US suspends eight IT firms from Green Card programme over alleged visa misuse

Washington: The US Department of Labor has suspended eight major technology and IT services companies from the Permanent Labour Certification (PERM) programme, a key step in obtaining employment-based Green Cards for foreign workers, amid allegations of misuse of immigration programmes and displacement of American workers.

The companies affected are Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech, Capgemini, Microsoft and Adobe. US Labor Secretary Keith Sonderling announced the action alongside Vice-President JD Vance and officials associated with the US Anti-Fraud Task Force.

Sonderling said the department would neither accept new applications nor process pending PERM applications involving the companies. He alleged that the firms had collectively sought nearly three million foreign workers since 2009, receiving more than 2.3 lakh H-1B visa approvals and over one lakh permanent labour certifications.

US officials have argued that the extensive use of foreign-worker programmes has affected employment opportunities for American workers. These claims form part of the administration’s broader scrutiny of skilled-worker immigration.

PERM suspension may delay Green Cards for Indian professionals

PERM, or Program Electronic Review Management, is a labour-certification process generally required before an employer can sponsor an eligible foreign worker for an employment-based Green Card. Employers must demonstrate that hiring a foreign worker will not adversely affect the wages and job opportunities of US workers.

The suspension does not amount to a direct cancellation of H-1B visas. However, it could disrupt the Green Card process for employees whose employers are affected, potentially delaying applications for permanent residency.

The development is significant for Indian professionals, as several of the companies named are major employers of Indian technology workers in the US.