The Trump administration’s suspension of major technology companies from the US Permanent Labour Certification (PERM) programme could complicate the path to permanent residency for Indian professionals working in the country. The affected companies include Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Cognizant, Capgemini, Microsoft and Adobe. The US Department of Labour has said it will stop accepting new applications and processing pending labour certifications involving these firms amid allegations of programme abuse.

The consequences may extend beyond an immediate halt to applications. Immigration attorney Geeta Darubra of Alma Immigration told India Today Digital that continued uncertainty could lead companies to sponsor fewer Green Cards or hire more US workers, a shift consistent with the Trump administration’s stated objective. For Indian H-1B workers who hope to settle permanently in the US, the suspension raises questions about whether their employers will continue sponsoring them and how long their immigration plans could be delayed.

“If this trend continues, companies may place more emphasis on compliance, hire US workers and use alternative visa categories such as the L-1A,” Darubra said.

The potential impact is particularly significant for Indian professionals already facing lengthy waits in the employment-based EB-2 and EB-3 Green Card categories. If scrutiny expands and employers become more cautious about sponsorship, some workers could reconsider whether the US remains their preferred long-term destination.

What Is PERM And Why Is It Important?

PERM stands for Permanent Labour Certification. It is a key stage in many employer-sponsored employment-based Green Card applications, requiring employers to demonstrate to the US Department of Labour that there are not enough qualified, willing and available American workers for a particular position.

Employers must also establish that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed US workers. Once PERM certification is approved, an employer can generally proceed with an I-140 immigrant petition, followed by the worker’s application for permanent residency when an immigrant visa becomes available and other eligibility requirements are met.

The suspension is significant because employees whose employers have not yet initiated the PERM process cannot begin that stage while their companies remain barred from participating in the programme. The halt could therefore delay the start of their employment-based Green Card applications.

Darubra said the suspension does not automatically cancel existing H-1B visas. The immediate concern is instead for workers who have not yet started PERM and those approaching the end of their permitted H-1B stay.

What Could Be The Immediate Impact On Indians?

For Indian employees at the affected companies, the immediate consequence is likely to be uncertainty over when their employers can begin or resume the Green Card process. Workers whose PERM applications have not yet been filed may be unable to move forward through this route for as long as the suspension remains in force.

“Any employee whose company has not yet filed a PERM, cannot start the PERM process,” Darubra said.

The delay matters because many Indian professionals use employer-sponsored immigration to transition from temporary work status to permanent residency. A prolonged suspension could leave employees waiting longer to begin the process, even if their employment and existing visa status remain valid.

Does The PERM Suspension Affect H-1B Visas?

The suspension does not, by itself, cancel an employee’s valid H-1B status. An Indian professional working for TCS, Infosys, Wipro or HCL does not automatically lose the right to remain and work in the US simply because the employer has been suspended from the PERM programme.

“As long as an employee has valid H-1B status, this suspension does not affect their H-1B status or ability to remainwork in the US on valid H-1B status,” Darubra said.

The distinction is important: the H-1B is a temporary work visa, while the Green Card process offers a route towards permanent residency. The suspension directly affects the employer’s participation in the labour certification process, rather than automatically invalidating the employee’s existing H-1B status.

Which Indian Workers Could Be Hit Hardest?

The consequences will vary depending on each worker’s immigration history and how far their employer has progressed with the Green Card application. An employee with valid H-1B status who is not close to the six-year limit may primarily face delays and uncertainty about permanent residency.

The situation can become more complicated for workers approaching the general six-year maximum for H-1B status. US immigration rules provide certain extensions beyond that period for eligible workers, including some whose employment-based Green Card processes have reached qualifying stages.

Darubra said the suspension could affect H-1B holders approaching the six-year limit if they do not have a PERM application in process or an approved I-140 petition.

This does not mean every worker approaching the limit will automatically have to leave the US. However, the interruption could complicate immigration planning and restrict access to certain options that depend on progress through the employment-based Green Card process.

What Happens To Pending PERM Applications?

The status of applications already in the system is another concern for affected employees. Darubra said pending applications were not automatically cancelled based on the information available at the time, although she suggested they could face greater scrutiny from the Labour Department.

“This is only speculation,” she said, referring to the possibility of increased audits.

Workers whose applications are already under way will therefore be watching how the department handles pending cases and whether the suspension is lifted or extended. US Vice-President JD Vance has said the suspension would remain in place “as long as it needs to”.

Why Indian Applicants Could Face Longer Waits

Indian professionals seeking permanent residency through employment-based categories such as EB-2 and EB-3 already face substantial backlogs. The suspension introduces another potential obstacle for workers whose employers can no longer initiate or progress through the PERM stage.

Darubra said the additional uncertainty could affect both Indian workers and their dependants, particularly those without an approved I-140 petition.

“They already face immense backlogs to obtain their US green card, and this additional layer can add even more wait times,” she said.

The concern is not limited to a delayed application. For workers already navigating lengthy immigration timelines, a further interruption could affect decisions about employment, future visa extensions and whether to continue pursuing permanent residency in the US.

Could IT Companies Change Their US Hiring Strategies?

If the suspension continues, Indian IT companies may reassess their approach to recruiting foreign professionals and sponsoring them for permanent residency. Darubra said it was too early to predict the precise response, but companies could potentially reduce Green Card sponsorships or increase hiring among US-based workers.

Such a shift could affect employees even before their employers begin the PERM process. A company that becomes more cautious about long-term sponsorship may offer fewer opportunities for workers who see permanent residency as the next step after securing a US job.

The companies could also explore other immigration routes where employees meet the relevant eligibility criteria. However, alternative visas would not necessarily provide a straightforward solution for every affected worker.

Could Companies Turn To The L-1A Visa?

The L-1A visa is one alternative employers may consider for eligible intracompany transfers involving executives and managers. It can also provide a route towards permanent residency through the EB-1C employment-based category without requiring PERM labour certification.

However, the L-1A is not a direct substitute for the H-1B visa for all employees. Eligibility depends on factors including the worker’s role, employment history and the nature of the transfer. Indian IT professionals cannot simply switch to this category solely because their employer’s PERM participation has been suspended.

Will Indian Professionals Rethink Settling In The US?

The suspension could also influence how Indian H-1B workers view the prospect of building a long-term future in the US. If employers become less willing to sponsor Green Cards, workers may face greater uncertainty about whether temporary employment can eventually lead to permanent residency.

That uncertainty comes on top of existing backlogs and the broader tightening of US immigration policy. Darubra said Indian professionals could become more reluctant to settle in the country if scrutiny of employers and immigration applications expands further.

What Happens Next For Indian H-1B Workers?

Several questions remain unresolved, including how long the suspensions will last, how pending applications will be handled and whether the affected companies will change their Green Card sponsorship policies. It is also unclear whether further employers could face similar restrictions.

Darubra said the development signals that employers are likely to face greater scrutiny over compliance and documentation related to PERM and H-1B applications.

For Indian professionals, the key distinction is that the suspension does not automatically cancel their existing H-1B visas. Instead, it blocks an important stage of the employment-based route to permanent residency for workers whose employers are affected, leaving many to wait for clarity on when their Green Card applications can move forward.

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