US PERM Restrictions Raise Concerns for Indian IT Professionals

US Action Against Indian IT Companies

US PERM Restrictions Raise Concerns for Indian IT Professionals: The United States has suspended several major IT companies, including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, from a programme associated with employment-based permanent residency. US authorities have cited alleged fraud and concerns that foreign recruitment may disadvantage American workers.

The action forms part of broader scrutiny of employment-based immigration programmes under President Donald Trump. The allegations concern possible wage undercutting, improper applications and displacement of domestic workers; these claims should be distinguished from established findings against individual companies.

Understanding the PERM Programme

PERM, or Program Electronic Review Management, is the US Department of Labor’s labour-certification process generally required before an employer can sponsor a foreign worker for an employment-based Green Card.

Employers must normally obtain a prevailing wage determination and conduct prescribed recruitment to demonstrate that hiring a foreign worker will not adversely affect US workers’ wages or working conditions. Once certification is approved, the employer can proceed to the relevant immigration stage.

Static GK fact: The US Department of Labor administers labour-related programmes, while the Department of State publishes the monthly Visa Bulletin governing immigrant-visa availability.

PERM and H-1B Are Different

The H-1B visa permits US employers to hire eligible foreign professionals temporarily in specialty occupations. PERM, by contrast, is a labour-certification stage associated with many employer-sponsored permanent-residency applications.

A suspension affecting new PERM filings can therefore delay the start of a worker’s Green Card process. It does not automatically cancel every existing immigration petition or remove applicants already waiting for visa numbers.

Impact on Indian Professionals

Indian applicants are particularly affected by long waiting periods in employment-based immigration categories. According to the supplied report, the September 2026 Visa Bulletin listed India’s EB-2 category as unavailable for final action, while the EB-3 final-action date stood at 1 January 2014.

Employment-based immigration is subject to annual numerical limits and per-country restrictions. High demand from India contributes to lengthy queues, making the timing of labour certification and the resulting priority date important for applicants.

Static GK Tip: A priority date helps determine an applicant’s place in the employment-based immigration queue; it does not itself guarantee permanent residency.

Implications for H-1B Extensions

Certain H-1B workers may qualify for extensions beyond the normal six-year limit under specific provisions linked to employment-based immigration applications. A delay in initiating PERM could create difficulties for workers approaching that limit.

Different rules may apply to workers whose immigrant petitions have already reached later stages but who are waiting for visa availability. Eligibility depends on the applicant’s circumstances and applicable US immigration law.

Broader Economic and Policy Significance

The suspension raises questions about employer compliance, workforce protection and the mobility of skilled professionals. For Indian IT companies, delays may complicate workforce planning and the long-term retention of employees in the United States.

The wider challenge is balancing safeguards against fraudulent applications with predictable immigration procedures for legitimate workers. The effects will depend on the duration and scope of the restrictions and any subsequent administrative or legal developments.

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US PERM Restrictions Raise Concerns for Indian IT Professionals: