On 8 October 2026, the US Labor Department suspended eight major employers from PERM, the programme that starts most employer-sponsored green cards. Five of them are TCS, Infosys, Wipro, HCL Technologies and Cognizant. The suspension is the latest and most visible in a run of US curbs on skilled-worker immigration over the past 13 months:
- a $100,000 payment on new H-1B petitions
- a lottery that now favours higher salaries
- a $4,000 fee on H-1B extensions at H-1B-heavy employers, and a proposed $103,265 fee on every cap-subject petition
- closer scrutiny of employers with recent layoffs
Together, these measures are changing how companies in US hire Global talent. Companies that can’t easily move talent to the US, or keep it there, are hiring it where it lives, as remote employees through an Employer of Record (EOR).
This article covers what the PERM suspension means, the H-1B changes around it, why they are pushing companies toward EOR and remote hiring, how the cost and timelines compare, what risks to watch, and how ready India is for the shift. All facts were checked on 13 October 2026, with sources at the end.
The PERM suspension: what happened on 8 October 2026
What PERM is. The Permanent Labor Certification (PERM) programme, run by the US Labor Department, is usually the first step in an employer-sponsored green card. The employer must show that no qualified, willing and available US worker can fill the role.
Who is suspended. Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini.
What it means. The Labor Department will neither accept new PERM applications from these eight employers nor process pending ones. Vice President JD Vance said the suspension will last “as long as needed” to change company behaviour, and officials pointed to ongoing federal investigations. Labor Secretary Keith Sonderling said that since 2009 these companies have sought about 3 million foreign workers, received over 230,000 H-1B approvals and obtained more than 100,000 permanent labor certifications.
What doesn’t change. The H-1B programme is not suspended. Existing H-1B visas and green cards already issued remain valid, and H-1B holders don’t need PERM to keep working.
Who is most exposed. Immigration lawyers say the people most at risk are H-1B holders at these companies who are nearing the six-year H-1B limit and haven’t yet started a green-card case.
How the industry responded. Nasscom said the number of employees moving from H-1B to permanent residency through PERM is “relatively limited”, and that Indian IT firms have “significantly reduced their dependence” on H-1B visas. TCS said its PERM applications were in single digits over the past two years. Indian IT shares rose the following day, helped by TCS’s quarterly results.
Why it matters for every employer. For many tech workers, a green card is the main reason to stay with a US employer. With that path closed at eight of the largest sponsors, and the administration openly aiming to change company behaviour, more workers will weigh moving home. Employers who want to keep them will need another way to do it.
The wider H-1B crackdown (Sept 2025 – Oct 2026)
| Date | What happened | Status |
|---|---|---|
| Sept 2025 | $100,000 payment imposed on new H-1B petitions for workers outside the US | Struck down in court (June 2026); appeal pending |
| Sept 2025 | Labor Department launches Project Firewall, an H-1B enforcement drive | Nearly 200 investigations so far |
| Jan 2026 | DHS finalises wage-weighted H-1B selection, replacing the random lottery | In effect from 27 Feb 2026 |
| Aug 2026 | DHS sends OMB a proposal to end the 60-day grace period for H-1B workers who lose their jobs | Under review; grace period still applies |
| 25 Aug 2026 | DHS proposes a $103,265 fee on every cap-subject petition, including F-1 students changing status | Proposed only |
| 9 Sept 2026 | $4,000 fee on H-1B extensions ($4,500 for L-1) for employers with 50+ US staff, more than half on H-1B or L-1 | In effect until 30 Sept 2027 |
| 18 Sept 2026 | New proclamation renews the $100,000 fee through 21 September 2027 | Blocked by a California court on 30 Sept 2026 |
| 18 Sept 2026 | Executive Order 14431 directs agencies to weigh an employer’s layoffs of US workers when reviewing H-1B petitions | In effect |
| 8 Oct 2026 | Labor Department suspends eight employers from PERM green-card sponsorship: Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL Technologies and Capgemini | In effect |
The H-1B programme itself has not been suspended, and existing visas remain valid. But every change in this table makes a new H-1B hire costlier, slower or less certain:
- Cost: the $100,000 fee is blocked for now, but the government keeps trying to reintroduce it. A separate $103,265 fee is proposed for every cap-subject petition.
- Certainty: wage-weighted selection gives each registration one to four entries depending on the salary level. Entry-level and early-career candidates, a large share of Indian applicants, now have lower odds.
