PERM Suspension: What It Means for H-1B Workers at 8 Firms
Quick answer
The PERM suspension announced on October 8, 2026, means the U.S. Department of Labor will not accept new, or process pending, permanent labor certification applications involving Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. It pauses the first step of employer-sponsored green cards; by itself it does not cancel anyone's H-1B status.
Key takeaways
The Labor Department suspended eight companies from the Permanent Labor Certification (PERM) program on October 8, 2026, citing multiple active federal investigations.
New PERM filings and applications already waiting in the queue for these employers are frozen while the suspension applies.
According to VisaVerge's reading of the action, already approved PERM certifications and approved I-140 petitions are not automatically erased.
The action targets green card sponsorship, not H-1B visas themselves, so it does not on its own end a worker's H-1B status or job.
Microsoft says most of its recent H-1B filings were extensions or status changes for existing employees, and it plans to give the administration more information.
Last updated: October 8, 2026
The PERM suspension announced in Washington on Thursday, October 8, 2026, targets employer-sponsored green cards at some of the largest users of the H-1B program. Vice President JD Vance and Labor Secretary Keith Sonderling said the U.S. Department of Labor (DOL) is suspending Microsoft, Adobe and six large IT services firms from the Permanent Labor Certification program, known as PERM. For H-1B professionals who were counting on these employers to sponsor them for permanent residence, the key questions are practical: whose case stops, whose case survives, and what happens next.
What is the PERM suspension announced on October 8, 2026?
The PERM suspension is a freeze on green card labor certifications for eight named employers. Secretary Sonderling said the department will not take in new applications from these companies and will not process applications they already have pending.
The announcement came at a White House news conference held by the administration's anti-fraud task force, which Vance leads. According to VisaVerge, the department pointed to multiple active federal investigations as the basis for the move. Vance accused Microsoft of using the system to replace American workers, telling the company, as quoted by TechCrunch: "You're a great American company, but you've got to hire great American workers." These are allegations made by administration officials; no court finding was announced.
Which companies are suspended from PERM?
Eight employers are covered. Two are U.S. software companies and six are global IT outsourcing and consulting firms:
Microsoft (Redmond, Washington)
Adobe
Cognizant, which DOL had already suspended from PERM on September 8, 2026, in a separate action announced by Labor Department Inspector General Anthony D'Esposito
Infosys
Tata Consultancy Services
Wipro
HCL Technologies
Capgemini
Sonderling said that, taken together and counted since 2009, these companies asked for almost 3 million foreign workers, received more than 230,000 H-1B approvals and obtained more than 100,000 permanent labor certifications, according to Spectrum News and VisaVerge.
How does PERM fit into the H-1B green card process?
PERM is the first, employer-side step in most work-based green card cases. Before a company can sponsor a foreign employee for permanent residence, it has to show the Labor Department that it could not find a qualified U.S. worker for the job.
That test involves real recruitment. The Week explained in September that employers place a 30-day job order with the state workforce agency and run job advertisements before filing. Vance described this advertising stage as the part of the system he says companies have gamed, claiming firms post ads where few Americans will see them and then cite the lack of replies.
The typical sequence for an H-1B worker looks like this:
The employer runs the required recruitment and files a PERM labor certification with DOL.
Once DOL certifies it, the employer files an immigrant petition (Form I-140) with U.S. Citizenship and Immigration Services (USCIS).
The worker then moves toward the final green card stage when a visa number is available.
The October 8 action stops step one for the eight companies. That is why the effect on each worker depends on how far their case has already gone.
Who is affected, and who is not?
Workers whose cases have not yet cleared labor certification are the ones directly hit. Workers further along are in a different position, based on how VisaVerge describes the order:
PERM not yet filed: the employer cannot start a new case while the suspension applies.
PERM filed and pending: the application sits unprocessed while the suspension applies.
PERM already certified: earlier approvals are not automatically wiped out by the new action.
I-140 already approved by USCIS: these petitions also stay in place and are not erased solely because of the PERM freeze.
H-1B status: the suspension is not an H-1B cancellation. It does not, on its own, end anyone's visa, status or employment.
This matters because a green card is what frees a worker from employer-tied status. Doug Rand, a former senior USCIS adviser during the Biden administration, told the Associated Press the move was incoherent for that reason: a permanent resident can change jobs and negotiate pay without fear for their immigration status, so blocking green cards keeps workers more dependent on their employers.
