H-1B vs PERM explained: What the US suspension means for Indian IT workers 

The US immigration process has come under fresh scrutiny after Vice President JD Vance criticised companies for relying on foreign workers, while the Trump administration suspended eight technology companies from the PERM labour certification programme. 

The October 8, announcement has raised concerns among Indian IT professionals who depend on employer sponsorship to secure permanent residency in the United States. The companies named were Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini. 

Vance accused companies of using foreign workers to replace laid-off Americans and suppress wages. He described H-1B workers as “foreign indentured servants”, arguing that their dependence on employers could leave them vulnerable to exploitation. 

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The administration's action, however, targets the PERM programme rather than constituting a blanket suspension of H-1B visas. The distinction matters because the H-1B visa allows eligible foreign professionals to work temporarily in the US, while PERM is a key step in many employer-sponsored Green Card applications. 

For Indian professionals, understanding the two processes is particularly important given the long waits for employment-based permanent residency. 

What is an H-1B visa, and who qualifies? 

The H-1B is a temporary US work visa commonly used by technology companies, consulting firms, financial institutions, research organisations and other employers seeking professionals with specialised skills. 

It is not restricted to IT workers. Eligible roles can also exist in engineering, healthcare, biotechnology, scientific research and certain business specialisations. 

What are the eligibility conditions? 

1. A qualifying specialty occupation: The job must satisfy the legal requirements for a specialty occupation, generally involving specialised knowledge and a bachelor's degree or equivalent in a directly related specific specialty. 

2. Relevant educational qualifications: The applicant generally needs a US bachelor's degree or higher in the relevant specialty, or a foreign equivalent. In appropriate circumstances, qualifying education, training and progressively responsible experience may establish equivalence. 

3. A US employer willing to sponsor the worker: An individual generally cannot obtain an H-1B simply by applying independently. A qualifying employer must petition for the worker and provide evidence supporting the job and the applicant's eligibility. 

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4. Labour Condition Application: Before filing the H-1B petition, the employer generally must obtain certification of an LCA from the Department of Labor. The employer must meet applicable wage and working-condition requirements, including paying at least the higher of the prevailing wage or the actual wage paid to comparable employees. 

5. Registration and selection, where applicable: Most new H-1B applicants subject to the annual cap must go through the registration and selection process before the employer can file the cap-subject petition. Certain employers and petitions qualify for exemptions. 

The regular annual cap is 65,000, with an additional 20,000 places under the US advanced-degree exemption for qualifying graduates of US institutions. 

How long can an H-1B holder stay in the US? 

The usual maximum is six years, often in an initial period of up to three years followed by an extension of up to three years. Exceptions can allow further extensions in qualifying Green Card cases, including certain situations involving lengthy employment-based immigration processing. 

An H-1B is employer- and employment-specific. Changing jobs generally requires the new employer to file the appropriate petition, although eligible workers may be able to start with a new employer under H-1B portability rules. 

What is PERM, and why is it important for a Green Card? 

PERM stands for Program Electronic Review Management. It is the Department of Labor's process for permanent labour certification. 

In most standard employer-sponsored EB-2 and EB-3 cases, PERM is a required step before the employer can file Form I-140, the immigrant petition for the foreign worker. 

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The central question is whether the employer has met the applicable recruitment and labour-market requirements and whether employing the foreign worker would adversely affect the wages and working conditions of similarly employed US workers. 

What are the conditions for PERM? 

1. A permanent, full-time job offer: The employer must offer a genuine permanent, full-time position. PERM is not designed to certify a temporary assignment. 

2. A qualifying US employer: The employer must meet the programme's requirements, including having a valid federal Employer Identification Number and a US location to which US workers can be referred. 

3. Prevailing wage determination: Before filing the PERM application, the employer generally must obtain a prevailing wage determination from the Department of Labor. This establishes the applicable wage benchmark for the position and location. 

4. Recruitment of US workers: The employer must conduct the recruitment required for the occupation. For many professional positions, this includes specified recruitment steps beyond the basic requirements for non-professional occupations. 

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5. Documenting recruitment results: The employer must document the recruitment process and lawful, job-related reasons for rejecting US applicants. PERM is not a guarantee that a foreign worker will be approved merely because the employer prefers that person. 

6. Filing Form ETA-9089: After meeting the applicable requirements, the employer submits the PERM application to the Department of Labor. 

These are employer-driven requirements. The foreign worker cannot independently complete PERM in place of the sponsoring employer. 

How does PERM lead to a Green Card? 

• Employer sponsorship: The employer identifies a permanent job and establishes the position's requirements. 
• PERM labour certification: The employer obtains the prevailing wage determination, completes recruitment and files ETA-9089, where PERM is required. 
• Form I-140: The employer petitions for the worker under an eligible employment-based immigrant category. 
• Green Card application: The worker completes adjustment of status in the US or consular processing abroad when eligible and when an immigrant visa is available. 

