On October 8, 2026, the U.S. Department of Labor suspended Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini from the PERM program. The Labor Department will not accept new PERM applications from these companies, and it has stopped work on the ones already filed. H-1B status is not suspended, and no end date has been set.
Key Takeaways
- The Labor Department suspended eight companies, including Microsoft and Adobe, from PERM (the first step in most work-based green cards) because they are being investigated for possible visa fraud.
- These companies can't currently start new PERM cases, and cases already filed are paused, which can slow down green cards and the H-1B extensions that rely on them.
- H-1B visas are not suspended, so workers at these companies can keep working on their current H-1B while the suspension is in place.
- No end date has been set, and the Labor Department can keep cases on hold until the investigation and any court case are finished.
What did the Labor Department announce on October 8?
On Thursday, October 8, 2026, the Labor Department said it had suspended eight employers from the PERM program. Vice President JD Vance announced the Microsoft suspension at a press event. Labor Secretary Keith Sonderling and Attorney General Todd Blanche joined him, and Sonderling named the other seven companies.
Vance said Microsoft laid off about 6,000 American workers last year while it gained 6,300 H-1B visas and about 3,000 green cards. He also claimed some of these foreign workers were paid tens of thousands of dollars less than American workers in similar jobs. Blanche said criminal charges against companies or people are possible.
Microsoft pushed back in a statement. The company said most of its U.S. employees are Americans, and that about 80% of its H-1B filings last year were for people who already worked there. These claims have not been tested in court.
The suspension is part of a wider push to police job-based immigration, including the Labor Department's Project Firewall H-1B enforcement effort.
Which companies were suspended from PERM?
Eight companies are now suspended from PERM:
Company | Type |
|---|---|
Technology | |
Technology | |
IT outsourcing | |
IT outsourcing | |
IT outsourcing | |
IT outsourcing | |
IT outsourcing | |
IT outsourcing |
Cognizant was suspended once before. In early September 2026, the Labor Department's inspector general stopped new PERM filings from Cognizant. The October 8 action applied the same step to seven more employers.
According to the Labor Department, these eight companies have received more than 230,000 H-1B approvals and at least 100,000 permanent labor certifications.
Is H-1B suspended too?
No. The suspension covers PERM green card sponsorship, not the H-1B or other visas. Workers at these companies keep their current visa status and their right to work.
The two programs are still linked. Many H-1B workers need a PERM case on file to stay past the six-year H-1B limit, so a PERM freeze can still affect them. The section on the six-year limit below explains how.
What happens to pending PERM applications?
PERM cases already filed by these eight companies are on hold. Sonderling said the Labor Department will not accept new applications or keep working on pending ones from these employers.
Timing makes this harder. Before an employer files PERM, it has to advertise the job and look for U.S. workers, and it generally has to file within 180 days of that search. If the window closes during the suspension, the employer may have to start the job search over. Workers waiting in line lose time too, since their priority date, their place in the green card line, usually comes from the day the PERM was filed.
How long will the PERM suspension last?
No end date has been set, and the Labor Department has not yet posted a written notice. Reports point to 20 CFR 656.31 as the likely rule behind it. That rule lets the Labor Department pause cases for an employer under investigation for possible fraud. The first pause can last up to 180 days. After that, the Labor Department can restart some or all cases, or keep the hold in place until the investigation and any court case are over.
The same rule allows a tougher penalty called debarment, which bans an employer from the program for up to three years. No debarment has been announced.
What happens next?
More action is likely. Officials described the suspension as part of an ongoing fraud investigation, and the attorney general said criminal charges could follow.
The Labor Department has not said whether other employers are under review. The suspension grew from one company to eight in about a month, so more companies could be added.
Which universities are under J-1 visa investigation?
The same announcement also covered universities. Anthony D'Esposito, the Labor Department's inspector general, said his office is investigating possible J-1 visa fraud at nine schools: Harvard, Yale, Stanford, Brown, MIT, Caltech, UC Davis, Arizona State, and the University of Pittsburgh.
The State Department runs the J-1 exchange program under the name BridgeUSA. D'Esposito said his office has already sent subpoenas, which are legal orders to hand over records.
The J-1 visa lets students, researchers, professors, interns, and others come to the U.S. through approved exchange programs. It is separate from both PERM and H-1B. Officials claim the schools used exchange programs to bring in workers for less than American wages. No university has been suspended or charged, and nothing announced so far changes the status of current J-1 exchange visitors.
What about workers with already approved I-140s?
Workers with an approved I-140 are further along and less at risk. USCIS handles the I-140, while the suspension applies only to the Labor Department's PERM step. If an approved I-140 is stuck behind the yearly limit for people from one country, the worker can usually extend H-1B status three years at a time without a new PERM.
An I-140 that has been approved for at least 180 days usually keeps its priority date, even if the employer later withdraws it. The announcement did not say what happens to PERM cases the Labor Department already approved but that have not reached the I-140 stage yet.
Are there green card options that skip PERM?
Yes. Some job-based green cards do not need PERM at all:
Category | Who it fits | Can you file for yourself? |
|---|---|---|
People with an advanced degree or rare skills whose work benefits the U.S. | Yes | |
People at the top of their field with major awards or recognition | Yes | |
Leading professors and researchers | No, an employer files |
These categories need strong evidence and will not fit everyone. Each one still uses a priority date, so the visa bulletin, published monthly by the State Department, still decides when a green card becomes available.
What is the PERM program?
PERM is the Labor Department's permanent labor certification program, and it is the first step for most job-based green cards in the EB-2 and EB-3 categories. Through PERM, an employer shows that no qualified U.S. worker is available for the job, and that hiring a foreign worker will not lower pay for U.S. workers in similar jobs.
The process usually has three parts. First, the Labor Department sets the minimum pay for the job, called the prevailing wage. Next, the employer advertises the job and looks for U.S. workers. Then the employer files the PERM application. Once the Labor Department approves it, the employer files Form I-140 with USCIS, and the worker later applies for the green card itself.
How Ellis can help
A PERM freeze can affect H-1B deadlines, a spouse's work permit, and a worker's place in the green card line, often all at once. Ellis attorneys review where each case stands, keep track of the deadlines that matter, and lay out options like a job change or a self-filed green card when the usual path is blocked. Get in touch today.
This article is general information, not legal advice, and this story is still developing.