US Suspension of PERM Filings by Major IT Firms

Context

The US Department of Labor suspended several major technology and IT-services firms, including Cognizant, Infosys, TCS, Wipro, HCL and Capgemini, from the Permanent Labor Certification (PERM) programme. Microsoft and Adobe were also covered.

About the Action

• Effect: The affected firms cannot file new PERM applications; pending applications are also not being processed during the suspension.
• Reason Cited: Alleged immigration fraud, wage undercutting and displacement of American workers.
• Scope: The action concerns PERM-based Green Card sponsorship, not all employment of H-1B visa holders.

About Permanent Labor Certification (PERM)

• Nodal Agency: US Department of Labor.
• Purpose: A key first step for employers sponsoring foreign workers for employment-based permanent residency, or a Green Card.
• Core Test: The employer must establish that no qualified, willing and available US worker is available for the job, and that hiring a foreign worker will not adversely affect US workers’ wages and working conditions.

Key Requirements

• Permanent Job: The offer must be for a genuine, full-time and permanent position.
• Prevailing Wage: The employer must obtain a wage determination to ensure payment at the applicable local wage level.
• Domestic Recruitment: The employer must advertise the vacancy and undertake prescribed recruitment steps in the US.
• Employer Conditions: The employer must have a valid Federal Employer Identification Number and a US work location.

PERM vs H-1B

• PERM: Relates to employer-sponsored permanent residence.
• H-1B: A temporary non-immigrant visa for skilled employment.

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