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On October 8, 2026, Labor Secretary Keith Sonderling announced that six IT outsourcing firms, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, were suspended from the U.S. Permanent Labor Certification Program (PERM). The same announcement covered Microsoft and Adobe, which were suspended because of active federal investigations. Officials cited alleged fraud, alleged misuse of foreign-worker programs and claimed harm to U.S. workers. These are the administration’s allegations. The reporting does not show that any named company has been found to have committed misconduct.
The practical effect is narrow. While the suspension is in force, the named companies cannot make new PERM filings. PERM is an employer-led step in employer-sponsored green-card processing. It is not the H-1B visa itself, and the reporting does not establish that existing green cards or H-1B status are automatically cancelled.
Which companies are covered
The headline lists Cognizant, TCS, Wipro and HCL. The announcement’s list used the name “Tata” rather than “TCS,” and the reporting does not say which Tata entity is covered. Treat TCS-specific claims as unconfirmed until the Labor Department names the entity.
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| Company | How it appears in the announcement | Stated basis |
|---|---|---|
| Cognizant | Named in Sonderling’s list of IT outsourcing firms | Suspension from PERM; officials’ fraud and worker-displacement rationale |
| Infosys | Named in the same list | Same as above |
| Tata | Named in the same list as “Tata”; the specific entity is not stated | Same as above |
| Wipro | Named in the same list | Same as above |
| HCL | Named in the same list | Same as above |
| Capgemini | Named in the same list | Same as above |
| Microsoft | Described separately from the list | Suspended; active federal investigation cited |
| Adobe | Described separately from the list | Suspended; active federal investigation cited |
The Microsoft and Adobe entries rest on investigations, not on the outsourcing rationale. Keep the two groups separate when describing them. Sources: The Indian Express explainer, updated October 9, 2026 and The Associated Press, October 8, 2026.
What PERM is and where it sits in the green-card process
PERM (Program Electronic Review Management) is the labor-certification stage that an employer generally files before sponsoring an employee for an employment-based green card. Its purpose is to test whether hiring a foreign worker would adversely affect U.S. workers. It is distinct from H-1B, which is a temporary nonimmigrant work visa.
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The PERM sequence
- The employer obtains a prevailing-wage determination for the role.
- The employer conducts the prescribed recruitment for U.S. applicants.
- The employer files the PERM application. The Indian Express reports that its acceptance date generally becomes the worker’s priority date, which sets the worker’s place in the employment-based immigrant-visa queue.
- If the labor certification is granted, the employer can move to the next stage of employment-based sponsorship.
Because the priority date is usually fixed at the PERM acceptance stage, a worker whose employer has not yet filed may lose time when filings are paused. How much time is lost depends on the individual case and on the visa category’s queue.
What the suspension changes, and what it does not
- Changes: the suspended companies cannot make fresh PERM filings while the restriction remains in force, according to the reporting.
- Not established: whether pending PERM cases are cancelled, paused or allowed to proceed.
- Not established: whether approved labor certifications or green-card petitions are revoked.
- Not established: automatic termination of H-1B status for any worker.
- Not established: the formal legal instrument, the complete terms, its duration, or an appeal route. The Indian Express notes that an earlier Cognizant suspension had not publicly specified its duration or the number of affected applications.
The officials’ stated rationale
Sonderling said the suspensions are meant to stop fraud and prioritize U.S. workers. Vice President JD Vance described a pattern in which employers advertise a position, report no suitable U.S. applicants, and then use that result to hire foreign workers. In Vance’s words, employers would “use that lack of response to then go and replace American workers with what is effectively foreign indentured servants.” That is Vance’s characterization. It is not a neutral reading of the legal standard for PERM.
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Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.The figures in circulation and what each one measures
| Figure | Source and date | Qualification |
|---|---|---|
| Almost 3 million requests for permanent residency for foreign workers since 2009 | Sonderling, as quoted by The Indian Express, October 2026 | Official figure as quoted. The reporting does not give the underlying dataset or definitions. |
| Over 230,000 H-1B approvals | Sonderling, as quoted by The Indian Express, October 2026 | Same limits. Approvals are not the same as individual workers. |
| Over 100,000 permanent labor certifications | Sonderling, as quoted by The Indian Express, October 2026 | Same limits. Certifications are not the same as workers or jobs. |
| About 80% of roughly 6,000 H-1B applications were extensions or status changes for existing employees | Microsoft, reported by The Associated Press, October 8, 2026 | Applies to Microsoft’s prior fiscal year only. Not an independent count of new hires. |
| EB-3 final-action date of January 1, 2014 | U.S. State Department September 2026 Visa Bulletin, as reported by The Indian Express | The same bulletin showed India EB-2 final action as “unavailable.” Describes queue position, not individual case status. |
The figures show how long Indian workers already wait in the employment-based queue. They do not show how many workers the suspension will affect. The reporting gives no such estimate.
What it means for workers, by case stage
The effect depends on where a worker’s case stands. Some H-1B extension outcomes may depend on whether and when labor certification was filed, and this is conditional and case-specific.
| Case stage | Reported effect | What to check |
|---|---|---|
| Employer has not filed PERM | The named companies cannot make new PERM filings while the suspension is in force | Whether the employer is one of the named companies |
| PERM filed and pending | Not stated in the reporting reviewed (The Indian Express, October 9, 2026) | Filing date, current status, and any notice from the Labor Department |
| PERM certified | Not stated in the reporting reviewed; the suspension is described as covering new filings | Whether the next green-card stage is already filed or still planned |
| Priority date already established | Not stated in the reporting reviewed | The priority date shown on immigration notices |
Anyone with an active PERM case, or an H-1B time limit approaching, should speak with qualified immigration counsel. This article is general reporting, not legal advice. Because the action is recent, check Labor Department notices for later changes before acting on any deadline.
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