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US suspends major Indian IT firms from green card employment program

The United States Department of Labor has suspended several leading Indian information technology companies, including Infosys, TCS, Wipro, and HCL, from permanent residency sponsorship programs. The action follows allegations of misuse of employment-based green card procedures.

LSN India · 8 October 2026

US suspends major Indian IT firms from green card employment program

Major Indian technology services companies face restrictions on sponsoring foreign workers for permanent US residency following regulatory action by the Department of Labor. Infosys, Tata Consultancy Services, Wipro, and HCL Technologies are among the firms suspended from permanent employment-based immigration programs, commonly known as perm programs.

The suspension stems from investigations into alleged abuse of procedures governing permanent job placements for foreign nationals seeking green cards. US labor authorities cited improper use of these programs as grounds for the enforcement action, which effectively halts these companies' ability to sponsor workers for long-term US residency through established immigration channels.

The move reflects heightened scrutiny of Indian IT services firms operating in the United States, which have long been major users of employment-based immigration pathways. These programs allow employers to hire foreign workers when they demonstrate insufficient domestic labor availability, a process that has drawn increased regulatory attention in recent years.

The suspension carries significant implications for Indian technology companies that rely heavily on deploying skilled workers to US client sites. Major IT services firms derive substantial revenue from US operations and have traditionally used green card sponsorship as a tool for talent retention and client service delivery.