Description
US Suspends Major IT Firms from Green Card Sponsorship Process | PERM Program Explained | Vajirao & Reddy
The United States has suspended several major IT companies including Cognizant, Infosys, Tata (TCS), Wipro, HCL, Capgemini, Microsoft and Adobe from the PERM labour certification program, which is the first step for employer-sponsored Green Cards. What does this mean for Indian professionals?
Why in the News?
US Secretary of Labor Keith Sonderling announced the suspension citing alleged fraud, wage undercutting and concerns that foreign workers may be displacing American workers. This is part of increased scrutiny of foreign-worker programs like H-1B and PERM.
What is PERM Programme?
PERM (Program Electronic Review Management) is the labour certification process administered by US Department of Labor required for employment-based Green Cards. It ensures employing a foreign worker does not adversely affect wages and job opportunities of US workers.
PERM Process:
1. Prevailing Wage Determination
2. Recruitment Test for US workers availability
3. Labour Certification filing to DOL
4. Filing date becomes Priority Date - very crucial for Indians due to long queue
The figures cited are claims by US authorities and should not be treated as established findings against every company.
PERM vs H-1B Visa - Key Difference:
PERM is for permanent residency (Green Card process) while H-1B is a temporary non-immigrant work visa for specialty occupations (generally 6-year limit). Important: Suspension of PERM does NOT mean automatic cancellation of existing H-1B visas.
Impact on Indian Professionals:
- New Green Card applications: Delay in starting PERM filing
- Priority Dates: Delay in getting place in queue, which is already long for Indians due to annual and per-country limits
- Existing Applications: Depends on stage and scope of suspension
- H-1B Extensions: Workers nearing 6-year limit who rely on timely PERM filing for AC21 extensions may face issues
The main concern is delay, not immediate visa cancellation. Final impact will depend on duration of suspension and outcome of investigations.
This topic is highly important for UPSC International Relations, Diaspora, US Immigration Policy, and Current Affairs for UPSC 2026.
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