affected?
Alongside Microsoft and Adobe, the Department of Labor identified Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini as targets of the suspension. According to Sonderling, the agency will neither accept fresh submissions nor review pending PERM paperwork connected to these organizations.
Because these firms rank among the top employers of foreign tech talent in the US, the policy change is expected to resonate strongly with Indian IT professionals who frequently rely on these employment-based immigration channels to establish long-term careers domestically.
What is the PERM Program?
Managed by the US Department of Labor, the PERM (Permanent Labor Certification) system requires employers to demonstrate that there are no qualified, willing, and available American workers capable of taking a job before sponsoring someone for an employment-based green card.
While this mechanism operates independently from the H-1B visa initiative—meaning H-1B visas are not halted by this announcement—blocking PERM applications nonetheless introduces a substantial barrier for H-1B holders pursuing permanent residency.
Also Read: H-1B Visa Fee Extended: What Does it Mean?
US Steps up Scrutiny of Foreign Worker Programs
During the announcement, Vance alleged that Microsoft had exploited the immigration system, asserting that the administration looks to major domestic corporations to put US employees first. Sonderling further highlighted the volume of foreign worker applications and approvals linked to the impacted enterprises historically.
Parallel to these measures, the administration has launched probes into nine prominent US universities, such as Harvard, Yale, and Stanford, regarding concerns tied to international students and compensation. Labor Department representatives confirmed that subpoenas have already been dispatched as part of this wider-ranging fraud inquiry.
Ultimately, these new developments introduce fresh hurdles for technology enterprises reliant on international expertise, as well as for foreign staff attempting to navigate the notoriously prolonged US permanent residency procedure.
