Last updated: October 9, 2026. This is a developing story and this page will be updated as the US Department of Labor publishes details.
On October 8, 2026, US Labor Secretary Keith Sonderling announced that eight employers have been suspended from the Permanent Labor Certification programme, known as PERM. Six of them are IT services firms with a large Indian workforce in the US: Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Cognizant and Capgemini. The other two are Microsoft and Adobe, which the Labor Secretary said were suspended because of multiple active federal investigations.
⚡ Quick summary
- What happened: On October 8, 2026, the US Labor Department suspended 8 employers from PERM, the first step of employer-sponsored green cards.
- Who: TCS, Infosys, Wipro, HCL Technologies, Cognizant, Capgemini, Microsoft and Adobe.
- What it blocks: New PERM applications are not accepted and pending ones are not processed.
- What it does not change: Current H-1B status and the right to work.
- Biggest risk: H-1B workers nearing the six-year limit without a PERM filed.
PERM is the first step in most employer-sponsored US green cards. So while headlines say "the US stopped green cards for Indian companies", the precise position is narrower, and it matters if you or someone in your family works at one of these companies.
📢 What exactly was announced
- New PERM applications from the eight companies will not be accepted.
- Pending PERM applications from these companies will not be processed.
- The announcement was made at the White House campus alongside Vice President JD Vance, who heads the administration's anti-fraud task force.
- The Labor Department said these companies together requested almost 3 million foreign workers since 2009, received over 230,000 H-1B approvals and over 100,000 permanent labor certifications. The department has not published the data behind these figures.
- No criminal charges have been announced against any of the eight companies.
This builds on an earlier step. On September 8, 2026, the Labor Department's Inspector General suspended PERM filings by Cognizant and Cloudera, as part of an H-1B and PERM fraud investigation his office opened in July 2026.
📘 What is PERM, in plain words?
Before a US employer can sponsor a foreign worker for an employment-based green card (EB-2 or EB-3), it usually has to get a labor certification from the Department of Labor. To get it, the employer must show that no qualified US worker is available for the role and that hiring the foreign worker won't hurt US wages. That certification is PERM. Only after PERM is approved can the employer file the next form (I-140), and only after that does the worker wait for their priority date to become current.
So if PERM is blocked, the green card process cannot start or move forward for workers at that employer.
👥 Who is affected and who isn't
| Situation | Impact after October 8 |
|---|---|
| Current H-1B status and permission to work | Unchanged |
| New PERM application at one of the 8 companies | Not accepted |
| PERM already filed and pending at one of the 8 companies | Not processed until the suspension is lifted |
| PERM already certified by the Labor Department | Not addressed in the announcement |
| Approved I-140, waiting for priority date | No new PERM needed; not directly targeted by this action |
| Employees at companies not on the list | Not affected by this announcement |
⏳ The biggest risk: the six-year H-1B limit
H-1B status is generally limited to six years. Workers can extend beyond six years only if a PERM or I-140 was filed for them at least 365 days earlier, or if they already have an approved I-140 and are stuck in the green card queue because of the per-country limit.
That means the people most exposed are H-1B workers in their fourth or fifth year whose employer has not yet filed PERM. While the suspension lasts, their 365-day clock cannot start. For Indian nationals, who face the longest green card backlogs, these extensions are often the only way to keep working in the US while they wait.
⚠️ Who should act first: If you work at one of these 8 companies, are in your 4th or 5th year of H-1B, and your employer has not yet filed PERM, speak to your company's immigration team and an independent immigration attorney this week.
👨👩👧 Impact on spouses (H-4 EAD)
An H-4 spouse can get a work permit (EAD) only if the H-1B worker has an approved I-140 or is on an extension beyond six years. If PERM is frozen, families that don't yet qualify will have to wait longer before the spouse can work. H-4 EADs already issued stay valid until the date printed on the card.
✅ What employees can do now
- Check where your case stands. Ask your employer's immigration team whether your PERM is not yet filed, pending, certified, or whether your I-140 is already approved. Your options depend on this.
- Know your H-1B dates. Work out how many years you have left on H-1B and when your current I-94 expires.
- Understand the option to switch employers. As announced, the suspension covers applications involving the eight named companies. A new employer not on the list can file its own H-1B transfer and its own PERM. A PERM your old employer already filed can still count toward the 365-day clock, as long as it hasn't been denied or withdrawn.
- Talk to an immigration attorney before making a job change or travel decision. Every case is different.
📊 How this fits with the green card backlog
Even before this action, Indian applicants faced a long wait because of the 7% per-country cap. The October 2026 Visa Bulletin, the first of US fiscal year 2027, shows these Final Action Dates for India:
| Category | Final Action Date (October 2026) |
|---|---|
| EB-1 India | February 1, 2023 |
| EB-2 India | November 1, 2013 |
| EB-3 India | January 1, 2014 |
EB-2 India had been unavailable at the end of fiscal year 2026 and became available again in October. The PERM suspension does not change these dates, but it can stop new workers from entering the queue at all.
💰 Plan your finances for uncertainty
Visa uncertainty is also a money question. If your family's plans depend on a US job, it helps to prepare for more than one outcome:
- Build an emergency fund. Many families aim for at least six months of expenses, so a job change or a move does not force rushed decisions.
- Run the numbers on a return to India. Use our salary calculator to compare in-hand pay for Indian offers, and our home loan calculator if you are thinking of buying a home here.
- Keep long-term goals on track. Check whether your savings still reach your target with the retirement calculator and track everything in one place with the net worth calculator.
- Time remittances sensibly. If you send money home, our explainer on the rupee at ₹94–95 per dollar covers who gains and who loses from the current exchange rate.
❓ What we don't know yet
- How long the suspension will last.
- Which regulation the Labor Department is relying on. Its PERM rules allow it to pause cases for employers under investigation, initially for up to 180 days.
- What happens to PERM cases that were already certified before October 8.
- Whether more employers will be added to the list.
We will update this article when the Labor Department publishes an official notice.
🙋 Frequently asked questions
Has the US banned green cards for Indians?
No. The action suspends PERM processing for eight named employers. Indians working for other employers, and Indians applying through family or other routes, are not affected by this announcement.
Will H-1B employees at TCS, Infosys or Wipro lose their jobs or visas?
No. Current H-1B status and work authorization are unchanged. Consultants can keep working on client projects. The suspension affects the green card process, not the right to work today.
Is this a ban on these companies doing business in the US?
No. It applies only to the PERM labor certification programme.
Where can I check official updates?
Watch the US Department of Labor newsroom and the US State Department Visa Bulletin.
This article is for general information based on public announcements and news reports as of October 9, 2026. It is not legal or financial advice. Immigration rules can change quickly; consult a qualified immigration attorney about your own case.
