US suspends TCS, Infosys, Wipro, HCLTech, Cognizant and three other firms from PERM green card programme

New Delhi: The US Labour Department on Thursday suspended eight major technology companies, including Indian software services exporters Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, and Cognizant from the so-called permanent labour certification programme (PERM).

This effectively bars these firms from filing new applications or processing pending applications under the employment-based green card programme-after they have sponsored foreign workers on work visas such as H-1B. Capgemini, Microsoft and Adobe have also been suspended from the programme.

Also read: US bars Microsoft from sponsoring green cards for H-1B workers over alleged abuse


US labour secretary Keith Sonderling announced the action alongside Vice President JD Vance, accusing the companies of using the programme to hire overseas workers at the expense of those from America. "I am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini," Sonderling said.

He said the Department of Labour would "not accept any new or process any pending permanent labour certification applications" involving the companies.

According to Sonderling, the companies had collectively requested "almost three million foreign workers" since 2009. They had received more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications, he said. "That's hundreds of thousands of jobs that were taken from American workers," he said.

In a statement, industry body Nasscom said, the number of employees transitioning from H-1B visas to permanent residency through the PERM process is relatively limited. "Over the past few years, Indian technology companies have significantly reduced their dependence on H-1B visas, while steadily expanding local hiring. They work with the majority of the US fortune 500 companies, enable them to innovate and grow, and generate more local jobs."