This is the typical route for many PERM-based cases, but the steps and requirements vary. Some employment-based categories do not require PERM, including certain EB-1 cases and EB-2 National Interest Waiver cases. 

Important: A certified PERM application is not a Green Card, and an approved I-140 does not itself confer permanent residency. The worker must still meet the applicable immigration requirements and wait until an immigrant visa number is available. 

What does the US suspension mean for Indian IT workers? 

The administration's October 8 announcement has added uncertainty for employees of the eight affected companies who were planning to obtain permanent residency through employer sponsorship. 

The practical implications depend on the worker's individual case. 

1. Workers with pending PERM applications: The suspension prevents processing of the affected companies' pending applications while the restriction applies. 
2. Workers whose employers planned to start PERM: The named companies cannot file new applications under the programme during the suspension. 
3. Workers already on H-1B visas: The PERM suspension does not, by itself, cancel their H-1B status or work authorisation. 
4. Workers with approved I-140 petitions: The suspension does not automatically establish that every previously approved petition or priority date is cancelled. 
5. Workers approaching the H-1B limit: They may need individual legal advice about extensions and other options, particularly if their Green Card processing is delayed. 

The administration has said the suspension is intended to address alleged misuse of the programme and protect American workers. The allegations should not be treated as proof that every affected employer or foreign worker has violated immigration law. 

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The duration of the suspension and its ultimate impact on pending cases remain important questions. 

Why is the process particularly challenging for Indian nationals? 

The main difficulty is that PERM approval and Green Card availability are two different things. 

Employment-based immigration has annual numerical limits and per-country restrictions. India has substantial demand in employment-based categories, resulting in lengthy backlogs in categories such as EB-2 and EB-3. 

The process can therefore involve several separate waits: 

• Waiting for the employer to complete the PERM process. 
• Waiting for the I-140 petition to be adjudicated, if applicable. 
• Waiting for the applicant's priority date to become current under the relevant immigration rules. 
• Completing the final Green Card stage once eligible. 

The priority date is generally tied to the date the PERM application was properly filed when PERM is required. For categories that do not require PERM, a different filing date may establish the priority date.

The US government publishes monthly Visa Bulletins showing the relevant dates and visa availability. These dates can advance, remain unchanged or move backwards, so an approved petition does not guarantee that the worker can immediately receive a Green Card.

For employees affected by the latest suspension, the interruption at the PERM stage could add another complication to an already lengthy process. 

What about costs, fees and processing times? 

The costs and timelines differ because the two processes involve different agencies and stages.

Processing times can change significantly. The suspension also introduces uncertainty for applications involving the affected companies. Employers and workers should check current government fee schedules and processing-time information rather than relying on old estimates.

A further consideration is the US government's 2025 H-1B proclamation concerning a $100,000 payment requirement for certain H-1B petitions. Applicability depends on the proclamation's scope and exceptions, so employers and workers should verify whether it applies to their specific petition before budgeting or making immigration decisions. 

H-1B vs PERM: Which one should an Indian professional prioritise? 

The answer depends on the worker's current immigration status and long-term plans. 

• If you are seeking to work in the US: Focus on finding a qualifying employer, meeting H-1B eligibility requirements and understanding the registration or exemption rules. 
• If you are already on H-1B: Discuss the employer's Green Card sponsorship policy and likely timeline early, rather than assuming the company will automatically start PERM. 
• If your H-1B time is running out: Seek legal advice about extensions, portability, recapture of time spent outside the US and any applicable employment-based immigration provisions. 
• If you are waiting for a Green Card: Track your priority date and the Visa Bulletin. PERM or I-140 approval does not eliminate the backlog. 
• If your employer changes or your job changes significantly: Obtain advice before assuming that an existing labour certification or immigrant petition can be reused. 

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Can someone get a Green Card without an H-1B? 

Yes. H-1B status is not a universal prerequisite for employment-based permanent residency. Eligible applicants may pursue employer-sponsored or other Green Card categories from different immigration statuses, subject to the applicable rules. 

Does every Green Card require PERM? 

No. PERM is generally required for many EB-2 and EB-3 employer-sponsored cases, but exceptions exist. Certain EB-1 categories and the EB-2 National Interest Waiver route, for example, do not require PERM labour certification. 

Does the new suspension mean H-1B visas have been banned at the affected companies? 

The announcement specifically concerns the PERM programme. It does not amount to a blanket cancellation of H-1B visas or automatically terminate existing H-1B status. Workers should seek case-specific advice about any other restrictions that may apply. 

Can a worker simply switch employers to continue PERM? 

A new employer may be able to sponsor the worker through its own process, but a PERM application is tied to the sponsoring employer and specific job opportunity. Whether a priority date or other immigration benefit can be retained depends on the circumstances and applicable rules. 

(This is a general explainer, not individual immigration advice. The October 8 suspension is a developing matter; the precise effects on pending applications and previously approved immigration petitions should be verified against subsequent official guidance.)