The U.S. Department of Labor has suspended eight major tech and IT outsourcing companies from the PERM labor certification program. The department announced the action on October 8, 2026. As a result, big IT employers, including Microsoft and Adobe, can no longer sponsor foreign workers for job-related green cards through PERM. Vice President JD Vance also spoke at a media conference. He singled out Microsoft for laying off 6,000 American workers in favor of cheaper foreign talent. In other words, he criticized lower wages, fewer company benefits, and more employer-favored rules for foreign hires.
“There has been no company in the United States, unfortunately, that has abused this system more than Microsoft,” Vice President JD Vance said on Oct. 8th.
Which Companies Are Suspended From the PERM Labor Certification Program?
The suspension halts new PERM applications. It also freezes all pending applications for the following eight entities:
- Microsoft (Tech)
- Adobe (Tech)
- Cognizant (IT outsourcing)
- Infosys (IT outsourcing)
- Tata Consultancy Services (TCS) (IT outsourcing)
- Wipro (IT outsourcing)
- HCL Technologies (IT outsourcing)
- Capgemini (IT consulting/outsourcing)
Key Details of the PERM Suspension
- What PERM Is: PERM labor certification is the first step for employers who sponsor an H-1B visa holder for a permanent employment-based green card.
- Reason for Suspension: Labor Secretary Keith Sonderling and the Trump administration cited active federal investigations. They also cited allegations of program misuse, fraud, and displacement of U.S. workers.
- H-1B Status Impact: The action applies only to the PERM green card process. However, this announcement does not automatically cancel or suspend active H-1B visas.
- Current Status: Existing approved I-140 petitions, pending I-485 adjustments, and corporate subsidiaries remain under review. No comprehensive final guidance exists yet. Therefore, affected employees should consult an immigration attorney.
Reaction and Background: Past PERM Enforcement
Some say the suspension marks a victory for American tech workers. These workers have complained about unfairly losing jobs to immigrant workers.
Jobs Now, an advocacy group of US citizens working in big tech, celebrated Vance’s announcement on X with a video of dancing crabs. The group publicizes hard-to-find PERM job postings. It says it helped Americans apply to nearly 500,000 jobs across 7,000 employers between last January and this past July.
The group’s members have also filed complaints against big tech companies over alleged PERM abuse. In addition, they have called for major changes to the employment immigration system. “Every job in America should be offered to an American first, no exceptions,” the group told WIRED in an unsigned statement.
This isn’t the first time PERM has put tech companies in the spotlight. Earlier this year, OpenAI and a company it acquired agreed to settle the Trump administration’s accusations of rule violations. Similarly, Apple reached a deal in 2023.
What Should Affected Workers and Employers Do Now?
If you work for one of the eight companies, start by confirming where your case stands. The same applies if your employer plans to sponsor you. Next, gather your PERM, I-140, I-485, and pay records. However, do not assume the suspension affects your H-1B status, because the action applies to the PERM process. Finally, because guidance is still developing, talk to an immigration attorney before making decisions about your job or filings.
Prefer to watch? Attorney Marina Shepelsky explains how H-1B holders can switch to a Green Card in this short video on our YouTube channel.
Also keep in mind other changes that affect workers, including the end of automatic work permit extensions and USCIS fee increases for FY 2027. In addition, our overview of adjustment of status versus consular processing and the full range of immigration through work and investment may help you plan.
PERM Labor Certification Suspension: Frequently Asked Questions
What is PERM labor certification?
PERM labor certification is the first step for employers who sponsor an H-1B visa holder for a permanent employment-based green card. The U.S. Department of Labor reviews the application before the employer can move forward. For details, read the agency’s overview on the Department of Labor PERM page. You can also see our guide to work visas and employment-based green cards.
Which companies are suspended from PERM?
The suspension covers eight entities: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, and Capgemini. It halts new applications and freezes all pending applications involving those companies.
Does the PERM suspension cancel my H-1B visa?
No. The action applies specifically to the PERM green card process. Therefore, this announcement does not automatically cancel or suspend active H-1B visas. For more, read about new H-1B sponsorship policies and your H-1B work visa options.
What happens to my pending PERM, I-140, or I-485?
The suspension freezes pending PERM applications involving the eight companies. Meanwhile, existing approved I-140 petitions, pending I-485 adjustments, and corporate subsidiaries remain under review. The government has not yet issued comprehensive final guidance. For that reason, affected employees should speak with an immigration attorney about their specific case.
Can the PERM suspension expand to other companies?
Vice President JD Vance said the suspension could extend to other tech companies. In addition, officials have not announced an end date. Therefore, employers and workers outside the eight named companies should keep monitoring developments.
What are my options if my employer’s PERM is frozen?
Your options depend on your background. For example, some professionals may qualify for routes that do not depend on an employer. These include an EB-2 National Interest Waiver (see what to know about EB-2 NIW) or an O-1 visa for extraordinary ability. An attorney can review which path fits your situation.
Should I hire a PERM attorney in New York?
If your employer’s case is affected, or you plan an employer-sponsored green card, a consultation can help. It can clarify your options and help you avoid costly mistakes. Shepelsky Law Group, a New York immigration law firm, handles employer green card sponsorship through PERM and work-based Green Card cases.
Need Help? Talk to a New York PERM Attorney
At Shepelsky Law Group, a New York immigration law firm, we help workers and employers understand their options. Learn more about our attorneys or contact us online.
To legalize in the US , call Shepelsky Law Group team at Tel: (718)769-6352 or book your consultation directly at https://shepelskylaw.cliogrow.com/book