US green card freeze: Why tech workers may face a longer road to residency

Dubai: The US Department of Labor has suspended eight technology and IT services companies from the Permanent Labor Certification Program, known as PERM, on October 8. Vice President JD Vance and Labor Secretary Keith Sonderling announced the decision in Washington.

The companies are Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL Technologies and Capgemini. The department said that it will accept no new PERM applications from the eight companies. And would also halt processing of their pending cases while investigations continue. The suspension runs indefinitely.

US officials have cited wage suppression and worker displacement behind this move. Vance accused Microsoft of benefiting heavily from PERM and H-1B visas last year while it laid off thousands of American workers. He told employers the administration wants them to keep growing and hiring, but to hire Americans. 

PERM matters because it is the first step on the most common employer-sponsored green card route. An employer must show it found no qualified US worker for the role before it can file an immigrant petition.

What this means for Indian IT firms

Indian tech companies like Infosys and Wipro saw their American depositary receipts fall roughly 3 per cent in Thursday’s US trading. However, Friday morning, the stocks were among the top performers on the India index, as traders shrugged off the risks. Focus shifted towards the financial performance of TCS which reported a 15 per cent jump in net profits.

Nasscom, India’s IT industry body, calls the suspension temporary and limited to one immigration pathway. It argues that “immigration and skilled talent mobility are two distinct issues.”

The body observes that Indian technology companies have cut their reliance on H-1B visas over the years while expanding local hiring in the US. “Consequently, the number of employees transitioning from H-1B visas to permanent residency through the PERM process is also relatively limited,” Nasscom says.

What it means for techies heading to the US

But it is the tech employees who will have to carry the burden. Workers who have not started PERM may face an immediate stall, because their employer cannot file a new application. Staff with pending cases face delays, and the administration has yet to explain how it will treat them.

Indians account for a large share of H-1B beneficiaries and already face long backlogs in employment-based green card categories. A freeze at a sponsoring employer adds uncertainty to a wait that already spans years. 

Candidates weighing offers from any of the eight companies should ask about green card sponsorship before signing. Request written answers on when the company would file PERM and what happens to your case if the suspension continues. Offers from firms outside the list face no direct PERM suspension as of now.

What should techies in the US do?

Tech employees will have to confirm with their HRs whether their employer has filed for PERM or has a pending case. or has already secured certification. Ask the company’s immigration counsel how the suspension affects your priority date. Keep copies of every filing, receipt and approval notice.

For now, its the employees of these 8 forms that are exposed. However, workers elsewhere should also take note as the enforcement push could affect employers well beyond the companies in the announcement.