Infosys, Tata, Wipro, Microsoft, Adobe Suspended From US PERM Programme Over Visa Fraud Claims

The Donald Trump administration has suspended Microsoft, Adobe and major IT outsourcing firms including Infosys, Tata, Wipro, HCL, Cognizant and Capgemini from the US Department of Labour’s Permanent Labour Certification (PERM) programme, escalating its crackdown on alleged abuse of foreign-worker visa programmes.

US Vice President JD Vance and Labour Secretary Keith Sonderling announced the action on Thursday, saying the companies had used immigration programmes in ways that undermined American workers. The administration said it would stop accepting new and processing pending PERM applications involving the affected companies.

PERM is a key step for employers seeking to sponsor eligible foreign workers for employment-based green cards. Under the process, companies generally have to establish that there are no qualified, willing and available US workers for a particular position.

The latest action therefore affects the permanent residency pathway and does not automatically cancel H-1B visas held by employees.

What US Officials Have Said

Announcing the decision, Vance singled out Microsoft, alleging that the company had laid off American workers while continuing to use H-1B workers.

"There has been no company in the United States, unfortunately, that has abused this system more than Microsoft," he said.

Labour Secretary Sonderling said the Labour Department was suspending several major IT outsourcing companies from the programme.

"I am hereby suspending from the Permanent Labor Certification Program some of the largest IT outsourcing firms in the world — Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini — and also, due to multiple active federal investigations, the Department of Labor is suspending Microsoft and Adobe from the program," he said.

Vance also argued that H-1B workers were being paid less than American employees in comparable roles. He said, “If you are working as an H-1B visa in the United States of America, you’re earning $20,000 less than an American citizen hired in the same position.”

He further claimed that workers brought in by foreign outsourcing companies earned $48,000 less than American workers in similar positions.

Meanwhile, people (possibly Americans) on social media questioned why Amazon was not among the companies named, with some users alleging that the company also employs H-1B workers and has carried out layoffs

Why Indian IT Companies Are In Focus

The move has particular significance for Indian technology companies because Infosys, TCS, Wipro and HCL have large US operations and rely on skilled-worker immigration programmes.

According to Sonderling, the companies named by the administration had collectively sought almost three million foreign workers since 2009, receiving more than 230,000 H-1B approvals and over 100,000 permanent labour certifications.

The figures and the administration’s claims about the effect on American employment are allegations that form part of the ongoing crackdown.

For Indian workers, the immediate concern is the green-card pipeline. The PERM suspension does not itself terminate an H-1B worker’s legal status, but pending or future permanent residency applications could face disruption depending on the stage of an individual case.

The administration is also investigating nine universities, including Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, Arizona State and MIT, over alleged misuse of visa programmes.

"I am announcing a historic investigation into the J-1 visa fraud involving nine major American universities — Pit, Yale, Harvard, Stanford, Brown, UC Davis, Caltech, Arizona State, and MIT. Subpoenas have been served; investigations are underway," US Labour Inspector General Anthony D'Esposito said.

The Trump administration has signalled that the crackdown will extend beyond the companies announced on Thursday, with Vance saying the government wants US companies to expand but hire more American workers.