The US Green Card programme suspension affecting TCS, Infosys, Wipro and HCLTech could delay permanent residency plans for Indian IT professionals working in America.
The US administration announced on October 8, 2026, that eight major technology and outsourcing companies would be suspended from the Permanent Labour Certification Programme, known as PERM.
The action also covers Cognizant, Capgemini, Microsoft and Adobe.
US officials have cited alleged misuse of the employment-based immigration system and concerns about protecting American workers, while the move has raised questions about the future of employer-sponsored Green Card applications.
US Green Card Programme Suspension Explained
PERM is an important step in the US employment-based Green Card process.
Employers generally need labour certification from the US Department of Labor before they can sponsor eligible foreign employees for permanent residency through certain employment-based categories.
The certification process is intended to establish that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.
It generally involves determining the prevailing wage and conducting recruitment to assess whether qualified American workers are available for the position.
The suspension means the affected companies cannot proceed with new PERM filings while the restrictions remain in force.
Pending applications may also be affected, depending on the scope of the suspension and the applicable instructions from US authorities.
The action does not automatically cancel existing H-1B visas or Green Cards.
However, employees who depend on their employer to begin the PERM process could face delays in starting or advancing their permanent residency applications.
How the Suspension Could Affect Indian IT Workers
The biggest concern is for employees whose employers have not yet filed their PERM applications.
Without the ability to begin this stage, eligible workers may have to wait longer before progressing towards employment-based permanent residency.
The delay could be particularly significant for Indian professionals because employment-based Green Cards are subject to annual numerical limits and country-based restrictions.
Many Indian applicants already face lengthy waiting periods, making the timing of each stage important.
The suspension could also create complications for certain H-1B workers approaching the usual six-year limit on their temporary work status.
Under US immigration rules, some workers can qualify for extensions beyond six years when specific conditions relating to labour certification or employment-based immigrant petitions are met.
Workers who cannot begin the required process may need to review their individual circumstances carefully.
However, the consequences will differ from one employee to another.
Those with existing approvals or who have already reached qualifying stages of the Green Card process may be in a different position from employees whose employers have not yet initiated PERM.
Why the US Government Took Action
US officials have alleged that some companies misused employment-based immigration programmes and disadvantaged American workers.
Labour Secretary Keith Sonderling announced the suspensions, while Vice President JD Vance also criticised companies over their use of foreign labour.
The administration said the action was intended to protect American workers and address suspected abuse of immigration programmes.
The suspensions are linked to investigations and allegations; they should not be treated as proof that every affected company or employee has violated immigration law.
The move reflects increased scrutiny of employer-sponsored immigration pathways, including the use of H-1B visas and the PERM process.
For Indian technology professionals, the immediate concern is whether their employers will be able to resume Green Card sponsorship and how long the restrictions will remain in place.
What Should Affected Employees Do Now?
Employees at the affected companies should confirm the status of their individual immigration cases with their employer’s immigration team or a qualified US immigration attorney.
They should establish whether their PERM application has been filed, whether any immigrant petition has already been approved and whether their current H-1B status requires further planning.
Workers nearing the six-year H-1B limit should seek advice early because eligibility for extensions depends on the specific stage of their case and other legal requirements.
They should not assume that the suspension automatically ends their existing work authorisation or that every employee will face the same outcome.
The duration and practical effects of the restrictions will depend on further developments, including the progress of investigations and any legal challenges.
Until more clarity emerges, the suspension represents a significant obstacle for employees who rely on the affected companies to start the employer-sponsored Green Card process.
