Why US has suspended Indian IT firms Cognizant, TCS, Wipro, HCL from Green Card filings

The United States government has placed a freeze on entry of skilled foreign workers from major Indian IT firms into the country, citing allegations of fraud and displacement of American workers. These firms, including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, are being barred from the Permanent Labor Certification Program (PERM), a key pathway for foreign workers seeking permanent residency in the US through sponsorship by American employers.

The suspension, announced by US Secretary of Labor Keith Sonderling, is part of a broader crackdown on foreign workers that has intensified under the Trump administration. Sonderling stated that the move aims to end the fraud that has fueled reliance on foreign labor and ensure American businesses prioritize hiring American workers.

The PERM program requires employers to submit labor certification applications on behalf of foreign workers, demonstrating that hiring the worker will not displace American workers or adversely affect wages. However, the government has accused these firms of fraudulent filings, wage undercutting and other violations. This action is seen as a significant blow for Indian professionals looking to work at these companies in the US, as the PERM program is heavily relied upon by Indian IT professionals for obtaining permanent residency.