Microsoft, Infosys, Tata and 5 More Suspended From PERM: What H-1B Workers Should Do Now

On October 8, 2026, the U.S. Department of Labor suspended eight major employers from the program they use to sponsor foreign workers for green cards. The list includes Microsoft and Adobe, plus six large IT services firms: Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. If you work for one of these companies on an H-1B visa, or you are married to someone who does, your green card case may have just stopped moving.

The short version: the suspension is in the PERM labor certification process, the first step of most employment-based green cards. It is not a ban on H-1B visas, and it does not cancel anyone's status today. But it freezes the step that many H-1B workers need to stay past six years, to keep a spouse's work permit, and to eventually get a green card. What it means for you depends on how far your case has already gone. Below is what was announced, the rule the government is using, and what to do at each stage, as of October 9, 2026.

What the Labor Department Announced

Labor Secretary Keith Sonderling and Vice President JD Vance announced the suspensions on Thursday, October 8. According to news reports, the department will not accept any new permanent labor certification applications from the eight companies and has stopped processing the ones already pending. Microsoft and Adobe were suspended "due to multiple active federal investigations," according to UPI's report of the announcement.

Sonderling framed the action as a fraud crackdown: "The Department of Labor is taking historic action by shutting down the pipeline of systemic fraud." He also said the companies had received more than 230,000 H-1B approvals and more than 100,000 permanent labor certifications since 2009. Vance singled out Microsoft, saying it had laid off American workers while sponsoring thousands of foreign workers.

Microsoft disputed that picture. The company said that about 80 percent of its H-1B filings were to extend or change the status of people who already work there, not new arrivals. No end date for the suspensions was announced. None of the companies has been charged with a crime, and an investigation is not a finding of fraud.

This did not come out of nowhere. In May 2026 the department suspended PERM processing for Cloudera for 180 days, and in September it did the same to Cognizant. When it announced the Cloudera action, the department said it "will continue to proactively enforce its existing suspension authority against any employer, attorney, or agent who is under investigation." October 8 is that policy applied to much larger companies.

What PERM Is and Why It Matters to H-1B Workers

For most employment-based green cards in the EB-2 and EB-3 categories, the employer must first prove to the Labor Department that it tested the U.S. job market and could not find a qualified, available U.S. worker for the position. That certification is called PERM. Only after the Labor Department certifies the position can the employer file the immigrant petition, Form I-140, with USCIS. We explain the full process in our guide to PERM labor certification for Pennsylvania employers.

For an H-1B worker, PERM is more than a green card step. The H-1B has a six-year limit. The law lets you stay past six years only if your green card process has reached certain milestones, and the first milestone is a PERM application or I-140 filed at least 365 days earlier. For workers born in India, who face the longest green card backlogs in the world, those extensions are often the only way to stay in the United States while waiting for a visa number. That is why a PERM freeze at these particular companies matters so much.

The Rule the Government Is Using

The suspensions rest on a regulation that has been on the books for years, 20 C.F.R. § 656.31(b). It says that if the Labor Department learns an employer is under investigation by the Justice Department, DHS or another agency "for possible fraud or willful misrepresentation in connection with the permanent labor certification program, the Department may suspend processing of any permanent labor certification application involving such employer, attorney, or agent until completion of any investigation and/or judicial proceedings."

Three details in that rule matter for workers:

• It is a suspension, not a denial. Pending applications are put on hold. They are not denied by the suspension itself.
• It starts at up to 180 days. Under 20 C.F.R. § 656.31(b)(2), a suspension "may last initially for up to 180 days." After that, the National Certifying Officer may resume processing some or all of the applications, or extend the suspension until the investigation or court proceedings end.
• Denial and revocation are separate steps. A certifying officer can deny an application found to be fraudulent (§ 656.31(a)), and the department can move to revoke an already approved certification through a separate notice process (§ 656.32). Neither has been announced for these companies' workers.

What It Means for You, Stage by Stage

The single most important question is where your case stands today. Find your stage below.

1. Your employer was still recruiting and had not filed PERM

Your employer cannot file. For professional positions, the required recruitment must happen within six months before the PERM application is filed (20 C.F.R. § 656.17(e)(1)). If the suspension outlasts that window, the recruitment will likely have to be redone, and your eventual priority date moves later. If you are early in your H-1B years, this is a delay. If you are in year five or six, it is a planning emergency.

2. Your PERM application is pending

Your application is frozen, not denied. That distinction matters for H-1B extensions. Under 8 C.F.R. § 214.2(h)(13)(iii)(D), you can get H-1B extensions past six years in one-year increments if at least 365 days have passed since your PERM application was filed. Those extensions continue until a final decision, such as a denial, is made. A suspended application has not been decided. Just as important, the H-1B employer "need not be the employer that filed the application for labor certification." So a PERM that has been pending for more than a year may still support one-year extensions, even with a new employer. Expect closer scrutiny of these filings, and do not rely on this without a lawyer reviewing your dates.

3. Your PERM was certified, but no I-140 has been filed yet

An approved labor certification expires if it is not filed with an I-140 within 180 calendar days of approval (20 C.F.R. § 656.30(b)(1)). The announcement, as reported, targets new and pending applications. It does not say what happens to certifications already issued. If you are in this window, ask your employer's immigration counsel today whether the I-140 is going in, and when.

