The United States has suspended eight major technology companies, including four prominent Indian information technology firms, from participating in the Permanent Labour Certification (PERM) programme, creating uncertainty for foreign professionals seeking permanent residency.
Announced on October 8, 2026, the decision affects Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Cognizant, Capgemini, Microsoft and Adobe. The US Department of Labor said it would stop accepting new PERM applications involving the companies and suspend processing of pending applications, citing concerns about alleged misuse of employment-based immigration programmes.
The move is part of President Donald Trump's administration's broader efforts to tighten oversight of foreign-worker programmes and prioritise employment opportunities for American workers.
US officials have accused technology companies of exploiting foreign-worker programmes at the expense of American employees. Nevertheless, the restrictions could complicate long-term workforce planning, employee retention and recruitment. Workers whose permanent residency applications are delayed may face greater uncertainty over their future in the United States, particularly as their circumstances become more dependent on maintaining valid temporary immigration status.
The suspension also highlights the growing regulatory risks facing global technology companies. While Indian IT firms have diversified their staffing models, continued restrictions could increase compliance costs and make the United States a more complicated destination for some skilled professionals.