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The United States has taken a major step affecting employment-based immigration by suspending Green Card labour certification processing for eight major technology and IT services companies. The decision, announced on October 8, 2026, has raised concerns among Indian professionals working in the US, particularly those relying on employer sponsorship to obtain permanent residency.
The companies named in the announcement are Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech, Capgemini, Microsoft and Adobe. The US administration says the action follows concerns about alleged misuse of employment-based immigration programmes and the possible displacement of American workers.
However, an important question remains unanswered: how many Indian employees will actually be affected, and does the suspension mean that workers submitted fake documents? The available information does not establish that every affected employee committed fraud, nor does it provide a confirmed count of Indian workers whose Green Card applications will be delayed.
Why Has the US Suspended These Eight Companies?
The suspension is part of the Trump administration’s wider effort to tighten employment-based immigration rules and prioritise American workers in the domestic job market.
US officials have alleged that some companies relied on foreign workers in ways that disadvantaged American employees. Their concerns include alleged wage suppression, questionable recruitment practices and possible misuse of immigration programmes.
Under the US employment-based immigration system, employers generally need to demonstrate that hiring a foreign worker permanently will not adversely affect the wages and working conditions of similarly employed American workers. The PERM process is designed to help establish that the required labour-market conditions have been met.
Vice President JD Vance has publicly criticised companies for relying on foreign-worker programmes while laying off American employees. Labour Secretary Keith Sonderling announced the suspension affecting the eight companies.
Nevertheless, allegations made by government officials should not be confused with final findings of wrongdoing. The public announcement has not established that every company committed the same violation or that every foreign employee involved submitted false documents.
Which Companies Are Affected?
The action covers eight major technology and IT services businesses with significant operations in the United States.
1. Cognizant
Cognizant is a major IT services and consulting company with operations in India and the US. The company has already faced scrutiny related to its employment-based immigration filings. The latest action places it among the companies whose PERM applications are subject to the announced restrictions.
2. Infosys
Infosys is one of India’s largest IT services companies, employing professionals in software development, consulting, cloud computing and enterprise technology. The suspension could affect eligible employees who depend on company-sponsored PERM applications to progress towards permanent residency.
3. Tata Consultancy Services (TCS)
TCS operates across multiple industries, providing IT consulting, software services and digital transformation solutions. The company has a substantial US presence. Its inclusion may create uncertainty for employees whose Green Card sponsorship has not yet reached the labour certification stage.
4. Wipro
Wipro provides technology consulting, engineering and business services to international clients. Employees relying on the company’s employer-sponsored immigration pathway could face delays while the restrictions remain in effect.
5. HCLTech
HCLTech operates in software, engineering, infrastructure and digital services. The suspension may affect employees awaiting new PERM filings through the company.
6. Capgemini
Capgemini is a global technology consulting and IT services company. Although headquartered in France, it is included in the reported suspension alongside several Indian IT services firms.
7. Microsoft
Microsoft is one of the world’s largest technology companies. The US administration has specifically criticised its employment practices in the context of American layoffs and foreign-worker hiring. The allegations remain distinct from a final determination of individual employee misconduct.
8. Adobe
Adobe, known for software products used in design, document management and digital marketing, is also included in the announced restrictions. Government officials have cited ongoing investigations in explaining the action.
The suspension concerns the companies’ participation in the PERM process. It does not automatically cancel all their employees’ work visas or existing Green Cards.
How Many Indian Employees Will Be Affected?
This is one of the biggest questions surrounding the announcement, but a confirmed figure has not been published.
According to statements reported by news organisations, the eight companies collectively requested permanent residency for nearly three million foreign workers since 2009. Officials also cited more than 230,000 H-1B visa approvals and more than 100,000 permanent labour certifications.
These figures cover activity over many years. They do not represent the number of people whose applications are currently pending, the number of Indian nationals affected or the number of employees accused of fraud.
The distinction matters because the companies employ workers from different countries, and not everyone working for them is seeking permanent residency through PERM.
The actual impact will depend on how many employees have applications pending, how many were preparing to start the process and how the restrictions are applied to individual cases.
Indian professionals are a particularly important group in this discussion because Indian nationals make up a substantial share of the US skilled-worker immigration population. However, the number of Indian employees affected by this specific suspension remains unconfirmed.
Were Indian Employees Using Fake Documents?
The suspension has created confusion because reports refer to alleged fraud and misuse of immigration programmes. However, this does not mean the US government has announced that all affected Indian workers submitted fake documents.
There is a significant difference between investigating an employer’s recruitment practices and proving that an employee personally committed immigration fraud.
For example, authorities may investigate whether a company followed the required recruitment process before sponsoring a foreign worker, whether it properly considered qualified American applicants, or whether its immigration filings complied with the law.
A separate issue would arise if an individual knowingly submitted forged qualifications, false employment records or misleading information in an immigration application. Such conduct can have serious legal consequences, but it must be assessed using the facts of the individual case.
As of October 9, 2026, the publicly reported announcement does not provide a verified list of Indian employees whose documents were found to be fake. It also does not establish that every company or employee involved committed fraud.
Therefore, headlines about immigration fraud should not be interpreted as proof that Indian IT professionals collectively used false documents to obtain US visas or Green Cards.
What Is PERM, and Why Is It Important?
PERM stands for Program Electronic Review Management. It is the US Department of Labor’s labour certification process, generally used by employers sponsoring foreign workers for certain employment-based Green Cards.
The process normally requires an employer to obtain a prevailing wage determination and conduct prescribed recruitment activities. The employer must establish that there are not sufficient qualified, willing and available US workers for the relevant position and that employing the foreign worker will not adversely affect the wages and working conditions of similarly employed American workers.
