Key points
- The key change: Microsoft, Adobe and six IT outsourcing firms can't file new PERM applications, and pending ones are on hold
- PERM is a required step for most employer-sponsored green cards
- The US cited active fraud investigations and set no end date; Microsoft disputes the administration's figures
- What stays the same: US tourist visas and ESTA aren't affected
New and pending PERM applications from the eight companies are on hold while federal fraud investigations continue
The US Department of Labor suspended Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini from the Permanent Labor Certification Program (PERM) on October 8, 2026. PERM is a required step for most employer-sponsored green cards. The suspension stops these companies from filing new PERM applications or progressing pending ones.
US Secretary of Labor Keith Sonderling announced the move at a White House press conference led by Vice President JD Vance, who heads the White House Task Force to Eliminate Fraud. “We will not accept any new or process any pending permanent labor certification applications involving these companies,” Sonderling said.
Until October 8, the eight companies could file PERM applications as normal. Now, new applications are refused and pending ones are frozen.
Sonderling said the six IT outsourcing firms face criminal investigations led by the Labor Department’s Office of Inspector General. Microsoft and Adobe were suspended over “multiple active federal investigations.”
Can H-1B workers at these companies still get a green card?
Not through new or pending PERM applications sponsored by these employers, for now. The announcement didn’t say what happens to labor certifications that were already approved.
PERM requires an employer to show that hiring a foreign worker permanently won’t hurt US workers’ wages or job prospects. Vance summed up the link: “The H-1B visa is how the people get into the United States in the first place. And then a PERM program is how those employees stay.”
The administration hasn’t announced any change to the H-1B visas these employees currently hold.
Why did the US suspend Microsoft?
Vance said Microsoft laid off 6,000 American workers last year while benefiting from 6,300 H-1B visas and almost 3,000 green cards. “There has been no company in the United States, unfortunately, that has abused this system more than Microsoft,” he said.
He said the alleged fraud lies in employers certifying that foreign hires have highly specialized skills when they’re simply replacing American workers at lower wages. The administration didn’t present detailed evidence for its allegations against Microsoft during the announcement.
Sonderling said the eight companies have requested almost 3 million foreign workers since 2009, receiving over 230,000 H-1B approvals and over 100,000 permanent labor certifications. He also said the task force has helped uncover US$22 billion in visa fraud. He didn’t attribute that amount specifically to the eight suspended companies.
How did Microsoft respond?
Microsoft disputed the figures, according to Reuters. The company said about 80% of its H-1B applications last fiscal year were for existing employees, not new hires, and that it pays H-1B staff the same as colleagues in comparable roles.
Tata Consultancy Services declined to comment, and the other six companies didn’t immediately respond, Reuters reported. Nasscom, India’s IT industry body, said Indian tech firms in the US now rely much less on H-1B visas.
How long will the PERM suspension last?
There’s no end date. Vance said “the suspension of PERM is going to last as long as it needs to” and that the goal is for the companies to change how they hire.
He added that Microsoft will stay suspended “until they show that they’re going to get serious about putting American workers first.”
The move follows the administration’s US$100,000 fee on new H-1B petitions, which a federal appeals court kept blocked in July 2026.
Which universities are being investigated for J-1 visa fraud?
Vance also announced investigations into nine universities over their use of J-1 exchange visitor visas: Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, Arizona State and MIT.
He said these universities use J-1 visa holders on federally funded grants at a rate of about 61%, compared with a national average of 38%. Labor Inspector General Anthony D’Esposito said subpoenas have been served and announced a new visa fraud strike team working with the US Department of Justice.
Does this affect US tourist visas or ESTA?
No. The suspension applies to PERM labor certification applications involving the eight named companies. Travelers applying for a US B1/B2 visa or visiting on an ESTA aren’t affected.
