US Suspends Eight Tech Firms from Employment-Based Green Card Process

The United States has suspended several major technology and IT services companies from the Permanent Labour Certification programme, which employers use to sponsor eligible foreign workers for employment-based permanent residency. The US administration has cited alleged fraud and concerns that foreign workers may be displacing American workers. The action could delay Green Card applications for affected Indian professionals.

Why in the News?

US Secretary of Labor Keith Sonderling announced the suspension of several major IT firms, including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.   Allegations of fraud and displacement are claims made by US authorities; they should not be treated as established findings against every affected company.

• The action forms part of the US administration’s increased scrutiny of foreign-worker programmes.
• The administration has also taken action against Microsoft and Adobe.
• US officials have raised concerns about alleged fraudulent filings, wage undercutting and the displacement of American workers.
• The suspensions may affect Indian professionals who depend on employer-sponsored Green Card applications.

What Is the PERM Programme?

PERM (Program Electronic Review Management) is the labour certification process generally required for US employers seeking to sponsor foreign workers for employment-based Green Cards. The process is administered by the US Department of Labor and aims to ensure that employing a foreign worker permanently does not adversely affect the wages, working conditions, or job opportunities of US workers.

The main steps include:

• Prevailing wage determination: The employer obtains a determination of the appropriate wage for the job.
• Recruitment: The employer follows prescribed procedures to test the availability of suitable US workers.
• Labour certification: The employer submits an application to the Department of Labor.
• Green Card process: After certification, the employer can proceed to the next stage of the employment-based immigration process.

The application’s filing date generally establishes the worker’s priority date (place in the queue for an immigrant visa). This is especially important for Indian applicants because demand for employment-based Green Cards is high relative to the number available.

Why Has the US Tightened Scrutiny?

The US administration argues that some companies have relied excessively on foreign workers instead of hiring American employees. Its concerns include:

• Job displacement: Foreign recruitment may reduce employment opportunities for US workers.
• Wage undercutting: Employers may allegedly use foreign labour to reduce employment costs.
• Fraudulent filings: Authorities are investigating suspected misuse of H-1B and PERM processes.
• Employer accountability: The administration wants companies operating in the US to give greater priority to American workers.

US officials have also referred to the number of foreign-worker applications submitted by affected companies since 2009. These figures have been used to support the administration’s position, but application and approval numbers alone do not establish that jobs were unlawfully taken from American workers.

Difference Between PERM and the H-1B Visa

PERM and H-1B serve different purposes in the US immigration system. Important: Suspension of PERM filings does not automatically mean that an employee’s existing H-1B visa is cancelled.

How Could the Suspension Affect Indian Professionals?

The immediate impact depends on the stage of the worker’s immigration process and the scope and duration of the suspension. The impact is particularly significant for Indian professionals because employment-based Green Cards are subject to annual numerical limits and per-country limits. This has contributed to long waiting periods for many Indian applicants.

• New Green Card applications: Affected employees who have not reached the PERM filing stage may face delays in starting the employer-sponsored process.
• Priority dates: Delayed filings may postpone the establishment of a priority date, affecting an employee’s place in the queue.
• Existing applications: Employees whose cases have already progressed may be in a different position, depending on the terms of the suspension and applicable rules.
• H-1B extensions: Some workers nearing the normal six-year H-1B limit rely on immigration rules linked to timely labour certification or Green Card petitions. A delay in starting PERM may affect their ability to qualify for certain extensions.

Conclusion

The suspension of major IT firms from the PERM programme reflects tighter US scrutiny of employer-sponsored immigration. For affected Indian professionals, the main concern is potential delay in the Green Card process rather than automatic cancellation of existing work visas. The practical impact will depend on the scope of the suspensions, the outcome of investigations, and the rules governing individual immigration cases.

Article Resources: Times Of India