Big Setback for Indian IT Companies in the US

Indian IT companies operating in the United States have faced a major setback with the US Department of Labor suspending eight technology firms from the Permanent Labor Certification (PERM) programme. Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe have been suspended. The department said it would not accept new or process pending PERM applications involving the affected companies.

PERM is a key step in the employment-based Green Card process for foreign workers in the US. The suspension could delay permanent residency applications for employees of the affected companies. However, the move does not itself cancel existing H-1B visas or stop the companies from employing H-1B workers. US authorities said the action comes amid broader scrutiny of alleged misuse and fraud in employment-based immigration programmes.