The U.S. Department of Labor suspended Microsoft, Adobe and six major IT services companies from the Permanent Labor Certification Program, commonly known as PERM, on October 8, 2026.
Labor Secretary Keith Sonderling said the department would stop accepting new PERM applications involving the affected employers and pause the processing of pending applications. The administration cited active federal investigations and allegations of fraud or misuse, but no final finding of wrongdoing has been announced. (news.bloomberglaw.com)
The eight affected companies are:
The action could delay a common employment-based green card pathway for thousands of foreign professionals. However, it does not suspend the H-1B program or automatically cancel employees’ existing immigration status.
PERM is usually the first major step in an employer-sponsored EB-2 or EB-3 green card case. The employer—not the employee—files the application with the Department of Labor.
Before receiving certification, an employer generally must test the U.S. labor market and show that there are not sufficient qualified, willing and available U.S. workers for the position. The employer must also show that hiring the foreign worker will not negatively affect the wages and working conditions of similarly employed U.S. workers. After PERM approval, the employer can generally proceed with Form I-140 through U.S. Citizenship and Immigration Services. (dol.gov)
For the eight suspended employers, the immediate consequences are:
Federal regulations allow the Labor Department to suspend PERM processing when an employer, attorney or agent is under investigation for possible fraud or willful misrepresentation connected to the program. An initial suspension may last up to 180 days, but the department may extend it until investigations or related court proceedings are completed. (ecfr.gov)
That means the suspension has no confirmed end date.
Despite some headlines describing the action as an H-1B crackdown, the October 8 announcement specifically targets PERM labor certification.
PERM and H-1B are separate processes:
| Process | Primary purpose | Effect of the suspension |
|---|---|---|
| H-1B | Temporary employment authorization | Not directly suspended |
| PERM | Labor certification for most EB-2 and EB-3 green cards | New and pending cases involving the eight employers are frozen |
| Approved green card cases | Cases that have already moved beyond PERM | Not automatically canceled by this announcement |
An employee with a valid H-1B approval can generally continue working under that approval, subject to the normal terms of the petition and maintenance-of-status requirements. The announcement also does not revoke existing green cards. (investing.com)
However, the freeze may create long-term problems for employees approaching the six-year H-1B limit. Certain H-1B extensions beyond six years depend on the timing or approval of a PERM application or Form I-140. Workers whose employers cannot file PERM sufficiently early may have fewer extension options, depending on their individual history and any previously filed immigrant petition.
Foreign professionals employed by one of the eight companies should first determine exactly where their green card case stands:
Workers should also calculate their remaining H-1B time, including any time spent outside the United States that could potentially be recaptured. Changing employers may be an option in some cases, but a new employer normally must start its own green card sponsorship process. An employee generally cannot simply transfer an unapproved PERM case from one company to another.
Because the investigation remains ongoing, workers should avoid making decisions based only on company-wide announcements or online case predictions. The effect will depend on the employee’s current status, PERM filing date, I-140 history and time remaining in H-1B status.
The suspension does not directly change F-1, CPT, OPT or STEM OPT rules. It also does not prevent an affected company from filing an H-1B petition solely because the company’s PERM processing has been suspended.
However, F-1 and OPT candidates considering employment with one of these companies should distinguish between:
A company may remain able to sponsor temporary status while being unable to move forward with a new PERM case. Students evaluating job offers should therefore ask separate questions about H-1B sponsorship, green card sponsorship and when the employer expects to begin each process.
Microsoft has disputed the administration’s characterization of its immigration practices. The company said most of its recent H-1B filings involved extensions or status changes for existing employees and stated that it expects to provide the administration with additional information. (blogs.microsoft.com)
Until the Labor Department resumes processing or publishes further case-specific guidance, affected employees should treat PERM timelines at these eight companies as uncertain.