- Scrutiny: Project Firewall investigations and Executive Order 14431 mean employers with recent layoffs in similar roles face closer review of new H-1B petitions.
- Path to permanence: the PERM suspension cuts off the usual green-card route at eight large employers. That matters most for H-1B workers approaching the six-year limit.
Why H-1B curbs push companies toward EOR and remote hiring
1. The cost gap has become impossible to ignore
Even before the new fees, an H-1B petition cost employers between $960 and $7,380 in USCIS filing fees, depending on company size, plus legal fees. Since 9 September 2026, employers with 50 or more US staff, more than half of them on H-1B or L-1 visas, also pay $4,000 on every H-1B extension. A $100,000 payment, or the proposed $103,265 fee, would add more than many companies spend on a year of an engineer’s salary in India.
By contrast, hiring the same engineer in India through an EOR has no visa cost at all. You pay the salary at Indian market rates, statutory contributions such as Provident Fund, and a predictable EOR fee: from $349 per employee per month with StratEdge Global, or $4,188 a year.
2. Timelines: months versus days
The H-1B calendar is rigid. Registration runs in March, petitions are filed from April to June, and the earliest start date is 1 October. A company that decides to hire in November may wait up to 11 months, and still not be selected.
An EOR hire in India can start within days. StratEdge onboards India hires in 48 hours once the candidate accepts.
3. Certainty: a lottery versus a contract
With weighted selection, a sponsored candidate is still not guaranteed a visa. With an EOR, there is no lottery. If you’ve found the right person, you can employ them.
4. Retention: keeping people you would otherwise lose
The new rules create a group of people companies don’t want to lose:
- H-1B workers who can’t get a green card at a suspended employer
- workers near the six-year limit
- laid-off workers with only 60 days to find a new sponsor, a grace period DHS has moved to eliminate
- graduates who miss the lottery
Many of them are moving home. An EOR lets a company keep these people on the team as remote employees in India, on a compliant Indian contract, without visas.
5. The talent supply is moving to India anyway
The reverse brain drain gives EOR hiring a deeper talent pool:
- Returnees: Bengaluru talent firm Xpheno estimates about 15,100 Indian professionals returned from abroad in 2025, up from 9,800 in 2024. Another 7,300 or so returned by August 2026.
- Senior hires: India’s top 125 global capability centres hired about 7,000 senior tech professionals in the 12 months to August 2026, about 2,800 of them returnees from the US.
- Intent: in a 2025 Blind survey of 2,089 Indian professionals on US work visas, 45% said they would return to India if they lost their job.
For employers, this means US-trained engineers with US work experience are increasingly available in India, at Indian cost, and open to remote roles with global companies.
H-1B vs EOR vs your own entity: how the options compare
| H-1B sponsorship | Own Indian entity or GCC | EOR in India | |
|---|---|---|---|
| Where the employee works | United States | India | India (remote) |
| Visa needed | Yes, subject to cap and selection | No | No |
| Time to first hire | Up to 11 months (1 October start) | 3–6 months to set up the entity | Days (48 hours with StratEdge) |
| Government and visa fees | $960–$7,380 filing, plus legal; $4,000 on extensions for H-1B-heavy employers; proposed $103,265 fee | Incorporation, accounting and compliance costs | None |
| Ongoing provider fee | — | Payroll and compliance providers | From $349 per employee/month |
| Certainty of hiring | Not guaranteed (weighted selection) | High once the entity exists | High |
| Best for | Roles that must be in the US | Large, permanent teams (50+) | One to a few dozen hires, fast |
For most companies hiring fewer than 50 people in India, EOR is now the fastest and lowest-risk route. Companies building very large teams often start with an EOR and move to their own entity or GCC later. See EOR vs entity in India for the full comparison.
What this means for the EOR and remote-hiring market
Demand shifts from “bring them here” to “hire them there”
Companies that relied on H-1B pipelines, especially startups and mid-sized firms without immigration teams, are the most likely to switch to remote hiring. Indian IT services firms have been preparing for years. Nasscom says they have “significantly reduced their dependence” on H-1B visas, and TCS says its PERM applications were in single digits over the past two years. Smaller employers have no such buffer, so EOR becomes their practical alternative.
