US Green Card Restrictions on Indian IT Companies: What TCS and Infosys Employees Should Know
The United States has taken a significant step in its immigration crackdown by suspending several major technology companies from participating in the employment-based Permanent Labour Certification Programme, commonly known as PERM. The companies affected include Indian IT giants Tata Consultancy Services (TCS), Infosys, Wipro and HCLTech, alongside Cognizant, Capgemini and American technology companies Microsoft and Adobe.
Announced on October 8, 2026, the move has raised concerns among Indian technology professionals who work in the United States on H-1B visas and hope to obtain permanent residency through employer sponsorship. The immediate impact is on an important stage of the Green Card process, rather than on every existing visa or Green Card.
The decision also signals a potentially more difficult environment for companies that depend on international technology talent. However, the extent of the impact will vary considerably between employers and individual employees.
What Has the US Government Announced?
The US Department of Labor has suspended the affected companies from the PERM programme while investigations into alleged violations continue. According to reporting on the announcement, the department will not accept new PERM applications involving these employers or process their pending applications during the suspension.
US officials have alleged that some companies used foreign-worker hiring practices that disadvantaged American employees. Vice President JD Vance and Labor Secretary Keith Sonderling have presented the action as part of a broader effort to protect domestic employment and address suspected abuse of immigration and labour rules.
It is important, however, to distinguish allegations from established findings. The announcement does not by itself prove that every affected company committed wrongdoing, and company-specific evidence and the eventual outcomes of investigations remain important.
The suspension covers a critical part of employment-based immigration. It does not automatically cancel all existing H-1B visas or revoke Green Cards that have already been granted.
What Is the PERM Programme?
PERM stands for Program Electronic Review Management. It is the US Department of Labor’s labour-certification process, generally used when an employer sponsors a foreign employee for an employment-based Green Card in categories such as EB-2 and EB-3.
Under the usual process, an employer must demonstrate that it has met applicable recruitment requirements and that there are no able, willing, qualified and available US workers for the relevant position at the required employment conditions. The Department of Labor then evaluates the application.
Once labour certification is approved, the employer can generally proceed to the next stage, which involves filing an immigrant petition with US Citizenship and Immigration Services, subject to the applicable rules.
For Indian professionals, the process can already be lengthy because demand for employment-based Green Cards from India greatly exceeds the number available. The priority date and the availability of an immigrant visa number are therefore particularly important.
The suspension creates another obstacle for employees whose employers have not yet completed the PERM stage.
How Will TCS Employees Be Affected?
TCS employees seeking employer-sponsored permanent residency should first determine the stage their cases have reached.
Employees whose Green Card process has not yet reached PERM filing are likely to face the most immediate difficulty. If their employer cannot submit a new application while the suspension remains in force, the process may not advance as planned.
Employees with pending PERM applications could also face delays because the announcement covers applications already awaiting processing.
TCS, however, has indicated that the suspension is unlikely to significantly affect its workforce strategy or client operations. Reuters reported on October 9 that the company had filed only a handful of PERM applications, estimated in single digits, over the preceding two years. TCS also reiterated its plan to hire 15,000 US-based employees over five years.
This distinction matters. A government action can have substantial implications for immigration policy without producing the same operational consequences for every company. TCS’s reported position suggests that its direct exposure through PERM filings may be limited, although individual employees should confirm their own circumstances with the company’s immigration team.
What About Infosys Employees?
Infosys employees who are relying on employer-sponsored Green Cards could encounter a similar procedural barrier.
The immediate concern is whether an employee’s case requires a new PERM application or depends on an application that remains pending. Employees at earlier stages of the process may have to wait before the employer can take the next step.
The impact should not be interpreted as an automatic termination of employment or an immediate loss of legal immigration status. The PERM programme and the H-1B temporary work visa serve different purposes.
Infosys employees should seek written clarification from their employer’s immigration or human resources team about the status of their cases, the effect of the suspension and whether any alternative route is available under current law.
