United States Department of Labor halted PERM green‑card applications for eight major Indian technology firms on Friday, citing an ongoing investigation into the companies’ hiring practices. The suspension comes after the U.S. Office of Immigration Review flagged potential compliance issues in the firms’ PERM filings.
TCS, whose U.S. workforce numbers 32,000‑33,000, said the pause will not derail its client engagements. CEO K Krithivasan explained that employees typically cycle between onsite and offshore roles, and that permanent residency has never been a core part of the company’s strategy. Microsoft, which filed about 6,000 H‑1B petitions last fiscal year, noted that 80% of those were extensions or status changes, not fresh hires.
The move may force skilled H‑1B workers to seek employment with companies outside the suspension, sparking a potential exodus. An affected employee could transfer to another tech firm to keep their green‑card application on track, while recruiters warn that joining a suspended company might jeopardise future residency prospects.
Legal experts are already calling the action unlawful. Retired Cornell law professor Stephen Yale‑Loehr said the Department of Labor failed to provide due‑process hearings before suspending applications, and that companies will likely sue. A spokesman for the affected firms confirmed plans to file suit within the next week.
Industry observers suggest the suspension could accelerate the relocation of high‑value U.S. tech work to India’s growing global capability centres. Former CEOs of HCL Technologies and Tech Mahindra highlighted the opportunity for India to attract back experienced talent.
Investors reacted with a 4% uptick in the stocks of the suspended firms, indicating market confidence that the companies can navigate the legal and operational hurdles. The next key development will be the filing of the first lawsuit, expected to be announced by the end of next month.