After the labour certification is approved, the employer can generally proceed to the next stage of the employment-based immigration process, subject to the applicable requirements.
For many Indian professionals, PERM is an important step towards permanent residency because employer-sponsored Green Cards often involve lengthy waiting periods.
When a company cannot submit new PERM applications or process pending applications during a suspension, employees who have not completed this stage may face uncertainty about when their cases can progress.
The effect on each employee depends on the stage of their immigration case and the rules applicable to their circumstances.
PERM Suspension vs H-1B Visa: What Is the Difference?
PERM and H-1B serve different purposes, and understanding the difference is essential.
An H-1B visa allows eligible foreign professionals to work temporarily in the United States in qualifying specialty occupations. PERM, by contrast, is a labour certification process used in many employer-sponsored Green Card cases.
The announced suspension concerns the PERM process for the named companies. It does not, by itself, cancel an employee’s existing H-1B status.
However, there can be indirect consequences for some workers. Certain H-1B holders may qualify for extensions beyond the usual six-year limit under specific immigration rules connected to their employment-based Green Card cases. Delays in beginning or advancing the process may therefore create additional concerns for workers approaching that limit.
Employees whose Green Card petitions have already reached later stages may be in a different position from those who have not yet started PERM. Their options depend on their individual circumstances and the applicable rules.
Workers should not assume that they must leave the US simply because their employer has been included in the suspension.
What Happens to Employees With Pending Green Card Applications?
The impact depends on where an employee’s case stands.
Employees whose employers have not yet filed PERM applications may be unable to begin the normal employer-sponsored process while the suspension applies.
Those with pending PERM applications could face interruptions if their cases fall within the restriction. The government has stated that it will not accept new or process pending labour certification applications involving the named companies.
Employees who have already completed PERM and progressed to later stages may have different circumstances. A PERM suspension does not automatically revoke an approved Green Card petition or an existing Green Card.
Similarly, an employee who already holds a valid H-1B visa is not automatically stripped of that status by this announcement.
Because immigration cases are highly individual, employees should obtain case-specific guidance from their company’s immigration team or a qualified US immigration attorney before making decisions about employment, travel or their future in the country.
Could This Decision Affect India’s IT Industry?
The suspension could create challenges for Indian IT companies that use employer-sponsored immigration to attract and retain skilled professionals in the United States.
For employees, the availability of a predictable pathway to permanent residency can influence career decisions, family planning and long-term financial commitments. If that pathway becomes uncertain, some professionals may reconsider their plans to work in the US.
For employers, restrictions on Green Card sponsorship may make it more difficult to recruit international talent or retain experienced workers who want a long-term future in the country.
Indian IT companies may also need to review their immigration processes, recruitment documentation and compliance procedures in response to increased scrutiny.
At the same time, the overall impact should not be exaggerated. The announcement does not prohibit all Indian citizens from working in the United States, and it does not suspend every employer-sponsored immigration pathway across the entire technology industry.
The extent of the disruption will depend on the duration of the restrictions, the findings of the investigations and any subsequent government decisions.
What Should Indian IT Professionals Do Now?
Employees working for the affected companies should first confirm whether their employer-sponsored Green Card case is actually covered by the suspension.
They should ask their employer’s immigration team about the current status of their PERM application, whether any filing deadlines are affected and whether alternative options may be available under the applicable immigration rules.
Employees approaching the usual H-1B six-year limit should seek advice early, because their eligibility for extensions may depend on specific filing dates and other legal requirements.
Workers should also keep copies of their immigration documents, employment records and relevant correspondence. They should avoid relying on social media posts that claim all H-1B visas have been cancelled or that every affected worker has been accused of fraud.
Most importantly, employees should not resign, abandon their immigration plans or make international travel decisions based solely on headlines. They should obtain advice that reflects their individual status and circumstances.
FAQs
Has the US banned Green Cards for all Indians?
No. The reported suspension applies to PERM processing involving eight named companies. It is not a blanket ban on Indian nationals obtaining Green Cards through every available route.
How many Indians have been affected?
The exact number has not been confirmed. Historical figures covering millions of foreign-worker sponsorship requests cannot be used as the number of Indian employees currently affected.
Did the affected Indian employees submit fake documents?
The public announcement does not establish that all affected employees submitted fake documents. Allegations about employer practices and investigations into immigration programmes do not prove individual wrongdoing.
Are H-1B visas cancelled for Infosys, TCS, Wipro and HCLTech employees?
No. The PERM suspension does not automatically cancel existing H-1B visas. Individual visa status remains subject to the relevant immigration rules and circumstances.
Can affected employees still obtain a Green Card?
Their options depend on their individual cases, the stage of the process and the restrictions in force. Employees should consult their employer’s immigration team or a qualified US immigration attorney.
Is the suspension permanent?
The publicly reported announcement does not establish a definite end date. Employees and employers should monitor official updates for further instructions and changes to the restrictions.
Conclusion
The US suspension of PERM processing for eight major technology companies is a significant development for Indian IT professionals pursuing employer-sponsored permanent residency. The government has cited alleged immigration-program abuse and concerns about American jobs, while the action has created uncertainty for foreign workers whose Green Card applications depend on the affected employers.
However, three facts must remain clear: the exact number of Indian workers affected has not been confirmed, the announcement does not prove that every affected employee used fake documents, and existing H-1B visas and Green Cards are not automatically cancelled by the PERM suspension.
The next important developments will be the findings of the investigations, clarification of the restrictions and any decisions that determine when affected companies can resume processing applications.