Why did the administration target Microsoft?
Vance said Microsoft has used the PERM system more than any other U.S. company. He claimed the company laid off about 6,000 American workers last year while obtaining about 6,300 H-1B visas and almost 3,000 green cards, and he argued that H-1B workers are paid less than Americans in the same roles. Spectrum News reported that the suspension alleges fraudulent use of the H-1B program to discriminate against American workers.
Microsoft disputes that picture. In a statement reported by the Associated Press, the company said about 80% of the roughly 6,000 H-1B applications it filed in the last fiscal year were to extend or change the status of people who already worked there. It said the remaining filings for new hires covered people already legally in the United States and equal about 1% of its U.S. workforce, and it said it looks forward to giving the administration more information. Adobe and the six IT firms had not commented when the first reports were published.
Context from USCIS data: Microsoft ranks fifth among U.S. employers for H-1B use, and Amazon ranks first, the Associated Press reported. Technology companies are the largest users of the visa, and nearly three-quarters of H-1B approvals go to workers from India.
What other work visa changes are happening right now?
The PERM suspension is one of several recent moves on foreign workers and students. Job seekers on visas should track all of them:
Universities and J-1 visas: the administration named nine universities for investigation over J-1 exchange visas: Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, Arizona State and MIT. Stanford said it would cooperate.
OPT fee proposal: on October 7, 2026, the Department of Homeland Security (DHS) proposed a $70,000 fee, paid by schools, for each international student in Optional Practical Training.
H-1B fee: a $100,000 H-1B fee was struck down by a federal judge in June 2026. In August the administration proposed a new $103,265 fee, which is not yet final.
Executive order: according to Howard University professor Ron Hira, a White House executive order last month directed agencies to protect American workers from H-1B abuse.
What should H-1B workers at these companies do now?
Start by pinning down exactly where your green card case stands, because the freeze treats each stage differently. Then plan around the facts rather than rumors.
Ask HR or the company's immigration counsel for your case status: not filed, PERM pending, PERM certified or I-140 approved.
Keep your H-1B documents current. The suspension does not end H-1B status, so normal extension and compliance deadlines still apply.
Get individual advice from a licensed immigration attorney before changing jobs or making decisions that affect your status.
Watch official channels. Follow updates from the Department of Labor's Office of Foreign Labor Certification and USCIS, not social media posts.
Avoid "green card guarantee" offers. Fear of delays attracts scams. Genuine employers and agencies do not sell guaranteed green cards or ask for fees over text or Telegram.
What happens next with the PERM suspension?
No end date has been announced. None of the reports so far give a duration, and the department has tied the action to ongoing federal investigations. Microsoft says it will provide more information to the administration, and the six IT services firms have yet to respond publicly. Legal challenges have followed earlier H-1B fee moves, so job seekers should expect further developments in the weeks ahead and check back for updates.
Frequently asked questions
What is a PERM suspension?
A PERM suspension bars an employer from using the Department of Labor's Permanent Labor Certification program. During the October 2026 suspension, DOL will not accept new or process pending PERM applications from the eight named companies, which pauses the first step of their employees' green card cases.
Which companies were suspended from the green card program?
The eight companies are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. Cognizant had already been suspended from PERM on September 8, 2026, in a separate action.
Does the PERM suspension cancel H-1B visas?
No. The suspension targets green card labor certification, not H-1B visas. It does not by itself cancel an employee's H-1B status or employment at the named companies.
What happens to an already approved PERM or I-140?
Approved PERM certifications and USCIS-approved I-140 petitions are not automatically erased by the suspension, according to VisaVerge's analysis. Workers whose cases are still waiting for labor certification are the ones directly paused.
How long will the PERM suspension last?
No end date has been announced. The Labor Department linked the action to multiple active federal investigations and has not said when it will be lifted.
Why was Microsoft suspended from PERM?
Vice President JD Vance alleged that Microsoft misused the H-1B and green card system to replace American workers. Microsoft said most of its H-1B filings were for existing employees and that it will give the administration more information.
Sources
This article was compiled from the sources listed above with AI-assisted writing and automated fact-checking by the Jobsiz editorial system. It is general information, not legal advice.