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The US Department of Labor announced on October 8, 2026, that it will stop accepting new labor certification applications tied to eight employers. It will also suspend processing of pending ones. The DOL PERM suspension covers Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. Officials described the move as following an investigation into possible misuse of employment-based immigration programs.
What the DOL PERM suspension actually does
PERM, formally the Program Electronic Review Management system, is a required step for most EB-2 and EB-3 green card cases. An employer must complete it before filing the next-stage petition with US Citizenship and Immigration Services. Employers generally must show two things. First, that qualified US workers were unavailable for the role. Second, that hiring a foreign national will not harm wages or working conditions for comparable US employees. The Department of Labor runs this certification stage. USCIS handles the I-140 petition that follows.
A regulation, 20 C.F.R. § 656.31(b), gives the department this suspension power. It can suspend PERM processing for an employer connected to possible fraud or willful misrepresentation. It can also act against one under investigation by another federal agency. An initial suspension can run up to 180 days. After that, the department can resume normal processing, or it can extend the suspension while the underlying investigation continues.
How the suspension was announced
Vice President J.D. Vance announced the action at a press conference on October 8. DOL Inspector General Anthony D’Esposito confirmed that investigators had served subpoenas as part of the inquiry. Vance said the suspensions would last “as long as it needs to.” That language goes beyond the regulation’s built-in 180-day review point. Employment attorneys have criticized the open-ended wording. They argue it conflicts with how the suspension authority is meant to work.
The action builds on Executive Order 14431, which the administration signed September 18, 2026. That order directs three agencies, the State Department, Labor Department and Department of Homeland Security, to weigh a specific factor when reviewing H-1B applications. They must consider whether a sponsoring employer has conducted or planned layoffs of similarly situated US workers. The order also directs DOL’s Wage and Hour Division to review past labor condition applications that employers under scrutiny had filed.
What a suspension is not
A PERM suspension is not itself a finding of fraud. No court or agency has found that the named companies violated any law. The Labor Department has not made specific allegations publicly as of this report, either. If the investigation turns up no fraud, the department must still decide the suspended applications on their individual merits once processing resumes. If investigators do find fraud, the consequences escalate. The department can deny applications containing false statements. It can also bar a company from the PERM program for up to three years. Already-approved labor certifications stay in effect unless a separate revocation process opens, and none has as part of this announcement.
The suspension also leaves the H-1B status of current workers at the eight companies unchanged. What it removes, for now, is one of the main paths those workers have toward permanent residence. A pending or future PERM application simply cannot move forward while the employer remains on the suspended list.
What happens next for affected workers and employers
Employment attorneys are advising companies more broadly, not just the eight named firms, to take several steps now. They recommend reviewing recent layoffs alongside any pending H-1B or PERM filings. They also recommend auditing wage compliance and preparing for a possible subpoena or suspension notice. The Department of Labor is expected to send written notices to each named employer. Those notices should describe exactly which applications are covered and for how long. Those details were not fully public as of this report. Further enforcement actions against other employers look likely in the coming weeks and months, given the administration’s stated intent to expand the review.
Companies with pending H-1B petitions elsewhere in the economy are watching closely too. The same executive order gives agencies broad discretion to flag other sponsors for similar scrutiny.
More US immigration coverage
US work visa policy is moving on multiple tracks right now. See our reports on the status of the $100,000 H-1B fee, the proposed OPT fee for F-1 students, and the updated US public charge rule.
DOL PERM suspension: frequently asked questions
- Which companies are affected by the DOL PERM suspension? Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.
- When was the suspension announced? The Department of Labor announced the suspension on October 8, 2026, at a press conference led by Vice President J.D. Vance.
- How long can a PERM suspension last? An initial suspension can run up to 180 days, with the department able to extend it while an investigation continues.
- Does the suspension mean the companies committed fraud? No. A suspension is not a fraud finding. No specific violations have been alleged publicly as of this report.
- Does this affect workers’ current H-1B status? No. The suspension does not change current H-1B status, but it blocks a main path to permanent residence while it remains in effect.
- What executive order is connected to this action? Executive Order 14431, signed September 18, 2026, which directs federal agencies to scrutinize H-1B sponsors that have conducted layoffs.
Sources for this coverage
- Mayer Brown — DOL announces enforcement actions against employers in H-1B and PERM fraud probe. https://www.mayerbrown.com/en/insights/publications/2026/10/dol-announces-enforcement-actions-against-employers-in-h-1b-and-perm-fraud-probe
- Wolfsdorf Rosenthal — DOL announces PERM suspensions for Microsoft, Adobe, and major IT firms. https://wolfsdorf.com/dol-announces-perm-suspensions-for-microsoft-adobe-and-major-it-firms/
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