US green card suspension: What it means for Indian IT workers on H-1B visas

Source: The post “US green card suspension: What it means for Indian IT workers on H-1B visas” has been created based on “US green card suspension: What it means for Indian IT workers on H-1B visas” published in “Business Standard” on 9th October 2026.

UPSC Syllabus: GS-2-International Relations

Context: Recently, US administration suspended processing under the employment-based immigration programme known as Program Electronic Review Management (PERM) for selected technology and IT services companies. The action comes as the US administration intensifies scrutiny of H-1B hiring and alleges abuse of programmes used to employ foreign workers.

About Program Electronic Review Management (PERM) and its Importance

1. Program Electronic Review Management (PERM) is the US Department of Labor’s process for certifying that an employer can sponsor a foreign worker for a permanent job without adversely affecting American workers’ wages, working conditions or employment opportunities.
2. The employer must establish the required wage and conduct recruitment to determine whether qualified US workers are available.
3. For most employer-sponsored green cards, the process has three stages:
   1. PERM labour certification: The employer completes the required wage and recruitment process to test the availability of qualified US workers.
   2. I-140 immigrant petition: After labour certification, the employer generally files an immigrant petition with US Citizenship and Immigration Services (USCIS).
   3. Green card: The worker proceeds to the final stage when eligible and when an immigrant visa is available under the applicable category and priority-date rules.
4. The suspension disrupts the first stage. Workers whose cases have not reached PERM filing may be unable to begin the usual employer-sponsored green card process while the suspension remains in force.

Impacted Companies and what suspension means

1. The eight companies named in the announcement were:
   1. Indian IT services companies: Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech and Cognizant.
   2. Other technology companies: Microsoft, Adobe and Capgemini, a French IT services firm.
2. The suspension targets these named employers. It is not a blanket ban on all Indian nationals or all technology companies.
3. It is to note that an employee may continue to hold valid H-1B status even when the green card process is delayed, provided the employee continues to meet applicable immigration requirements.
   1. However, the ability to remain in the US depends on the employee’s visa status, expiry dates and eligibility for extensions.
   2. Employees approaching the end of their permitted stay should seek individual immigration advice rather than assume that the suspension has no consequences.

Reasons behind the suspension

1. Alleged displacement of American workers: Authorities alleged that some employers used employment-based immigration programmes to replace American workers with lower-paid foreign workers.
2. Workforce reductions: The administration questioned the use of large volumes of H-1B and PERM filings alongside workforce reductions.
3. Wage suppression: Concerns were raised about recruitment practices and their possible impact on wages and working conditions.
4. Alleged fraud and non-compliance: Investigations are continuing into possible fraud and violations of labour certification requirements.
5. Extensive use of immigration programmes: Labor Secretary Keith Sonderling highlighted the affected employers’ extensive use of employment-based immigration programmes, while Vice President JD Vance pointed to cases requiring further investigation.

Impact on Indian IT professionals working in the US

The impact depends on the stage of the employee’s green card application:

1. Employees who have not started PERM: These workers may face the most immediate disruption because their employers cannot file new PERM applications during the suspension. They may have to wait before beginning the standard green card process and cannot establish a priority date through a new PERM filing during this period.
2. Employees with pending PERM applications: The Department of Labor has reportedly halted processing of pending applications involving the affected employers. These employees may face delays, and the precise treatment of individual cases remains unclear.
3. Employees whose PERM has already been approved: Their position may differ from that of employees awaiting labour certification. The authorities have not clarified whether previously approved certifications or subsequent immigrant petitions will be affected. Employees should not assume that existing approvals have automatically been cancelled.
4. Employees approaching the H-1B six-year limit: Under certain conditions, US rules allow H-1B holders to extend their stay beyond the usual six-year limit while pursuing employment-based permanent residency. Delays in starting PERM could complicate extension planning for some employees, depending on their circumstances and eligibility.
5. Uncertainty about the duration: The authorities have not clarified how long the suspension will last, how reinstatement will work or whether previously approved certifications and immigrant petitions will be affected.

Broader impact on the technology industry

1. Uncertainty in talent mobility: The suspension may create uncertainty for Indian professionals whose employers are sponsoring their permanent residency.
2. Possible loss of skilled talent: Restrictions on permanent residency may lead some talented foreign workers to leave US or discourage others from coming, even temporarily.
3. Local hiring and workforce development: Indian technology companies have reportedly reduced their dependence on H-1B visas in recent years while expanding local hiring and building a stronger domestic workforce in US.
4. Business and innovation: Indian technology companies work with the majority of US Fortune 500 companies enabling innovation, business growth and the generation of more local jobs.
5. Increased compliance scrutiny: Companies are advised to review recruitment practices and documentation to ensure that their PERM programmes comply with applicable requirements.

Implications for India–US technology relations

The key implications are:

1. Indian professionals may face uncertainty regarding permanent residency, career planning and continued employment in US.
2. Indian IT companies may need to strengthen compliance with labour certification, recruitment and documentation requirements.
3. US technology sector may face talent-retention challenges if restrictions discourage skilled professionals from entering or remaining in the country.
4. Local workforce development may gain importance as Indian technology companies continue expanding their US-based workforce.

Way forward

1. Strengthen compliance: Employers should review their recruitment practices, labour market testing and documentation.
2. Clarify the suspension: Authorities need to clarify its duration, reinstatement procedure and treatment of previously approved cases.
3. Protect skilled talent mobility: Immigration policies should consider the importance of skilled workers in addressing talent gaps and supporting innovation.
4. Provide individual guidance: Affected employees, particularly those approaching the H-1B six-year limit, should seek advice based on their specific immigration status and eligibility.
5. Maintain a balanced approach: The protection of American workers should be balanced with the legitimate need for skilled international talent.

Conclusion: The suspension of PERM processing for selected technology companies highlights US administration’s concerns about alleged immigration misuse, wage suppression and the displacement of American workers. However, it does not constitute a blanket shutdown of the employment-based immigration system or automatically cancel H-1B visas. The challenge is to ensure compliance with labour laws while preserving skilled talent mobility, innovation and the competitiveness of the technology industry.

Question: US administration’s suspension of PERM processing for selected technology companies has raised concerns about Indian IT professionals and skilled talent mobility. Discuss its implications and way forward.

Source: Business Standard