The United States government has suspended several prominent technology firms from the PERM labour certification programme, a move that is expected to delay the Green Card application process for thousands of foreign workers. Companies affected by the suspension include Infosys, Tata Consultancy Services (TCS), Wipro, Cognizant, HCLTech, Capgemini, Microsoft, and Adobe.
Announced by the US Department of Labor, the action prohibits these companies from filing new PERM applications and halts the processing of pending cases. According to US officials, the suspension was initiated following allegations regarding the misuse of foreign worker programmes and broader concerns about the impact on domestic job opportunities. Vice President JD Vance stated that the practice has effectively excluded Americans from the job market, labelling the affected companies as "visa mills."
The suspension creates significant uncertainty for H-1B visa holders who rely on their employers to sponsor them for permanent residency. Workers currently awaiting the filing of a PERM application are unable to establish a priority date, which determines their position in the Green Card queue. This is particularly challenging for Indian professionals, who already face extended wait times due to high demand and country-based numerical limits. Furthermore, the Department of Labor has indicated that it will not process pending applications for the named firms during the suspension period.
While the measure effectively blocks a primary pathway to permanent residency, officials have clarified that it does not cancel existing H-1B visas. Employees currently working under valid H-1B status are permitted to continue their employment as per their current visa approvals. However, the duration of the suspension remains unclear. Under Labor Department regulations, an initial suspension during a fraud investigation can last up to 180 days and may be extended if the investigation remains unresolved.
In addition to the PERM restrictions, the US government has ordered an investigation into the J-1 visa programme for research scholars at nine universities, including Yale, Harvard, Stanford, and Caltech. For H-1B workers nearing the six-year visa limit, the inability to file a PERM application may necessitate exploring alternative options, such as changing employers, though legal experts advise seeking professional guidance for individual immigration cases.
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