PERM Suspensions at Microsoft, Adobe and Six IT Firms: What’s Happening and Why It Matters
Image by IMMerge Law, PLLC. Graphic of form with PERM title, stack of papers with binder clip and red suspended stamp. IMMerge Law logomark in corner.
If you’ve been following the coverage on the Microsoft PERM suspensions, you may have noticed that H-1B and PERM keep getting mentioned in the same breath. They’re related, but they’re not the same thing, and the difference matters for the people and companies affected.
On October 8, the Department of Labor announced it is suspending Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini from PERM, the labor certification step that comes first in most employer-sponsored green card cases. DOL says it will not accept new applications and will not process pending ones from these employers. H-1B status and work authorization are not affected.
Why PERM freezes can still affect H-1B workers
For many H-1B holders, PERM is more than a green card step. It can also be what allows continued stay in the U.S. After six years, extensions generally depend on a PERM or I-140 filed at least 365 days earlier. When a PERM can’t be filed or a case is frozen, that timeline can become a real concern. Separately, the 180-day window to file an I-140 after PERM approval keeps running regardless of what’s announced.
What the government is saying
Officials gave different reasons for different companies. For Microsoft and Adobe, the Labor Secretary cited multiple active federal investigations. The Vice President also said Microsoft laid off thousands of U.S. workers while continuing to sponsor foreign workers. For the six IT services firms, the focus was volume: more than 100,000 labor certifications and 230,000 H-1B approvals since 2009 across the eight companies.
A few things worth keeping in mind: the investigations haven’t been described publicly, no one has been charged, and these are allegations. Microsoft says 80% of its roughly 6,000 H-1B filings last year were extensions or status changes for existing employees. TCS says its PERM filings were in the single digits over the last two years.
How long will it last?
That’s still unknown. DOL hasn’t published a written notice or stated a timeline. Many practitioners expect it may rely on 20 C.F.R. § 656.31(b), which allows an initial suspension of up to 180 days, extendable until the investigation ends. That’s an expectation, not a confirmed fact. Some attorneys are also questioning whether DOL has the authority to act this way, so litigation is possible.
Beyond the eight named companies
Employers who weren’t named aren’t directly affected. Still, it’s a notable signal. DOL has been pointing toward tougher enforcement this year, including a nationwide H-1B and PERM fraud probe launched in July, plus earlier PERM suspensions of Cloudera in May and Cognizant in September. The takeaway for the broader market is that recruitment and sponsorship practices are getting a closer look.
Questions many employers and workers are likely asking right now:
Timelines: Who in the workforce is approaching the six-year H-1B limit, and where do their green card cases stand?
Recruitment records: The Cloudera action reportedly began with an allegation that the recruitment process was designed to keep qualified American workers from applying. How consistent and well documented is the recruitment process?
Relationships: Are there vendor or client ties to any of the eight named companies?
Contingencies: What are the options if a case stalls?
What’s next: A written DOL notice, additional companies being named, or a court challenge could each change the picture quickly.
Every situation is different, and this is a fast-moving story. If you have questions about your own circumstances, a conversation with an immigration attorney is a good next step.
This newsletter is for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship.
Maguette Ndiaye Eluyode Founder & Managing Attorney, IMMerge Law
Sources: https://www.nytimes.com/2026/10/08/us/politics/microsoft-visas-green-cards.html?smid=url-share; https://thenextweb.com/news/perm-suspension-capgemini-europe; https://techcrunch.com/2026/10/08/us-bars-microsoft-adobe-and-major-it-firms-from-green-card-program-for-skilled-foreign-workers/