On May 12, the U.S. Department of Labor announced a freeze on PERM applications from eight technology giants, citing concerns that the program had been used to sideline American workers.
The eight firms—Microsoft, Tata, Wipro, Infosys, Adobe, Cognizant, HCL, and Capgemini—had together processed roughly 12,000 PERM filings in the last two years, representing about 5% of all U.S. tech green‑card petitions.
More than 5.2 million people of Indian origin live in the U.S., and roughly 70,000 Indian IT professionals currently hold H‑1B visas that could have transitioned to permanent residency through PERM.
DOL spokesperson Martin Johnson told Reuters the move “is aimed at protecting U.S. jobs and ensuring that the labor market is not distorted by foreign hiring practices.” Microsoft’s talent‑acquisition chief Venkatesh Kumar warned that the ban would “significantly complicate our ability to secure long‑term talent from India.”
The Department said it would neither accept new PERM petitions nor review pending ones, forcing affected employees to pursue family‑based or self‑petition routes, which could take years. Companies are scrambling to adapt, with some exploring alternative sponsorship models and others urging Congress to revisit the policy.