Infosys Sees No Significant Impact from PERM Program Amid Department of Labor H-1B Program Scrutiny

A Department of Labor suspension blocks new PERM applications and pauses pending cases for Infosys and other named companies. Infosys expects no material...

Key Takeaways
  • The Department of Labor paused new and pending PERM applications at named companies, including Infosys.
  • Infosys says the suspension will not materially affect operations, citing U.S. hiring and technology hubs.
  • The order does not end existing H-1B status, but green-card cases may be delayed for affected employees.

Infosys said October 10, 2026, that a U.S. suspension of new and pending labor-certification applications involving the company would not materially affect its operations. The pause covers the company alongside several technology and IT-services firms.

In a stock-exchange filing, Infosys said it would cooperate with government agencies seeking answers. The company’s assessment was direct:

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Infosys Sees No Significant Impact from PERM Program Amid Department of Labor H-1B Program Scrutiny
Infosys Sees No Significant Impact from PERM Program Amid Department of Labor H-1B Program Scrutiny

“We do not anticipate yesterday’s announcement of such suspension to have a material impact on the organisation.”

Infosys pointed to its investments in local hiring and U.S. technology operations. It said it remains committed to employees, clients and communities in the country, as well as compliance with applicable laws and regulations.

The decision affects an employment-based green-card step, not the temporary-worker visa status of existing employees. The distinction limits the immediate reach of the order, though it does not prevent delays for workers whose cases depend on labor certification.

The order pauses labor certification applications

Keith Sonderling, the U.S. secretary of labor, announced the suspension on October 8, 2026. The Department of Labor barred the named companies from filing new applications and stopped work on pending ones under the PERM program, short for Program Electronic Review Management.

Employers generally use this labor-certification stage when sponsoring foreign workers for U.S. permanent residence. A pause can therefore stall progress toward a green card even when a worker’s current temporary status continues.

The order does not itself cancel existing H-1B status. The H-1B program and employer-sponsored permanent residence are separate immigration processes, and the suspension applies to the latter’s labor-certification stage.

The covered companies include Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Cognizant, Microsoft, Adobe and Capgemini. They span Indian IT-services firms and major U.S. technology companies.

Sonderling tied the suspension to past hiring figures

Sonderling said the companies had collectively sought nearly 3 million foreign workers since 2009. He also cited more than 230,000 H-1B approvals and more than 100,000 permanent labor certifications.

He characterized those totals as jobs taken from U.S. workers. That is the administration’s stated rationale for the action.

“Since 2009, just these companies alone have requested almost 3 million foreign workers. They received over 230,000 H-1B visa approvals and over 100,000 permanent labor certifications — that’s hundreds of thousands of jobs that were taken from American workers.”

Vice President JD Vance offered a broader defense of the skilled-worker visa system at a press conference on visa fraud. He said the program should address roles that employers cannot fill with U.S. workers.

“The H-1B visa program is meant to allow companies to bring in really the best of the best from outside the United States of America for positions that are completely impossible to fill with American workers.”

The administration has alleged that some companies misused employment-visa programs and used foreign workers to replace or disadvantage American employees. The suspension applies to the companies named in the order.

Infosys points to U.S. hiring and technology hubs

Infosys said its U.S. workforce and technology and innovation hubs help explain why it expects limited business consequences. The company presented those investments as part of its local operating base, alongside its commitments to U.S. employees, clients and communities.

Its filing also said it welcomed the opportunity to work with the department and related agencies to answer questions. The statement did not change the order’s effect on applications already in process.

That distinction leaves a split between corporate operations and individual immigration timelines. Infosys says the suspension will not materially affect the organization, while affected employees may still have to wait for a stalled certification step.

Industry figures point to a limited share of certifications

Vineet Nayar, former chief executive of HCL Technologies, said Indian IT companies accounted for fewer than 1,400 of the 117,849 labor certifications issued in the United States in 2025. He put their share at less than 2% of the total.

“The direct impact may therefore be smaller than it first appears.”

Nasscom, the trade association representing India’s technology industry, said its member companies have reduced reliance on H-1B visas and expanded local hiring. Those trends, it said, limit the number of employees seeking permanent residence through the certification process.

Tata Consultancy Services also played down the likely effect, pointing to its U.S. hiring and local presence. Company statements have emphasized domestic workforces, while the government’s action still blocks new cases and pauses those already submitted.

Pending cases face delays even as operations continue

Employees with pending labor-certification cases at the named firms may see the first stage of their green-card applications delayed. That can push back later steps, including an employer’s immigrant petition and an adjustment-of-status filing.

The pause also affects people who were preparing to start the certification process. Existing H-1B status is not directly ended by this order, but a delayed green-card track can disrupt an employee’s planned route to permanent residence.

As of October 12, 2026, the suspension remained in effect for new and pending applications at the named companies. Infosys’s public position remained that the measure would not have a material impact on its organization.

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Priya Nair

Priya Nair is VisaVerge.com's Work Visa Correspondent, specializing in employment-based immigration — H-1B, L-1, O-1, TN, OPT, and the PERM and green-card process. She breaks down lottery odds, prevailing-wage rules, and employer obligations for the skilled professionals who navigate them every year. Priya's guides help workers and employers make confident, well-informed decisions about building a career in the United States.