The U.S. Department of Labor announced the suspension of the Permanent Labour Certification (PERM) program for eight major Indian IT firms on Thursday, Oct 8, 2026, citing a crackdown on fraud in the sponsorship process.
The decision follows a broader anti‑fraud review that flagged irregularities in the firms’ sponsorship records, including questionable documentation and a surge in late‑filed applications.
Zoho founder Sridhar Vembu, who has long championed the Indian diaspora’s contribution to U.S. tech, called on Indians in the U.S. to ‘come back and build India,’ warning that the move “will force you to uproot the life you have built with hard work.”
Employees across the U.S. and India now face uncertainty; the ban means pending green‑card applications will be frozen, and new ones will be rejected until the program is lifted, a move that could stall the growth of Indian talent pipelines.
Industry analysts warn that firms may pivot to alternative hiring models, such as contract work or local hires, to mitigate the sudden loss of access to highly skilled Indian professionals.
The U.S. government said it will review the policy in 90 days, but no timeline for lifting the suspension has been set, leaving thousands of workers in limbo.