The United States has suspended eight technology companies from the Permanent Labour Certification programme, a key step in the employment-based green card process.

PERM certification is usually the first step an employer takes when sponsoring a worker for a green card under the EB-2 and EB-3 categories. The employer must show that no qualified American worker is available for the position.

The Department of Labour has stopped accepting new PERM applications and processing pending ones involving Microsoft, Adobe, Infosys, TCS, Cognizant, Wipro, HCL and Capgemini. It cited alleged fraud and a push to hire more American workers.

PERM is separate from the H-1B visa programme. The suspension does not affect the validity of existing H-1B visas, but it can delay the permanent residency process of eligible employees.

India’s MEA said the suspension does not affect existing H-1B holders but could affect green card timelines. The announcement did not say every pending application would be rejected.