The Trump administration has suspended Microsoft and major Indian IT companies including Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Cognizant from the US Permanent Labor Certification (PERM) programme, a key step in the employment-based green-card process. The announcement was made on October 8 by Vice President JD Vance, who accused these firms of abusing the system to replace American workers with cheaper foreign labor, according to livemint.com.
PERM is a US Department of Labor process where employers seek certification to permanently employ foreign workers by identifying a full-time job, establishing its requirements, and obtaining a prevailing wage determination. After recruitment efforts, the employer files a PERM application for review. The Trump administration's move targets companies it says have misused the programme to undercut US employees. Vice President Vance stated the action is part of a broader crackdown on skilled foreign labor and immigration programmes.
The suspension affects some of the largest technology and IT services companies, many of which have relied heavily on foreign talent for their US operations. The move signals increased scrutiny of foreign labor programmes amid ongoing political debates about immigration and labor protections. The affected companies will face challenges in sponsoring foreign workers for permanent residency, potentially impacting their US workforce strategies and hiring practices.
The Trump administration's announcement on October 8 marks a significant tightening of immigration enforcement related to skilled foreign workers. The Department of Labor will now review PERM applications from the suspended firms under heightened scrutiny, affecting thousands of foreign employees seeking green cards through these companies.