What is PERM? Why Trump suspended Microsoft and Indian IT firms from green-card programme
US Suspends PERM Filings for Major Technology Companies
Theindiapostdaily.com – What is PERM Why Trump suspended access to the programme is now a pressing question for foreign technology professionals pursuing employment-based green cards in the United States. The Trump administration has halted new PERM applications and paused work on pending cases involving Microsoft, Adobe and several large IT services companies.
The affected employers include Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. The decision could delay the permanent-residency plans of workers whose employers rely on the Permanent Labor Certification process.
Vice President JD Vance announced the move on Thursday, October 8, describing it as part of the administration’s effort to address alleged misuse of foreign-worker programmes. Officials argue that some companies have hired overseas talent while cutting American jobs or overlooking available US workers.
What Is PERM?
PERM stands for Permanent Labor Certification. Managed by the US Department of Labor, it is an employer-led process often required before a company can sponsor a foreign employee for an employment-based green card.
What is PERM Why Trump took action against selected employers comes down to the programme’s central purpose: verifying that a qualified, willing and available US worker cannot be found for a permanent position. Employers must also show that employing a foreign national will not lower pay or worsen working conditions for comparable American workers.
PERM certification does not itself grant a green card. Instead, it is commonly an early step before an employer files the next immigration petition. Visa availability and other immigration requirements can still affect when a worker receives permanent residence.
How the PERM Process Usually Works
Employers generally begin by seeking a prevailing wage determination from the Department of Labor. This establishes the appropriate wage for the role based on the occupation and the location of the job.
The employer must then conduct recruitment for the permanent, full-time role. If no qualified and available US worker is identified, the company may submit a PERM application. Certification is issued only after the Department of Labor determines that the relevant requirements have been met.
Not every employment-based green-card category requires PERM. However, for many foreign professionals, it is an important link between temporary US employment and a possible route to permanent residency.
Why the Administration Targeted These Companies
The administration alleges that the companies involved have used foreign labour to replace American workers at lower cost. Vance singled out Microsoft, saying the company had laid off thousands of US employees while receiving thousands of H-1B visas and green cards.
“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” Vance said.
Vance also described H-1B employees as “foreign indentured servants,” arguing that workers may be heavily dependent on sponsoring employers because of their immigration status. That dependence can make changing jobs more difficult for some employees.
The suspension creates uncertainty for workers already waiting for a decision as well as those preparing new applications. For affected employees, the issue is not only continued work authorisation but also whether their pathway to an employment-based green card can move forward.
PERM and H-1B Are Not the Same
PERM and the H-1B programme serve different roles in US immigration. H-1B is a temporary work visa for eligible specialty occupations and generally allows qualifying professionals to work in the United States for up to six years, subject to applicable rules.
PERM is a labour-certification process connected to a permanent role, rather than a temporary visa. A worker may hold H-1B status while an employer pursues PERM, but the two processes have separate requirements and purposes.
Frequently Asked Questions
Who is affected by the PERM suspension?
The action applies to Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. It affects new applications and, for specified companies, applications already awaiting review.
Does a PERM pause automatically cancel an H-1B visa?
No. PERM is separate from H-1B status. Workers should review their individual immigration situation and employer guidance because a paused green-card process may still affect longer-term plans.
Can an employee file a PERM application independently?
In most cases, no. PERM is employer-led, meaning the sponsoring company must define the permanent role, complete recruitment requirements and submit the application.
Why does the question “What is PERM Why Trump” matter to Indian IT workers?
Many Indian technology professionals work for companies included in the suspension and use employer sponsorship as part of their green-card plans. A pause in PERM processing may therefore create delays and uncertainty for affected employees and their families.