In a major regulatory crackdown, the United States has suspended several major global IT and technology companies from the permanent labor certification program, commonly known as the PERM green card program. The US Department of Labor took action against top Indian IT firms including Infosys, TCS, Wipro, HCL, Cognizant, and Capgemini, alongside global tech giants like Microsoft and Adobe, citing alleged abuse and misuse of the foreign worker sponsorship system.
Understanding the PERM System and Allegations
The PERM program is a critical gateway for foreign nationals seeking permanent residency or green cards through employment in the United States. Under this framework, companies must obtain approval from the Department of Labor by demonstrating that there are insufficient qualified US workers available for the specific job role before sponsoring a foreign employee. However, US authorities claim that several multinational corporations manipulated this process to bypass local talent.
Sharp Criticisms from US Officials
US Labor Secretary Keith Sondرلिंग (Sondeling) highlighted the crackdown, singling out Microsoft for heavy criticism. He stated that no company had abused the system more than Microsoft. Furthermore, US Vice President JD Vance levied serious allegations against the tech titan, claiming that Microsoft laid off approximately 6,000 American employees in 2025 while certifying a lack of local talent, yet subsequently filed thousands of H-1B visa and green card applications for similar roles.
Top Universities Also Under Scrutiny
Beyond corporate tech giants, the US Department of Labor has expanded its probe to include nine prestigious universities, including Harvard, Yale, and Stanford. Authorities allege these academic institutions attempted to undercut American employee wages by systematically favoring international students for certain staffing roles, prompting official summons and investigations.
Impact on Foreign and Indian IT Workers
This suspension could cause significant delays and uncertainty for foreign tech professionals whose green card applications are currently pending through these sponsored firms. While previously approved green cards remain unaffected, the administration aims to ensure foreign workers are not utilized merely as low-cost alternatives to American citizens, preserving labor market integrity.
This report is based on official statements and verified international media coverages regarding US Department of Labor actions. 'The Freelance' independently aggregates global business developments for informational purposes.
National Desk, The Freelance
Verified Editorial DeskPolitics, Governance & Public Interest Reporting Team
The Freelance National Desk provides round-the-clock, verified, and in-depth analytical reporting on Indian politics, governance, policy decisions, parliamentary affairs, and public interest matters. We are committed to unbiased, factual journalism based on verified agencies, official statements, and on-the-ground correspondents.