The Trump administration suspended eight major employers from the PERM process on October 8, 2026, blocking Microsoft, Adobe and six large IT services companies from using a key step in the employment-based green card system. Officials said the action was tied to fraud concerns and an effort to protect job opportunities for U.S. workers.
Vice President JD Vance and Labor Secretary Keith Sonderling announced that the Department of Labor would stop accepting new permanent labor certification applications involving Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
The department also said it would not process pending PERM applications involving those employers. Officials cited alleged program abuse and, in the cases of Microsoft and Adobe, multiple active federal investigations. The administration had not publicly detailed the underlying evidence or announced how long the suspensions would remain in place as of October 9, 2026.
Vance focused particularly on Microsoft, arguing that the company continued seeking immigration benefits for foreign professionals while conducting layoffs. The allegation reflects the administration's broader position that employers should not use foreign-worker programs to displace qualified U.S. workers.
PERM, formally known as permanent labor certification, is administered by the Labor Department. In most cases, an employer must complete this process before filing an employment-based immigrant petition with U.S. Citizenship and Immigration Services.
The employer generally must test the U.S. labor market and demonstrate that there are not sufficient able, willing, qualified and available U.S. workers for the position. The department must also determine that hiring the foreign worker would not negatively affect the wages and working conditions of similarly employed workers.
The suspension does not directly cancel H-1B status. Instead, it restricts the affected companies' ability to complete the labor-certification stage for sponsored employees pursuing permanent residence. That distinction matters for international professionals because H-1B is a temporary work classification, while PERM is often an early step toward an employer-sponsored green card.
Employees with PERM cases sponsored by the eight companies may face delays or uncertainty because the government said pending applications would no longer be processed. Workers considering a job with one of the affected employers may also need to evaluate whether the company can currently support their long-term immigration plans.
Microsoft disputed the administration's characterization of its hiring practices. The company said about 80% of the roughly 6,000 H-1B petitions it submitted during the previous fiscal year involved extensions or status changes for existing employees rather than new hires. It also said it pays H-1B employees comparably to others performing similar work and plans to provide additional information to the administration.
This article provides general information and is not legal advice. Affected workers should consult qualified immigration counsel about their individual cases.