Washington/New Delhi, October 8 (TNA) The US Department of Labour has suspended some of the world's largest IT outsourcing firms from the permanent labour certification (PERM) programme. The move accuses the companies of abusing the system for foreign workers seeking permanent residency. The suspended firms include Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, along with Microsoft and Adobe.
Labour Secretary Keith Sonderling said the government would reject new and pending permanent labour certification applications involving the companies. The administration cited alleged fraud and an effort to encourage the hiring of American workers.
Under PERM, the Labour Department must certify that no qualified, willing or available US worker exists for a specific job before most employment-based green card petitions can be filed. The order is not a ban on H-1B visas, which allow workers to enter the US temporarily, but losing access to PERM creates a significant hurdle for retaining long-term talent.
Sonderling alleged that the companies had made extensive use of foreign-worker programmes over the years. Vice President JD Vance singled out Microsoft over its layoffs and foreign-worker hiring while announcing its suspension. The Department of Labour has also launched investigations into nine prominent universities, including Harvard, Yale and Stanford, over their use of J-1 visa practices.
Follows September action against Cognizant
The latest action follows an earlier step against Cognizant's PERM filings in September, when US authorities said they were investigating alleged fraud and possible harm to American workers.
Anthony D'Esposito, the department's inspector general, announced that suspension on X, and the department's Office of Inspector General is investigating alleged fraud and human trafficking involving the H-1B and PERM systems. That probe followed whistleblower complaints about Cognizant's use of immigration programmes.
Anthony D'Esposito, the department's inspector general, announced that suspension on X, and the department's Office of Inspector General is investigating alleged fraud and human trafficking involving the H-1B and PERM systems. That probe followed whistleblower complaints about Cognizant's use of immigration programmes.
Impact on Indian workers
The move puts pressure on Infosys, TCS, Wipro and HCL, major employers of Indian professionals in the US, and could affect employees trying to move from temporary work status to permanent residency. Indian IT companies have been reducing their dependence on H-1B visas in recent years.