DOL Suspends Microsoft, Adobe, and Six IT Firms From PERM

What Happened

On October 8, 2026, at a White House event alongside Vice President J.D. Vance, U.S. Secretary of Labor Keith Sonderling announced that the Department of Labor is suspending eight major technology employers from the [Permanent Labor Certification Program](https://www.cnbc.com/2026/10/08/microsoft-adobe-green-card-labor-suspension.html) (PERM): Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Capgemini, Microsoft, and Adobe.

“I am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world — Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini,” Sonderling said, adding that DOL is also suspending [Microsoft and Adobe due to multiple active federal investigations](https://www.thehindu.com/news/international/ussuspends-microsoft-adobe-and-major-it-firms-from-perm-green-card-programme/article71560826.ece). “We will not accept any new or process any pending permanent labour certification applications involving these companies.”

Sonderling stated that since 2009 the named companies have collectively requested almost three million foreign workers, received over 230,000 H-1B visa approvals, and obtained over 100,000 permanent labor certifications. The announcement alleged misuse of employment-based immigration programs but did not announce criminal charges or final findings of wrongdoing against any of the employers.

The move extends an enforcement pattern that began in September, when DOL-OIG [suspended Cognizant's PERM filings](https://www.shrm.org/topics-tools/news/talent-acquisition/microsoft-adobe-perm-suspensions) amid a fraud investigation. Legal practitioners note that the suspension rests on DOL's existing regulation, [20 C.F.R. § 656.31(b)](https://wolfsdorf.com/dol-announces-perm-suspensions-for-microsoft-adobe-and-major-it-firms/), which permits suspending PERM processing during investigations into possible fraud or willful misrepresentation.

Who's Affected

The suspension applies to the labor certification stage of the employment-based green card process. PERM is the market-testing prerequisite most EB-2 and EB-3 petitions must clear before an employer can file an I-140 with USCIS. With DOL refusing new filings and holding pending applications involving the eight employers, beneficiaries of those companies' PERM cases face an indefinite pause on the front end of the EB-2 and EB-3 pipeline.

The affected population is large. The six outsourcing firms plus Microsoft and Adobe account for a substantial share of all H-1B petitions and PERM filings in the technology sector, and the suspension lands hardest on Indian and Chinese nationals already facing multi-year EB-2 and EB-3 backlogs, where any delay in securing a priority date compounds the wait.

The freeze does not extend to employers outside the named eight, and it does not by itself revoke approved labor certifications, approved I-140s, or green cards already issued. The announcement is limited to new and pending PERM applications involving the named companies.

What Attorneys Should Know

First, distinguish allegation from finding. The October 8 announcement cites active investigations, but no final adjudication of wrongdoing was announced. Practitioners counseling affected employers should treat the suspension as a processing freeze, not a debarment, while confirming the precise scope in DOL's written notices.

Second, mind the clock. Under 20 C.F.R. § 656.31(b), an initial suspension tied to a fraud investigation may run up to 180 days and can be extended while the investigation or a judicial proceeding remains unresolved. Filing strategies that assume automatic resumption at six months are risky.

Third, audit the case portfolio. For beneficiaries of the named employers: confirm whether a PERM application is pending (processing now suspended), planned but unfiled (cannot be filed), or already certified (I-140 filing at USCIS is not blocked by this announcement). Priority-date preservation, age-out risk for derivative children, and the interaction with October 2026 final action dates all warrant case-by-case review.

Fourth, watch for follow-on actions. Prior enforcement steps in this campaign have included DOL-OIG's Project Firewall, per-employer suspension notices, and DOJ settlement activity. Separate agency action could change the treatment of approved certifications, so monitoring DOL and court filings matters more than usual this quarter.

What Applicants Should Do

• Check where your case actually stands: a certified PERM keeps its value for I-140 filing, but a pending or unfiled PERM with one of the eight employers is now on hold.
• Talk to your attorney about whether an existing priority date can be preserved or reused, and document your case timeline carefully.
• Do not make abrupt status decisions — an approved H-1B, an approved I-140, or a green card already granted is not cancelled by this announcement.
• If your employer offers a transfer, evaluate the new sponsor's PERM situation before committing; the suspension highlights how employer-side enforcement risk can freeze your green card track.
• Expect uncertainty on duration — a 180-day initial window extendable during open investigations means no reliable resume date yet.

The Bigger Picture

The October 8 action is the broadest single PERM suspension on record, and it confirms that the H-1B-to-green-card pathway is now a primary enforcement target. For a workforce concentrated in EB-2 and EB-3 categories with severe per-country backlogs, an employer-side freeze translates directly into lost priority dates and extended separations from permanent residence. Firms advising technology employers should factor the possibility of additional named employers into contingency planning.