For Indian IT workers working in the US, the path to getting a green card has become difficult. The US government has suspended Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech, Cognizant, Capgemini, Microsoft and Adobe from the PERM i.e. Green Card Permanent Labor Certification process. The government has accused these companies of abusing visa and employment regulations. Due to this decision, the plans of foreign employees working in these companies to stay permanently in the US may be stopped. According to American officials, these companies have obtained more than one lakh labor certificates since 2009.

.@VP: “There is no company in the United States, unfortunately, that has abused this system more than Microsoft.”

Microsoft laid off 6,000 American workers after certifying that it could not find qualified American workers in 2025 — even though the company was approved for more than 6,000 H-1Bs and filed 3,682 PERM applications, including nearly 1,000 applications for the same positions in which American workers were laid off.

— Rapid Response 47 (@RapidResponse47) October 8, 2026

1. What is the PERM process?

PERM stands for Program Electronic Review Management is an important process for obtaining an employment-based green card in the United States. In this, the company must prove to the US Department of Labor that suitable American workers are not available for the relevant job. Also, hiring foreign workers is not negatively affecting the wages and working conditions of American workers.

After this the company can proceed to the next process of green card. The US Labor Department said it will not accept new PERM applications related to these 8 companies and will not act on already pending applications.

2. Why did America take action against the companies?

The US government alleges that some companies abused the rules to hire foreign workers. The government says this has affected the jobs and wages of the American people. According to officials, these companies have applied for nearly 30 lakh foreign workers since 2009 and have been approved for over 2.30 lakh H-1B visas. These companies have also obtained more than one lakh permanent labor certificates.

Vice President JD Vance broke down the data:

“If you’re working in the United States of America as an H-1B visa, you’re making $20,000 less than an American citizen in the same position. If you’re brought in by one of these foreign outsourcing firms, you’re making $48,000 less than an American citizen in the same position. So I’m sure everyone here understands that you’re in the outsourcing game. At home, you’re laying off American workers. And, if you’re a corporation, you make tons of money by undercutting the wages of American workers, replacing them with people who clearly shouldn’t be in the United States of America.”

— Vice President JD Vance (@VP) October 8, 2026

3. What will be the impact on employees and families?

Indian workers working in the US on an H-1B visa may have to stay on a temporary visa for a longer period of time. Closing the PERM process does not automatically revoke their existing H-1B visas. However, the situation can become difficult for employees who want to extend their visa. Such people will either have to change their company or leave the US after the 6-year term of the H-1B visa expires.

If you change jobs, you may have to start the green card process again with the new company. Anyway, Indians have to wait 12 to 15 years for a green card. Due to the new ban, Indian workers will not be able to apply for green cards, making their wait even longer. The US government has not yet specified how long the ban will continue.

Around 10 lakh Indians are waiting for green card

According to a report by the National Foundation for American Policy (NFAP), nearly one million Indians in the US are waiting for employment-based green cards. As of December 2025, Indians accounted for about 79% of the total pending cases of employment-based green cards. According to the report, country-based restrictions on issuing green cards are affecting Indian citizens more than citizens of China and the Philippines.

According to the NFAP report, if a skilled Indian professional started the process of getting a US green card based on a job or labor certificate in January 2026, he may have to wait that many years in different categories.

• EB-1 category: 4 to 5 years
• EB-2 category: 179 years
• EB-3 category: 38 years

However, these are NFAP projections for 2026, not a fixed timeline for an individual to receive a green card. Waits can also change as laws, visa numbers and backlogs change.

The US government’s new decision will create more difficulties for Indians, as millions of their green card applications are already pending in the US. In the US State Department’s September 2026 visa bulletin, visas for Indians were not available for issuance of green cards under the EB-2 category. However, the situation has changed in the new bulletin of October 2026. Now it is the turn of Indian applicants whose priority date is before November 1, 2013 in this category. At the same time, only applicants in the EB-3 category, who applied before January 1, 2014, had their turn. In the US, the number of green cards each country’s citizens receive each year is limited based on employment.

4. What will be the impact on career and future plans?

Getting stuck in the green card process can cause problems in changing jobs, getting promotions, and making long-term career plans. Decisions such as buying a home, children’s education and saving can also be subject to uncertainty. Companies have to pay more attention to recruitment, deployment of foreign workers and compliance with regulations. Scrutiny may also increase on the practices of third-party companies employing workers and sending workers from other countries to the US.

In addition, affected companies can explore legal options and modify their practices in accordance with the regulations. At the same time, some Indian professionals may seek employment in other countries where the path to permanent residency is clear. Some may be forced to return to India.

5. What is the difference between H-1B visa, PERM and green card?

The H-1B visa allows work in the United States for a fixed period of time. At the same time, PERM is the initial step in the process of obtaining a green card to live permanently in the United States. After this the rest of the green card process is completed. The US government has not said how many Indian workers will be affected by its decision. Also how long will this ban on 8 companies last?