4. Your I-140 is approved

This is the strongest position. An approved I-140 gives you a priority date that you can carry to a future employer's petition (8 C.F.R. § 204.5(e)(1)). You lose it only if USCIS revokes the approval for fraud or willful misrepresentation, a revoked or invalidated labor certification, or a material error (8 C.F.R. § 204.5(e)(2)). An I-140 that has been approved for 180 days or more also stays approved even if your employer later withdraws it (8 C.F.R. § 205.1(a)(3)(iii)(C)). If you are from a backlogged country, an approved I-140 also supports H-1B extensions in three-year increments (8 C.F.R. § 214.2(h)(13)(iii)(E)), and a new H-1B employer can rely on it.

5. Your green card application (I-485) has been pending 180 days or more

You may be able to change jobs and keep your case under the portability rule in INA § 204(j), as long as the new job is in the same or a similar occupation. This rule exists for exactly this kind of situation.

If You Are Thinking About Changing Employers

Many workers will ask whether they should leave. Sometimes moving is the right answer, but the order of steps matters:

• A new employer starts a new PERM. Your old PERM does not transfer. If you already have an approved I-140, you keep its priority date, so you do not go to the back of the line.
• Your H-1B moves with you. A new employer can file an H-1B petition and you can usually start work once it is filed. See our guide to H-1B transfers when changing jobs.
• Do not quit first. Your H-1B status is tied to your current job. A gap between employers creates risk that can be avoided with timing.
• Check your extension basis before you move. If you are past six years, the new petition has to rest on a qualifying PERM or I-140. Confirm which one before you resign.

Options That Do Not Depend on Your Employer

Some workers can file for a green card without employer sponsorship and without PERM at all. The two main routes are the EB-2 National Interest Waiver, for people whose work has substantial merit and national importance, and EB-1A, for people with extraordinary ability. These are demanding standards and they are not right for everyone. For engineers, researchers and specialists with publications, patents, or a record of significant work, they can be a real way around an employer's PERM problem. Both still require waiting for a visa number in your category and country.

If You Are on H-4: What This Means for Your Spouse's Work Permit

An H-4 spouse can qualify for a work permit in only two ways. The H-1B spouse must have either an approved I-140, or H-1B status extended past six years based on a pending green card process. If the H-1B spouse's PERM is frozen before an I-140 is approved, the H-4 work permit may not be available, or may not be renewable on time. The automatic extension of H-4 work permits also ended for renewals filed on or after October 30, 2025. See our H-4 EAD update for 2026 before your next renewal.

What Not to Do Right Now

• Do not assume your case is dead. A suspension is a pause. It can be lifted, and pending cases can still be decided on their merits.
• Do not resign or travel without checking your status, your extension basis and your visa stamp.
• Do not wait for your employer to call you. Ask HR and the company's immigration counsel for your PERM filing date, your I-140 status and your current H-1B end date, in writing.
• Do not pay anyone who promises to fix this. No one can lift a federal suspension for a fee. Be cautious with consultants who are not licensed attorneys.

For Lehigh Valley Employers Not on the List

The Labor Department has said it will keep using this suspension power against any employer, attorney or agent under investigation. If your company sponsors workers for green cards, now is a good time to make sure your recruitment records, job requirements and wage determinations would survive an audit, and that layoffs in the same occupation are handled correctly under the PERM rules. A clean file is the best protection against a suspension you never saw coming.

How Lehigh Valley Immigration Law Can Help

We help H-1B workers, H-4 spouses and employers across Allentown, Bethlehem, Easton and Eastern Pennsylvania map out their options when a green card case stalls. That includes reading your PERM and I-140 dates against the extension rules, planning a job change without a gap in status, and assessing National Interest Waiver and EB-1 eligibility. We work in English and Spanish. Call (484) 763-4984 or contact us online for a consultation.

The rules in this area move fast, and this suspension may change in the coming weeks. No lawyer can guarantee the outcome of an immigration case, but the right timing now can protect years of progress toward a green card.

Frequently Asked Questions

Which companies were suspended from the PERM program?

Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, announced on October 8, 2026. Cloudera (May 2026) and Cognizant (September 2026) had already been suspended in earlier actions.

Does this cancel my H-1B visa?

No. The suspension applies to PERM labor certification, the first step of an employment-based green card. Your current H-1B status is not cancelled by it. It can affect your ability to extend past six years if your PERM was filed less than a year ago or never filed.

How long will the suspension last?

No end date was announced. The regulation allows an initial suspension of up to 180 days, which can then be extended until the investigation or court proceedings are complete, or lifted for some or all applications.

If I change employers, do I lose my place in line?

Not if your I-140 is already approved. An approved I-140 gives you a priority date you can carry to a new employer's petition, unless the approval is later revoked for fraud, misrepresentation, a revoked labor certification or a material error. The new employer will still need to file a new PERM and I-140.

Can I apply for a green card without my employer?

Possibly. The EB-2 National Interest Waiver and the EB-1A extraordinary ability category do not require employer sponsorship or PERM. They have demanding standards, so have your record evaluated before you rely on them.