India becomes the default remote-hiring market
India already has 2,117 GCCs employing about 2.36 million people, with about $98.4 billion in revenue in FY26 (Nasscom–Zinnov). That gives companies a proven talent market, supporting infrastructure and a large pool of experienced engineers. EOR lets companies too small for a GCC access the same talent.
India is booming in AI, according to Stanford
Stanford University’s AI Index, the most widely cited annual benchmark of AI progress, shows why companies are looking to India for AI and engineering work:
- No. 1 in AI skills. In the 2026 AI Index, India ranks first in the world for relative AI skill penetration. AI skills appear on Indian professionals’ LinkedIn profiles at about three times the global average.
- Third in global AI vibrancy. India rose to third place in Stanford’s Global AI Vibrancy ranking, up from fourth, on the strength of its research output, talent pool and AI infrastructure.
- A growing open-source force. India accounts for 5.2% of open-source AI projects on GitHub with at least 10 stars, and its share is still rising.
- Women lead. Indian women’s AI skill penetration rate is 1.9, higher than that of women in the US (1.71).
Stanford also flags gaps. India holds just 0.4% of AI patents, for example. But on talent, India is now one of the deepest AI pools in the world, and its GCCs already hold nearly 28% of the global GCC AI talent pool. For companies that can’t bring AI engineers to the US, hiring them in India is no longer a compromise.
Compliance matters more, not less
Remote hiring through an EOR moves the compliance burden from US immigration law to Indian employment law. In 2026 that includes:
- India’s four Labour Codes, in force from 21 November 2025. The 50% wage rule changes how salaries are structured.
- The new PF wage ceiling of ₹25,000 a month, from 17 September 2026.
- The Income-tax Act 2025, in force from 1 April 2026.
- Final settlement within two working days of an exit.
Companies should choose an EOR that employs staff through its own Indian entity and handles these rules in-house. See our guide to payroll in India in 2026.
Risks to manage
- Misclassification. Engaging full-time remote workers as “contractors” to save cost can trigger back-payment of PF and penalties in India. An EOR employs them properly.
- Permanent establishment. If remote staff in India sign contracts or generate revenue for your company there, it may create a taxable presence. Structure roles carefully and take tax advice.
- IP and data. Make sure your EOR agreement assigns all intellectual property to your company and covers data protection.
- Pay expectations. Returnees often accept lower pay than in the US, but strong AI, data and product talent still commands a premium in India. Budget realistically.
A practical playbook: moving from H-1B to remote hiring
- Map exposure. List employees on H-1B, those near the six-year limit, pending PERM cases and planned H-1B hires. Check whether recent layoffs in similar roles could draw extra scrutiny on new petitions.
- Offer a remote option. For people who may have to leave the US, offer continued employment from India through an EOR, with the same role and team.
- Redirect new hiring. For roles that don’t need to be in the US, hire in India through an EOR instead of entering the H-1B selection.
- Use returnees. Recruit US-experienced engineers who have moved back to India.
- Review the model at scale. Once your India team passes about 50 people, compare EOR with setting up your own entity.
How StratEdge Global helps
StratEdge Global is one partner and one platform for hiring in India and 15+ countries, from recruitment to exit:
- No visas, no entity. We employ your team through our India employing entity, StratGrid Private Limited, and onboard India hires in 48 hours.
- Keep the people you’d otherwise lose. We move H-1B employees who return to India, including those whose green-card path has stalled, onto a compliant Indian contract, so they stay on your team.
- No candidate yet? We find one. Our in-house recruitment team, HireEdge, sources experienced engineers, including returnees from the US.
- Real-time visibility. Our EmpleYor platform shows you each hire’s cost, onboarding, leave and attendance live, so your remote team works like your own.
- Simple pricing. From $349 per employee per month with health insurance included, no onboarding fee and month-to-month terms.
Book a free call, see StratEdge pricing, or read how to hire developers in India without an entity.
FAQ
What is the PERM suspension and who does it affect?
On 8 October 2026, the US Labor Department suspended eight employers from PERM, the first step in most employer-sponsored green cards: Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL Technologies and Capgemini. New and pending PERM applications from these employers won’t be processed. H-1B visas and green cards already issued are not affected.
How do the 2026 H-1B changes affect remote hiring?
They make bringing foreign talent to the US costlier, slower and less certain. That pushes companies to hire talent where it lives, as remote employees, often through an Employer of Record in countries such as India.
Can a company keep an H-1B employee who has to leave the US?
