On October 8, 2026, Labor Secretary Keith Sonderling announced that the U.S. Department of Labor (DOL) is suspending eight employers from the permanent labor certification (PERM) program: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini.
At a White House press conference led by Vice President JD Vance, Sonderling stated: “We will not accept any new or process any pending permanent labor certification applications involving these companies.” No end date has been set. Vance said the suspensions would last “as long as it needs to.”
As of October 9, DOL has not published a written notice on its foreign labor certification announcements page. The suspension does not revoke H-1B status or existing work authorization. It blocks the named employers from filing new PERM applications and freezes their pending labor certification applications.
What DOL alleges, and what the suspension does not mean
Administration officials allege that employers represented they could not find qualified U.S. workers while conducting recruitment designed not to find them. They also alleged that some employers laid off U.S. workers while continuing to sponsor foreign workers.
Vance said Microsoft laid off roughly 6,000 U.S. workers in the past year while receiving about 6,300 H-1B approvals and nearly 3,000 green cards. Sonderling said the eight companies collectively requested almost three million foreign workers since 2009, with more than 230,000 H-1B approvals and more than 100,000 labor certifications.
These are allegations, not findings. Microsoft disputed the administration’s characterization, stating that its H-1B wages are among the highest of all filers and that it will provide the administration further information. None of the eight employers has been charged with a crime or debarred.
The action comes amid increased enforcement activity. Attorney General Todd Blanche said the Department of Justice is investigating companies suspected of favoring foreign workers over U.S. workers, with possible civil and criminal consequences. DOL’s Inspector General announced a visa-fraud strike team and subpoenas to nine universities over J-1 exchange visitor use. The announcement follows the August OpenAI PERM settlement and September executive action concerning scrutiny of H-1B employers after layoffs.
The legal authority for suspending PERM processing
The governing regulation is 20 C.F.R. § 656.31(b). When DOL learns of possible fraud or willful misrepresentation connected to the PERM program, it refers the matter to an appropriate agency for investigation and may suspend processing of labor certification applications involving the employer.
A suspension may last up to 180 days initially. No later than 180 days after it begins, the National Certifying Officer may resume processing some or all applications or extend the suspension until the investigation or judicial proceedings conclude. Unless the investigating agency objects in writing, the regulation requires DOL to provide written notice of the suspension to the employer.
A suspension is not a finding of fraud. Under § 656.31(d), if a matter does not result in a finding of fraud or willful misrepresentation, DOL must decide each pending application on its merits. The application is not automatically approved; it remains subject to the PERM requirements.
Debarment is a separate enforcement step under § 656.31(f). DOL may issue a written notice of debarment for up to three years, with a stated basis and review rights. None of the eight employers has been debarred.
PERM is the first step for most employment-based green cards. Without a certified labor certification, the employer generally cannot file Form I-140 based on that PERM case.
Which workers and employers face the greatest exposure?
H-1B employees approaching the six-year limit
H-1B status is generally limited to six years. Some workers qualify for extensions beyond that limit under 8 C.F.R. § 214.2(h)(13)(iii)(D) and (E) and the American Competitiveness in the Twenty-First Century Act (AC21):
- One-year extensions: May be available when at least 365 days have elapsed since the filing of a qualifying labor certification or Form I-140, subject to the applicable requirements.
- Extensions of up to three years: May be available to a worker with an approved I-140 who cannot obtain permanent residence because an immigrant visa number is unavailable under the applicable limits.
A worker whose PERM was filed more than a year ago may still have a route to a one-year H-1B extension, even while the PERM case is frozen. An approved I-140 may also preserve an extension path, depending on visa availability and other requirements. Neither extension is automatic.
Workers whose employer has not filed a PERM application may face greater risk if they are nearing six years of H-1B time. Affected employers cannot file a new PERM during the suspension. Alternative options, such as a new sponsor, a different immigration classification, or a cap-exempt position, require case-specific planning and time.
Workers with pending or approved green-card cases
A pending PERM case involving one of the eight employers is frozen for the duration of the suspension. The filing may establish a priority date, but the case cannot move to an I-140 filing until the labor certification is certified.
The administration has not announced that certified PERMs or approved I-140 petitions are affected. Because the announced suspension concerns labor certification applications, workers with a certified PERM or approved I-140 are generally in a stronger position. This remains a fast-moving enforcement action, and affected workers should confirm the status of their specific case.
A worker changing employers may be able to begin a new PERM process with a new sponsoring employer. An approved I-140 generally allows the worker to retain the earlier priority date, subject to applicable rules. The new employer must conduct its own labor-market test from the beginning.
Employees of employers not named
The announcement does not change PERM rules for employers outside the named group and does not itself affect their cases. The immediate change is heightened scrutiny, not a general change to the PERM process.
Employer and HR checklist
Employers, HR teams, and companies that place workers at one of the eight named employers should take these steps:
- Inventory all sponsored employees. Record each H-1B start date, remaining time toward the six-year limit, and whether a PERM or I-140 was filed or approved. Record the relevant filing and approval dates.
- Prioritize workers within 18 months of the six-year limit who have no PERM on file. A new sponsor, different classification, or cap-exempt role may take time to arrange.
- Audit PERM recruitment under 20 C.F.R. § 656.17. Retain the complete recruitment report, every applicant file, and the lawful, job-related reason each U.S. applicant was not hired.
- Map layoffs against pending and planned PERM filings. A layoff during the six months before filing, in the area of intended employment and in the sponsored occupation or a related occupation, triggers notice and consideration obligations for potentially qualified U.S. workers under § 656.17(k).
- Do not pause green-card planning based on headlines alone if your employer is not named. Continue applying the rules that currently govern your case.
- Monitor for the written notice. The regulation contemplates notice to each suspended employer. The notice, and any later Federal Register or DOL announcement, should define the scope more precisely than the press conference.
The same week, DHS issued a separate proposed rule concerning fees for SEVP-certified schools recommending students for Optional Practical Training: $70,000 for a first recommendation and $30,000 for each later recommendation, including STEM OPT extensions. That proposal is not final and is separate from the PERM suspension. The blocked $100,000 H-1B fee and the proposed $103,265 cap-subject H-1B fee are also separate matters. None determines whether a PERM application may be processed.
Obtain case-specific immigration guidance
Employers should review recruitment practices, layoff records, and sponsorship timelines before filing new applications. H-1B workers should confirm how much time remains before the six-year limit and whether their case may support an extension. Do not assume that the PERM suspension terminates H-1B status or existing work authorization; it does not.
Blasingame Law LLC advises employers and HR teams on PERM strategy, H-1B extensions beyond six years, I-140 portability, and workforce compliance. To discuss your organization’s sponsorship obligations or an individual case, visit Business Immigration Solutions or schedule a consultation. A business immigration attorney can assess the applicable options and deadlines based on the case record.
This article provides general information current as of October 9, 2026. It is not legal advice and does not create an attorney-client relationship. Immigration outcomes depend on individual facts and applicable law.
