The reported move affects a key stage of employer-sponsored permanent residency. It does not, by itself, automatically cancel existing H-1B visas or every Green Card application.
HYDERABAD | October 9, 2026
The United States has reportedly suspended Microsoft, Adobe and several major IT services companies—including Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini—from the PERM labour-certification programme, a key step in many employer-sponsored Green Card cases. Reuters reported the action on October 8, citing statements by US officials.
The move comes amid a broader federal crackdown on alleged misuse of employment-based immigration programmes. However, the exact scope of the company-specific action should be read alongside the relevant official notice or order. This explainer distinguishes the reported suspension from the Department of Labor’s published programme rules.
What is PERM?
PERM stands for Program Electronic Review Management. It is the US Department of Labor’s permanent labour-certification process, generally used by employers sponsoring foreign workers for certain employment-based Green Cards, including many EB-2 and EB-3 cases.
Employers generally must test the US labour market and demonstrate that the proposed employment meets the programme’s requirements, including protections for US workers’ wages and working conditions.
Official US Department of Labor description — exact text:
“A permanent labor certification issued by the Department of Labor allows an employer to hire a foreign worker to work permanently in the United States.”
Source: US Department of Labor, Foreign Labor Application Gateway (FLAG), PERM programme.
What did officials say about the reported suspension?
Reuters reported that Labor Secretary Keith Sonderling said: “We will not accept any new or process any pending permanent labor certification applications involving these companies.” This is a quotation reported by Reuters, not text independently verified here from a published company-specific written order.
Read Reuters’ October 8 report.
Is there a publicly available copy of the exact order?
At the time of publication, we could not independently locate a separate company-specific written order listing all the affected companies in the Department of Labor’s public newsroom or PERM programme pages. We therefore are not presenting an unverified document as the order. The official text reproduced above is the Department of Labor’s published description of the PERM programme—not the reported suspension order itself.
The Department of Labor has previously announced specific PERM enforcement actions. For example, its May 12, 2026 announcement said it had suspended processing of all PERM applications filed by or on behalf of Cloudera for 180 days. That was a separate case and should not be confused with the October 8 action.
Official Department of Labor newsroom and enforcement announcements.
Does this cancel H-1B visas?
No. A PERM suspension does not, by itself, automatically cancel an existing H-1B visa or terminate a person’s lawful immigration status. H-1B is a temporary work classification; PERM is a labour-certification stage used in many employer-sponsored Green Card cases.
The practical impact depends on the wording and scope of the action and the individual’s immigration stage:
- Pending PERM cases: Could be delayed or affected if they fall within the suspension.
- Employees who have not started PERM: Their employers may be unable to initiate or progress applications covered by the restriction.
- Approved PERM or I-140 cases: The effect cannot be inferred from the headline alone; the precise order and the case circumstances matter.
- Existing H-1B status: Not automatically cancelled solely because PERM processing is suspended.
Why are Indian IT professionals watching closely?
Indian professionals make up a substantial part of the US technology workforce, and many rely on employer sponsorship for long-term residency. Delays can complicate decisions about changing employers, career progression, family planning and long-term residence.
Still, the announcement should not be interpreted as a blanket ban on Indian workers or as the automatic rejection of every Green Card application connected with the named companies. The consequences depend on which applications and legal entities are covered and whether exceptions or review mechanisms apply.
What should affected employees do?
- Ask the employer’s immigration team whether the specific application is covered.
- Confirm the current status of the PERM filing and retain copies of relevant notices and receipt details.
- Ask immigration counsel how the action affects any approved I-140, priority date or pending adjustment application.
- Get qualified US immigration legal advice before changing employers or making travel or relocation decisions.
The bottom line
The reported suspension signals increased scrutiny of employer-sponsored immigration and could delay permanent-residency plans for some workers. But a PERM restriction is not the same as cancelling all H-1B visas or banning all Indian professionals from the United States.
The key outstanding question is the exact wording and scope of the company-specific government action. GAWAH will update this explainer if an official written order or notice becomes publicly available.
Primary sources and further reading
- US Department of Labor — PERM programme portal
- US Department of Labor — Permanent Labor Certification
- US Department of Labor — Office of the Secretary and enforcement announcements
- Reuters — October 8, 2026 report on the suspension
Image: Andy Bridge / Unsplash. Illustrative image, not a photograph of the specific suspension order.
