What the U.S. PERM Suspension Means for Workers

What is the PERM program?

PERM is short for the Labor Department’s Permanent Labor Certification program. It is a step an employer may use when seeking permanent, employment-based immigration status for a worker. The employer must show that there are no suitable U.S. workers for the permanent job opportunity. ¹

A green card is the common name for a U.S. permanent resident card. H-1B is a temporary work visa category; PERM can be an important step for some H-1B workers seeking permanent residence, but it is not itself a visa or a green card. ¹³

Which companies are affected by the suspension?

The Labor Department announced that it would not accept or process new PERM applications from Microsoft, Adobe, Cognizant, Infosys, Capgemini, Tata, Wipro and HCL. Reports describe Microsoft and Adobe as suspended in connection with active federal investigations. ¹²

The published accounts do not provide a full explanation of the process for adding each company to the restrictions or say whether the list could change. They also do not give a timetable for the suspensions. ¹²

Why did the administration suspend these companies?

Labor Secretary Keith Sonderling cited active federal investigations involving Microsoft and Adobe. The administration said it was examining possible fraud and whether foreign hiring had harmed U.S. workers. These are allegations and investigative concerns, not findings established in the reports. ¹²

Vice President JD Vance publicly singled out Microsoft, accusing it of abusing the system. The companies’ inclusion in the suspension does not by itself prove wrongdoing. Microsoft said it files H-1B petitions for people who meet that visa category’s requirements. ¹⁴

What could this mean for workers and employers?

For the affected employers, the stated restriction is that the Labor Department will not accept or process new PERM applications. For workers whose employer would use PERM as part of a green card case, that may interrupt or delay the start of that step. The reports do not spell out individual case effects, so the impact may depend on a person’s circumstances and the status of their application. ¹²

The reports do not say whether applications filed before the announcement will continue to be processed, whether other immigration routes are affected, or what workers should do next. A worker with a case in progress can ask their employer or an immigration professional about their specific situation; this explainer cannot determine an individual case’s status.

What is still unknown about the PERM restrictions?

The reports available as of October 9, 2026, do not provide the investigation findings, a final decision about alleged misconduct, or a date when the restrictions might end. They also do not clarify the treatment of pending applications. ¹²

The Labor Department’s announcement and official guidance are the best places to check for changes. Workers should rely on case-specific information from their employer or a qualified immigration professional rather than assume that the same outcome applies to every applicant.