The Trump administration has suspended eight major technology and IT outsourcing companies, including Tata Consultancy Services, Infosys and Wipro, from a crucial US programme used to sponsor foreign workers for permanent residency.
The decision, announced Thursday, October 8, also covers Microsoft, Adobe, Cognizant, HCL Technologies and Capgemini.
US Labour Secretary Keith Sonderling said the companies would be barred from the Permanent Labor Certification (PERM) programme amid allegations of fraud and misuse of foreign-worker recruitment arrangements.
The suspension means the US Department of Labor will neither accept new applications nor process pending labour certification requests involving the companies.
The move could disrupt the green card prospects of thousands of foreign technology professionals, particularly Indians, who account for a substantial share of skilled workers employed by US technology and outsourcing companies.
Speaking alongside Vice President JD Vance, Sonderling said the administration was targeting some of the world's largest IT outsourcing businesses.
"We will not accept any new or process any pending permanent labor certification applications involving these companies," he said, according to Reuters.
Vance accused major technology employers of exploiting immigration programmes to replace American workers with cheaper foreign labour.
He singled out Microsoft, alleging that the company had laid off thousands of American employees while continuing to sponsor foreign workers.
"Our message to Microsoft is: You're a great American company, but you've got to hire great American workers," Vance said.
The allegations have not been established through publicly disclosed findings against all eight companies.
PERM is a critical stage in the employment-based green card process.
Under the programme, employers must demonstrate to the US Department of Labor that there are no qualified, willing and available American workers for a particular position and that employing a foreign worker will not adversely affect domestic wages and working conditions.
Once certification is granted, employers can generally proceed with the immigration petition required for permanent residency.
The suspension effectively blocks the affected companies from advancing employment-based green card applications through this route while the restrictions remain in force.
However, it does not automatically revoke existing H-1B visas or require foreign employees already working legally in the US to leave the country.
The distinction is significant.
H-1B visas allow foreign professionals to work temporarily in specialised occupations, while PERM certification is generally part of the longer process of obtaining permanent residency.
Employees whose green card applications depend on their employers securing PERM certification could face prolonged uncertainty.
The administration has not clarified how long the suspensions will remain in effect.
The decision is particularly consequential for India's technology outsourcing industry, whose largest companies have built extensive operations in the United States.
Tata Consultancy Services, Infosys, Wipro and HCL Technologies are among India's biggest IT exporters, serving American clients across banking, healthcare, manufacturing, telecommunications and other industries.
Their US operations rely on a combination of locally recruited employees and foreign professionals, including workers transferred from India.
The suspension could complicate long-term staffing and immigration planning, especially for employees seeking permanent residency through employer sponsorship.
It also adds to uncertainty surrounding the H-1B programme, which the Trump administration has repeatedly criticised over allegations that employers use foreign labour to suppress wages and displace American workers.
The latest announcement forms part of a broader immigration enforcement campaign.
Vance also said nine universities, including Harvard, Yale and Stanford, would face investigations over allegations that international students were being used to undercut American wages.
US Labor Inspector General Anthony D'Esposito said subpoenas had been issued as investigators examined possible visa abuse, improper financial relationships and foreign influence involving federally funded research.
--