US suspends eight major IT firms from permanent labour certification

The suspension affects some of India's largest information technology services companies and two multinational technology giants, signalling heightened scrutiny of hiring practices in the sector. The permanent labour certification programme, also known as green card sponsorship, allows US employers to hire foreign workers when qualified domestic candidates cannot be found.

The move reflects ongoing concerns in the United States regarding employment practices and wage standards in the technology sector. Regulators have increasingly focused on compliance issues and adherence to labour market requirements among companies participating in visa and permanent residency programmes.

For Indian IT firms, which have historically relied on the ability to place professionals in the US market, the suspension represents a material constraint on their workforce strategies. These companies collectively employ thousands of workers in the United States and have long utilised the permanent labour certification pathway to retain skilled professionals.

The suspension duration and specific compliance issues prompting the action were not immediately detailed. Industry observers expect the measure will prompt affected companies to review their hiring and labour certification practices to restore programme eligibility.