H1B Visa Latest Update: US Suspends PERM Green Card Sponsorship for Microsoft, TCS, and 6 Major IT Tech Giants

There is a suspension of PERM application process for eight leading technology and IT services companies in the US by the Department of Labor (DOL). Microsoft, Adobe, Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Cognizant, and Capgemini are some of the companies that have been refused H1B visas under this rule.

This H1B Visa ban will put a freeze on new and pending Green Card labor filings, stated the US Labor Secretary Keith Sonderling along with Vice President JD Vance on October 8th 2026.

This does not affect non-immigrant status, but the decision directly impacts Indian companies affected by US H-1 B ban policies and overall foreign workforce planning.

What does the US PERM Green Card Freeze Mean for Tech Companies?

The regulation by the Department of Labor is directed at the PERM program. It is a mandatory first step that the employer has to go through to show that there are no qualified local candidates before he/she sponsors foreign workers for permanent residency (EB-2 and EB-3 visas).

Scope of the H1-B Latest Update by the US DOL

• There will be an immediate halt. The DOL will neither accept new PERM applications nor process pending filings for the eight named corporations.

• Non-Immigrant Visas shall remain unchanged. Employees who have obtained H-1B visas at these firms will keep their legal status and right to work. Visa suspension will affect only green card labor sponsorship.

• Concerning the effect of the administrative level, large-scale IT service providers and technology companies such as Microsoft and Adobe should refrain from introducing any green card programs until federal compliance is achieved.

List of 8 Tech Companies Directly Affected by H1-B Visa New Guidelines

Why US Government Targets PERM Sponsorship in Recent H1B Visa News

When the briefing was done with the US officials, there were issues raised about the hiring process and displacement of domestic labor.

According to the Labor Secretary, Keith Sonderling, the eight suspended organizations have been seeking more than two million foreign workers since 2009. And all these companies secured over 23,000 H-1B visa approvals and 100000 permanent labor certifications. 

Vice President Vance further emphasised that corporations must first prioritise domestic recruitment by stating, "We want you to continue to grow and to employ a lot of people, but we want you to employ American workers."

Future Implications for Foreign Workers and Corporates

The current news around a potential US Visa ban causes concern. Industry groups note that major IT firms have already shifted toward local US hiring in recent years. 

Nasscom pointed out that while skilled mobility and immigration processes play different roles, it is important to note that companies continue to cut their dependence on visas. 

For the concerned professionals, sustaining the current H-1B extension process is an option, but moving to green card applications would depend on how the law is resolved.