The same broad advice applies to employees of Wipro, HCLTech and other affected companies.
Does the Suspension Cancel Existing H-1B Visas?
No. The suspension of PERM processing does not, by itself, cancel an existing H-1B visa or authorisation to work in the United States.
The H-1B programme allows eligible employers to employ foreign professionals in specialty occupations for a temporary period, subject to immigration rules and individual circumstances. A Green Card, by contrast, provides permanent-resident status.
An employee whose H-1B status remains valid is not automatically required to leave the United States simply because the employer’s PERM application is suspended.
Nevertheless, the two processes can be connected. Certain H-1B holders may qualify for extensions beyond the normal six-year limit when specific Green Card-related milestones have been reached. A prolonged inability to initiate or advance the required labour-certification process could therefore complicate future extension planning for some workers.
Employees approaching their H-1B time limit should obtain individual legal advice promptly rather than assume that the suspension has no consequences for them.
Why the Indian Green Card Backlog Makes This More Serious
Indian nationals already face exceptionally long waits in several employment-based Green Card categories. Annual numerical limits and country-specific limits mean that even after an employer completes the required paperwork, an immigrant visa number may not be immediately available.
The suspension can create two separate problems. First, employees who have not secured the relevant stage of employer sponsorship may have to wait longer to begin or advance their cases. Second, existing backlogs can continue even after a suspension is lifted.
For workers who have spent several years building careers in the United States, uncertainty over permanent residency can affect decisions about family relocation, children’s education, property purchases and long-term financial commitments.
However, the consequences are not identical for everyone. An employee who already has permanent residency is in a different position from someone waiting for PERM filing or an immigrant petition. Each case must be assessed according to its stage and the rules that apply.
What Should Affected Employees Do Now?
Indian technology professionals should take several practical steps.
First, confirm the exact status of the case. Ask whether the employer has started recruitment, filed PERM, received certification or proceeded to the immigrant-petition stage. These are different milestones.
Second, check H-1B validity and extension eligibility. Employees approaching the six-year limit should not delay discussions with their immigration counsel.
Third, request written guidance from the employer. TCS, Infosys and other affected companies may have different internal processes and levels of exposure.
Fourth, avoid making major decisions based on rumours. A suspension of labour certification is not equivalent to cancellation of every work visa, nor does it automatically mean that all employees must return to India.
Finally, consult a qualified US immigration attorney. Alternative immigration categories, eligibility for extensions and the treatment of existing applications depend on individual facts. No alternative should be assumed to be available without a proper legal assessment.
What Does This Mean for India’s IT Industry?
The development reinforces the importance of reducing excessive dependence on any single country’s immigration framework. Indian IT companies have increasingly expanded local recruitment, offshore delivery centres and distributed project teams to serve international clients.
Greater local hiring in the United States can help companies reduce exposure to immigration uncertainty, although it also brings recruitment and operating costs. A more restrictive environment could influence how businesses allocate projects between US offices and delivery centres in India.
For Indian technology professionals, the decision may encourage more careful evaluation of overseas assignments, visa pathways and long-term residency prospects before accepting international transfers.
At the same time, the suspension’s actual business impact remains uncertain. TCS’s statement about its limited PERM filings illustrates why it is necessary to examine company-specific exposure instead of assuming that every Indian IT firm will experience identical disruption.
Conclusion
The US suspension of PERM processing for TCS, Infosys and other major technology companies is a serious development for workers pursuing employer-sponsored permanent residency. It could delay applications, complicate immigration planning and create additional uncertainty for some H-1B professionals, particularly those approaching the normal visa-duration limit.
However, the action does not automatically cancel existing H-1B visas or revoke previously granted Green Cards. Its impact depends on the employer, the employee’s current immigration status and the stage of the Green Card application.
For affected Indian professionals, the priority should be to establish the precise status of their cases, understand their H-1B extension options and obtain reliable legal advice. The next important developments will be the progress of the government investigations, any clarification of the suspension’s scope and whether the affected employers regain access to the PERM process.
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