Yes. If the employee moves back to India, the company can keep employing them remotely through an EOR, which becomes the legal employer in India and handles payroll, PF, tax and benefits. No visa is needed.
Is hiring through an EOR in India cheaper than sponsoring an H-1B?
Usually, yes. An EOR has no visa or government petition fees. You pay an Indian market salary, statutory contributions and a monthly fee, from $349 per employee with StratEdge Global. H-1B sponsorship involves US salaries, filing and legal fees, and potentially six-figure fees if the proposed rules take effect.
How fast can I hire in India through an EOR?
Typically within days. StratEdge Global onboards India hires in 48 hours. An H-1B hire selected in the annual cap can start no earlier than 1 October.
Is India a good place to hire AI talent?
Yes. Stanford’s 2026 AI Index ranks India first in the world for AI skill penetration, at about three times the global average, and Stanford’s Global AI Vibrancy ranking places India third. Companies can hire this talent remotely through an Employer of Record without visas.
Is the $100,000 H-1B fee in effect?
Courts have blocked it. A Massachusetts federal court vacated it in June 2026, and after it was renewed in September 2026, a California federal court blocked enforcement on 30 September 2026. Appeals and further litigation are expected.
Do layoffs affect a company’s H-1B petitions?
Yes, increasingly. Executive Order 14431, signed on 18 September 2026, directs US agencies to weigh an employer’s layoffs of US workers when reviewing H-1B petitions. The Labor Department’s Project Firewall has also opened nearly 200 H-1B investigations.
Has the US suspended the H-1B programme?
No. On 8 October 2026, the Labor Department suspended eight companies from PERM green-card sponsorship, which is a separate programme. H-1B visas remain valid.
Sources
- Forbes, Judge Strikes Down Latest Version Of $100,000 H-1B Immigration Fee, 1 October 2026: forbes.com
- Mintz, Presidential Proclamation Extends $100K H-1B Fee, 23 September 2026: mintz.com
- National Law Review, DHS Proposes $103,265 Fee for All H-1B Cap-Subject Petitions, 25 August 2026: natlawreview.com
- Miller Canfield, DHS Finalizes Weighted H-1B Selection System for FY 2027, January 2026: millercanfield.com
- Ogletree, USCIS Completes Fiscal Year 2027 H-1B Lottery (filing window and 1 October start date): ogletree.com
- Congressional Research Service, The H-1B Visa for Specialty Occupation Workers (filing fees of $960–$7,380): everycrsreport.com
- TIME, U.S. Expands Crackdown on Green Cards, Student Exchange Visas, 9 October 2026: time.com
- Axios, H-1B visas aren’t suspended. Here’s what Vance is really targeting, 8 October 2026: axios.com
- YourStory, Few H-1B workers transitioning to green cards via PERM: Nasscom, 9 October 2026: yourstory.com
- The Straits Times via Asia News Network, Trump’s H-1B visa crackdown is starting to drive tech talent back to India, China, 17 August 2026: asianews.network
- Business Today, How India’s GCC story hits 2030 target 4 years early (Nasscom–Zinnov India GCC Landscape 2026), 7 May 2026: businesstoday.in
- Blind, 1 in 6 NRIs on H-1B under sudden threat of deportation, August 2025: teamblind.com
- SHRM, New H-1B, L-1 Extension Fees Take Effect Sept. 9, 11 August 2026 (DHS final rule, Federal Register 2026-16231): shrm.org
- NAFSA, September 18, 2026 Executive Order Directs Increased H-1B Scrutiny of Employer Layoffs: nafsa.org
- National Law Review, H-1B Workers Could Lose 60-Day Grace Period Under DHS Proposal, August 2026: natlawreview.com
- Stanford HAI, The 2026 AI Index Report: hai.stanford.edu
- Open Source For You, India’s Open Source AI Boom Outpaces Patents, Says Stanford (AI Index 2026), April 2026: opensourceforu.com
- The Sentinel, Indian women lead world in AI skills (Stanford AI Index 2026), 31 May 2026: sentinelassam.com
- Deccan Herald, India jumps to 3rd position in global AI vibrancy index, 31 December 2025: deccanherald.com
- India Labour Codes in force from 21 November 2025: BDO India
- PF wage ceiling of ₹25,000 from 17 September 2026: Business Today
This article is general information, not legal, tax or immigration advice. US immigration rules are changing quickly and several measures are being challenged in court. Check the current position with an immigration attorney and tax adviser before acting.