Introduction
The United States has introduced significant restrictions on employment-based Green Card sponsorship, creating uncertainty for thousands of foreign technology professionals, particularly those from India. In a major development on October 8, 2026, the US government suspended eight leading technology and IT services companies from participating in the Permanent Labor Certification (PERM) program.
The decision affects companies including TCS, Infosys, Wipro, Microsoft, and Adobe, raising concerns about employment-based immigration, H-1B visa holders, and long-term career opportunities in the United States.
According to Reuters’ coverage of the suspension, the restrictions are part of increased federal scrutiny of foreign-worker sponsorship practices.
But what does this mean for Indian IT professionals already working in the US or planning to pursue permanent residency?
What Are the New US Green Card Restrictions in 2026?
The US Department of Labor (DOL) has suspended new and pending PERM applications associated with eight major technology companies.
The PERM program is an important stage in obtaining an employment-based Green Card. It requires employers to demonstrate that hiring a foreign professional for a particular position will not adversely affect qualified US workers.
The suspension means affected employers cannot proceed normally with this labor certification process while the restrictions remain in place.
The announcement comes amid investigations into alleged misuse of immigration programs, including concerns about wage practices and the displacement of American workers. However, detailed company-specific findings have not been publicly released.
Source: Akashvani News – US Green Card Suspension
Which IT Companies Are Affected by the PERM Suspension?
The restrictions cover eight prominent technology and IT services companies with significant operations in the United States.
| Company | Industry |
|---|---|
| Tata Consultancy Services (TCS) | IT Services and Consulting |
| Infosys | IT Consulting and Digital Services |
| Wipro | IT Services and Technology |
| HCL Technologies | IT Services and Engineering |
| Cognizant | IT Consulting and Business Services |
| Capgemini | Technology Consulting |
| Microsoft | Software and Cloud Technology |
| Adobe | Software and Digital Solutions |
These organizations employ substantial international technology workforces, making the suspension particularly relevant to Indian professionals pursuing US permanent residency.
Source: Channel Dive – US Action Against IT Companies
How Does the PERM Program Work for US Green Cards?
The PERM labor certification process is generally the first major employer-sponsored step for many EB-2 and EB-3 Green Card applicants.
The process typically involves three stages:
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Labor Certification: The employer completes recruitment requirements and seeks certification from the Department of Labor.
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Form I-140 Petition: Following certification, the employer files an immigrant petition with US Citizenship and Immigration Services (USCIS).
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Green Card Application: Once an immigrant visa is available, eligible applicants may pursue adjustment of status or consular processing.
A PERM suspension can delay this process before an employee reaches the next stage.
For official requirements, visit the US Department of Labor’s Permanent Labor Certification page
How Will the Green Card Restrictions Affect Indian IT Professionals?
Indian technology professionals may face several challenges depending on their immigration status and Green Card application stage.
Longer Green Card Waiting Periods: Employees with pending PERM applications may experience additional delays, potentially extending an already lengthy immigration process.
Uncertainty Around Sponsorship: Professionals whose employers have not initiated Green Card sponsorship could face difficulties starting the process during the suspension.
Career Planning Challenges: Employees considering job changes may need to reassess their immigration timelines and sponsorship opportunities.
H-1B Extension Concerns: Workers approaching the standard six-year H-1B limit should review their eligibility for extensions, particularly if their permanent residency applications are delayed.
These challenges are especially significant for Indian applicants facing employment-based Green Card backlogs.
Source: Business Standard – Impact on Indian H-1B Workers
Does the PERM Suspension Affect Existing H-1B Visas?
One important distinction is that the PERM suspension does not automatically cancel existing H-1B visas, valid H-1B status, or approved Green Cards.
The restrictions primarily concern employer-sponsored permanent labor certification rather than temporary work authorization.
However, professionals relying on PERM certification for future H-1B extensions or permanent residency should carefully evaluate their circumstances.
Source: Akashvani News – Immigration Restrictions Explained
What Should Indian IT Workers Do Next?
With immigration policies undergoing changes, affected professionals should take proactive steps to protect their long-term career plans.
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Review your application status: Confirm whether your PERM application is pending, approved, or not yet filed.
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Consult your employer: Discuss sponsorship timelines and possible alternatives with your HR or immigration team.
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Check H-1B validity: Monitor visa expiration dates and extension eligibility.
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Explore alternative pathways: Discuss potential options such as EB-1 or EB-2 National Interest Waiver with a qualified immigration attorney, where eligible.
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Follow official announcements: Track updates from the Department of Labor and USCIS instead of relying on speculation.
What Does This Mean for the Future of US IT Employment?
The 2026 PERM restrictions highlight growing scrutiny of foreign-worker recruitment and employment-based immigration.
Technology companies may increasingly review their workforce strategies, domestic recruitment practices, and immigration compliance procedures.
For Indian IT professionals, the development reinforces the importance of long-term immigration planning, maintaining valid work authorization, and understanding alternative career opportunities.
The duration of the restrictions and the eventual outcome of ongoing investigations remain uncertain.
Conclusion
The US Green Card restrictions in 2026 represent an important development for Indian IT professionals seeking permanent residency through employer sponsorship.
Although the suspension creates obstacles for new and pending PERM applications at eight major technology companies, it does not automatically invalidate existing H-1B visas or Green Cards.
Staying informed, communicating with employers, and seeking professional immigration guidance can help affected workers make better decisions while the situation develops.
Related Sources
1. https://www.axios.com/2026/10/08/h1b-vs-perm-vance-tech-worker-ban
2. https://www.axios.com/2026/10/09/trump-microsoft-immigration-tech
5. https://news.bloomberglaw.com/ip-law/us-suspends-visa-program-for-tech-firms-including-microsoft-2
6. https://www.ft.com/content/5cfecbba-69ed-42d0-98fd-3ae019144692
8. https://www.wired.com/story/trump-administration-crackdown-microsoft-adobe-immigration/
