The U.S. Labor Department halted new PERM filings and processing for eight companies, affecting paths to green cards for foreign workers.
India’s foreign ministry criticized JD Vance’s description of foreign workers as “indentured servants” as offensive, signaling a diplomatic wrinkle.
The eight firms named include Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL and Capgemini.
Experts expect potential legal challenges and questions about the impact on permanent residency timelines for affected employees.
Quick read · 2 min
The U.S. Labor Department has suspended eight firms from the PERM program, a key step toward green cards for foreign workers. The firms affected include Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL and Capgemini. India’s foreign ministry condemned JD Vance’s description of foreign workers as “indentured servants.” The move could slow green-card progress for employees at these firms, though current visas remain valid. Legal challenges are expected as employers weigh next steps. Watch for updates on duration and potential policy changes.
Why this matters to you: if PERM is part of your path to permanent residency in the U.S., your timeline could stall. If you collaborate with international teams, you may see project deadlines shift. What happens next: lawsuits, potential policy clarifications, and possible changes to PERM processing rules.
Eight firms suspended from PERM
Diplomatic tensions rise over language used
Possible delays to green-card timelines for affected workers
The United States is reshaping how it handles foreign labor in tech, with the Labor Department suspending eight companies from the PERM program, and a sharp rebuke coming from India over comments tied to the action. The suspension was announced Thursday, and India’s foreign ministry followed with a formal condemnation Friday, calling JD Vance’s description of foreign workers as “indentured servants” deeply offensive.
PERM is the first step employers use when sponsoring a foreign worker for a green card. The eight firms named are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL and Capgemini, representing a mix of U.S.-based giants and international IT services firms. The Labor Department said it will not accept new PERM applications or process existing cases for these eight while the suspension lasts.
For workers from India and other countries who lean on PERM to pursue permanent residency, the move can slow their path. Officials emphasize that PERM is separate from the H-1B visa; the suspension does not automatically affect current visas, but it can delay green-card timelines for those aiming to stay long term in the United States.
India’s spokesperson Randhir Jaiswal criticized Vance’s phrasing at a New Delhi briefing, arguing that the term evokes painful colonial-era connotations and fails to recognize the contributions of Indian professionals to the U.S. economy. The exchange underscores broader tensions over talent mobility and how immigration rules interact with big tech employers.
The Labor Department’s action arrives amid ongoing debates about immigration policy and labor protections for American workers. It signals a more aggressive approach to how large employers handle foreign labor programs, with consequences for project timelines, team staffing, and cross-border collaboration in the technology sector.
Lawyers and policy observers expect pushback. Federal law allows the agency to suspend an employer from PERM for up to 180 days, with longer bans possible after investigations. Multiple insiders anticipate lawsuits or requests for clarifications as affected workers and employers decide their next steps.
What this means for readers: if you or someone you know relies on PERM to press toward a green card, timing could shift. For teams that rely on international talent, project calendars may stretch as hiring pauses ripple through recruitment and onboarding. In both the U.S. and abroad, this is a reminder of how immigration rules can directly touch the tech work you rely on daily.
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What happened and when
The Labor Department announced the suspension on Thursday, with officials saying the measure would stay in place “as long as it needs to.” The affected firms will not have new PERM filings or active cases processed during the period. In New Delhi, the foreign ministry responded the next day with formal statements criticizing the language used by Vance and stressing that PERM is only one piece of a complex immigration framework.
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What this means for workers and companies
PERM suspensions can slow pathways to green cards for eligible employees and may shift where talent is sourced. For workers already in the U.S. on related visas, existing statuses remain valid, but their long-term residency prospects could face delays. For employers, the pause complicates hiring plans and project staffing, particularly for large tech firms with substantial cross-border teams.
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What happens next
Legal challenges are expected as employers weigh appeals and possible lawsuits. Observers will monitor whether the Labor Department extends or narrows the suspensions or adds exemptions. Diplomats will watch how the dispute influences ongoing talks on tech trade and immigration cooperation between the two countries.
The Labor Department said these eight firms are the ones affected by the current enforcement action, with new PERM filings and processing halted for them.
Do current visas stay valid?
Yes. Existing H-1B visas and green-card processes that were already under way may continue, but future progress could face delays depending on each case.
What to watch next: updates on how long the suspensions will last, any court actions, and whether new rules emerge around PERM processing.
