US suspends Microsoft, Infosys, Wipro, HCL and other tech firms from labour programme: ‘Stop defrauding American worker’

The US Department of Labor on Thursday (October 8) suspended several major technology companies, including Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe, from the Permanent Labour Certification Programme, in a move targeting the hiring of foreign workers.

US Labor Secretary Keith Sonderling announced the decision alongside Vice President JD Vance and the head of the US Anti-Fraud Task Force.

“I am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini,” Sonderling said.

He added that the Department of Labor was also suspending Microsoft and Adobe from the programme.

No new or pending applications

Under the decision, the US Labour Department will not accept new applications or process pending permanent labour certification applications involving the companies.

“ We will not accept any new or process any pending permanent labour certification applications involving these companies,” Sonderling said.

The Permanent Labour Certification Programme, commonly known as PERM, is a key route through which US employers seek labour certification for foreign workers who may subsequently qualify for employment-based permanent residency.

The latest move could have implications for technology companies that rely on overseas talent and seek to sponsor employees for permanent US residency.

US cites foreign-worker numbers

Sonderling said the companies had collectively sought millions of foreign workers over the past 17 years.

“Since 2009, just these companies alone have requested almost three million foreign workers. They've received over 230,000 H-1B visa approvals and over 100,000 permanent labour certifications,” he said.

The labour secretary accused the companies of taking jobs away from American workers.

“That's hundreds of thousands of jobs that were taken from American workers,” Sonderling said.

The announcement comes as the Trump administration has intensified scrutiny of US immigration programmes and the use of foreign workers by American companies.

Major IT firms affected

The companies named by Sonderling include some of the largest Indian-origin technology and IT-services companies operating in the US, such as Infosys, Tata and Wipro, as well as Cognizant and HCL.

French IT-services giant Capgemini was also included in the suspension. Microsoft and Adobe were separately named by the labour secretary.

The decision puts the companies' new and pending permanent labour certification applications on hold, although the announcement cited in the statement did not provide further details on the duration of the suspension or whether the companies could challenge the action.

The move is likely to be closely watched by Indian technology professionals in the US, particularly those navigating the H-1B and employment-based green-card process.

(With PTI inputs)

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