Labor Department suspends PERM green card filings for Microsoft, Adobe and six other employers
On Oct. 8, Vice President JD Vance and Labor Secretary Keith Sonderling announced at the White House that PERM labor certification is suspended for Microsoft, Adobe and six IT outsourcing firms — no new filings and no processing of pending ones. No end date or written notice has been issued. Workers’ current H-1B status and approved I-140s are not directly affected.
Key points
- The eight: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL and Capgemini.
- Scope: most reports say new filings are barred and pending applications frozen; an Indian IT industry group described it more narrowly, as a bar on new filings only.
- Reasons: the Labor Secretary said the six outsourcing firms face criminal investigations led by the department’s Inspector General, and Microsoft and Adobe face “multiple active federal investigations.” No company has been charged or formally debarred.
- Duration: no end date. Law firms point to 20 CFR 656.31(b), under which an initial suspension lasts up to 180 days and can be extended during an investigation; the department itself has not cited a regulation.
- Not affected: workers’ current H-1B status, approved I-140s, green cards already issued, and PERM filings by other employers.
- Third round: DOL suspended Cloudera’s PERM filings for 180 days on May 12; Cognizant and Cloudera were suspended on Sept. 8; the Oct. 8 action is the broadest.
What happened
PERM is the first step for most employment-based green cards: an employer shows the Labor Department it could not find qualified U.S. workers, then uses the labor certification to file an I-140. On Oct. 8, at a White House press event led by Vice President JD Vance, Labor Secretary Keith Sonderling announced PERM suspensions for eight employers: Microsoft, Adobe and six IT outsourcing firms — Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL and Capgemini. Attorney General Todd Blanche and Labor Department Inspector General Anthony D’Esposito also attended.
According to Ellis, SHRM, The Hill and others, the companies cannot file new PERM applications and pending ones will not be processed. Vance said the suspension “is going to last as long as it needs to”; officials gave no end date, case count or reinstatement process. As of Oct. 15, the department had not posted a written notice.
Why
Sonderling said the six outsourcing firms face criminal investigations led by the department’s Inspector General, and Microsoft and Adobe face “multiple active federal investigations.” The attorney general said criminal or civil cases are possible depending on the facts. No company has been charged or found to have committed fraud.
The White House singled out Microsoft, saying it laid off about 6,000 U.S. workers last year while employing about 6,300 H-1B workers. CNBC noted that the USCIS figures the White House cited (6,258 H-1B approvals and 3,157 PERM cases) don’t match Bloomberg Law’s count from Labor Department data (about 1,680 PERM filings through the first three quarters of fiscal 2026).
A disputed legal basis
The department has not cited a regulation. Law firms point to 20 CFR 656.31(b): while an employer is under investigation for fraud or willful misrepresentation, the department may suspend processing its applications, initially for up to 180 days, with extensions while the investigation continues. Debarment is a separate penalty under 656.31(f) — up to three years, with written notice and a right to review — and none of the eight has been debarred.
Goel & Anderson and others argue that 656.31(b) only allows suspending processing; refusing new filings looks more like debarment without debarment’s procedures. That is a law-firm view, not a ruling, and no company has sued.
Not the first time
This is the third round this year:
- May 12: After the Justice Department sued Cloudera in April, alleging its PERM job ads steered applicants to a nonworking email address, the Labor Department suspended Cloudera’s PERM processing for 180 days — a period that ends in early November.
- Sept. 8: The Labor Department’s Inspector General announced on X that PERM filings by Cognizant and Cloudera were suspended.
- Oct. 8: The broadest action so far, covering eight employers.
What the companies say
Microsoft said 80% of its roughly 6,000 H-1B filings last fiscal year were to extend or change the status of existing employees, and its new hires were already in the U.S. legally — about 1% of its U.S. workforce. It said its H-1B use and layoffs are “in no way” related. Infosys told the stock exchange it expects no material impact, and TCS said its PERM filings were in the single digits over the past two years. Adobe did not immediately respond.
What it means for workers
The suspension targets employers’ PERM filings; it does not cancel a worker’s current H-1B status or an approved I-140. The impact depends on where your case stands:
| Stage | Main risk | Options |
|---|---|---|
| PERM not yet filed or pending | Green card progress stops; a PERM can’t move to a new employer | Check how much H-1B time you have left; a new employer must start a new PERM |
| Near the H-1B six-year limit with only a PERM | Extensions under AC21 §106(a) require a PERM or I-140 filed at least 365 days earlier | Work out the dates now and plan for another status if needed |
| I-140 approved | Relatively safe | Your priority date can carry over; after 180 days, an employer withdrawal generally doesn’t block H-1B extensions |
| I-485 pending 180+ days | Relatively safe | You may be able to port to a same or similar job under INA 204(j) |
The department has not issued written rules, so details may change. If you are in the green card process at one of the eight employers, check your PERM, I-140 and H-1B dates before deciding whether to change jobs.
What it means for you
- Approved I-140: the strongest position. Your priority date carries over to a new employer’s I-140 unless the original is revoked for fraud or similar grounds, and an I-140 approved for 180 days or more generally still supports H-1B extensions even if the employer withdraws it.
- Pending PERM, no I-140 yet: a PERM cannot move to a new employer, so changing jobs means starting a new PERM. If you are near the H-1B six-year limit, mind the AC21 §106(a) rule that a PERM or I-140 must have been filed at least 365 days earlier.
- I-485 pending 180+ days with an approved I-140: you may be able to port to a same or similar job under INA 204(j), using Supplement J.
- DOL has not issued a written notice, so details may change. If you are in the green card process at one of the eight employers, have an attorney check where your case stands before changing jobs.
Timeline
- Justice Department’s Civil Rights Division sues Cloudera over PERM recruitment that allegedly discouraged U.S. applicants
- Labor Department suspends Cloudera’s PERM processing for 180 days
- Labor Department Inspector General announces PERM suspensions for Cognizant and Cloudera
- President signs EO 14431, making employer layoffs a factor in H-1B review
- White House announces PERM suspensions for Microsoft, Adobe and six other employers
- Microsoft says 80% of its H-1B filings were for existing staff; Infosys and TCS expect no material impact
Sources
- ABC News: Vance suspends Microsoft and others from the green card program
- CNBC: Microsoft and Adobe suspended from PERM
- The Hill: The layoff and H-1B figures
- CNBC: The Microsoft visa data the White House cited
- SHRM: Microsoft’s response and what it means for employers
- Ellis: What is suspended
- WR Immigration: The legal basis
- Goel & Anderson: Suspension versus debarment
- Newsweek: Cognizant suspended in September
- Investing.com: Infosys expects no material impact
- Labor Department: May release on Cloudera
Wondering what this means for your case?
Hibee’s team can assess it against your status, timeline and employer.
This article reflects public information as of Oct. 15, 2026. It is for general information only and is not legal advice. Hibee is not a law firm; for your specific case, rely on the latest official guidance and a licensed attorney.
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