US freezes Microsoft and tech giants’ PERM processing: What it means for Indian workers

US President Donald Trump awarded Satya Nadella the National Medal of Technology and Innovation on Thursday (Oct 8). The same day, his administration suspended Microsoft from a programme that helps foreign employees obtain permanent US residency. Seven other technology companies are affected, and Indian professionals are asking how far the action reaches.

What does the suspension mean?

The suspension covers PERM, the labour-certification process, and does not automatically cancel existing work authorisation. Immigration law firm Reddy Neumann Brown distinguishes it from a blanket H-1B ban. Temporary work permission and permanent residency are separate, and workers must still meet the conditions of their current status.

What are the implications?

The eight companies are Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL Technologies and Capgemini. Labour Secretary Keith Sonderling said the department would neither accept new PERM applications nor process pending ones involving them, citing active federal investigations. PERM requires employers to show that qualified US workers are unavailable and that hiring a foreign worker will not harm comparable US workers' wages. Certification does not itself grant a green card.

Gauging the risk

Employees nearing the six-year H-1B limit. Extensions beyond it can depend on how long a labour-certification application or immigrant petition has been filed; State Department guidance describes one-year extensions after 365 days. Previously certified PERMs and approved I-140 petitions were not automatically revoked. The law firm advises assessing one's immigration stage and deadlines before making career decisions, including job changes.

Did Microsoft replaced American workers?

Not on their own. Vice President JD Vance said Microsoft laid off 6,000 American workers while benefiting from 6,300 H-1B visas and nearly 3,000 green cards. Microsoft says about 80% of its roughly 6,000 H-1B filings last fiscal year were extensions or status changes for existing employees. It says the remaining filings involved people already in the US, about 1% of its US workforce, and disputes underpaying H-1B workers. Layoffs, visa filings and green-card approvals are different measures, and the allegations remain under investigation.

Nasscom says Indian technology firms have expanded US hiring and reduced H-1B reliance, and that few employees move from H-1B to permanent residency through PERM. This is the industry body's assessment, and it gives no count of workers with pending applications caught by the freeze. Historical totals since 2009 cannot answer that either.