US PERM Suspension (October 2026): Microsoft, Adobe, TCS, Infosys — What It Means for Your Green Card

Updated: 11 October 2026 · 9 min read

Search for news about the US PERM suspension October 2026 and you will find alarming headlines about “green cards frozen” — and very little calm explanation of what actually changed. That gap matters, because thousands of technology workers woke up on October 9 unsure whether their jobs, their visas, or their futures in the United States had just been cancelled. They had not. But something real and serious did happen to their green card timelines, and it deserves a clear, factual breakdown.

This guide gives you exactly that: what was announced on October 8, what PERM is and why it is the front door of the employment-based green card process, the eight companies affected, who is genuinely affected and who is not, the parallel university investigations, and the practical steps employees and employers should take now. Everything below is based on the public statements made by US officials and reporting from multiple established news outlets.

What exactly happened on October 8, 2026?

At a White House announcement, Vice President JD Vance — who heads the administration’s Anti-Fraud Task Force — appeared alongside Labor Secretary Keith Sonderling to announce an enforcement action against alleged misuse of employment-based immigration programmes.

The core of the announcement was simple and unusually blunt. The Department of Labor is suspending eight companies from the Permanent Labor Certification programme, known as PERM. In the Labor Secretary’s own words, the department will not accept any new permanent labour certification applications from these companies, and it will not process the applications that are already pending either.

That second part is what makes this more serious than a routine audit. A pause on new filings is disruptive. A freeze on pending filings means employees who have already been waiting months in the queue — whose employers completed recruitment, filed paperwork and paid legal fees — are now stuck in place with no timeline for when their cases move again.

Officials also confirmed that investigations connected to visa fraud are running in parallel, including probes involving nine American universities over the J-1 exchange visitor programme. Subpoenas have reportedly been issued, and a dedicated strike team is handling the cases.

The 8 suspended companies

The suspension covers the following employers:

• Microsoft
• Adobe
• Tata Consultancy Services (TCS)
• Infosys
• Wipro
• HCLTech (HCL Technologies)
• Cognizant
• Capgemini

It is a striking list because it mixes two worlds: American tech giants (Microsoft and Adobe) and the large Indian IT services firms that employ tens of thousands of H-1B professionals in the United States. For Indian technology workers in particular — who make up the largest share of employment-based green card applicants — this is the most significant employer-side disruption to the green card pipeline in years.

What is PERM, and why does it matter so much?

PERM is the first major step in most employment-based green card cases (the EB-2 and EB-3 categories). Before a US employer can sponsor a foreign worker for permanent residence, the Department of Labor must certify that there are no qualified, willing and available US workers for the job, and that hiring the foreign worker will not hurt the wages and working conditions of American workers.

To get that certification, an employer must run a genuine recruitment process, advertise the role, review applicants, and then file the PERM application (Form ETA-9089) with the Department of Labor. Only after PERM is approved can the employer file the I-140 immigrant petition with USCIS, and only after that can the employee eventually apply for the green card itself when their priority date becomes current.

In other words, PERM is the front door of the employer-sponsored green card process. If the front door is locked for your employer, everything behind it — the I-140, the priority date, the eventual green card — cannot even begin. That is why a PERM suspension, even a temporary one, creates such anxiety: for many workers, especially those born in India who already face years-long queues, any additional delay compounds an already long wait.

Why did officials take this action?

The administration framed the move as an anti-fraud and worker-protection measure. According to the figures cited by officials at the announcement, the eight companies together have requested nearly three million foreign workers since 2009, received more than 230,000 H-1B approvals, and obtained over 100,000 permanent labour certifications.

Microsoft was singled out by name. Officials stated that the company laid off around 6,000 US workers while holding roughly 6,300 H-1B visas and filing more than 3,600 PERM applications. The Vice President’s message to the company was direct: it is a great American company, but it has to hire great American workers.

It is important to be precise here: these are the government’s allegations and stated reasons, and the investigations are ongoing. The companies concerned have not been found guilty of anything at this stage. Microsoft, for example, has previously pushed back on characterisations of its hiring practices, noting that a large share of its H-1B filings relate to existing employees rather than new hires. TCS, reporting quarterly results on October 9, said it did not expect the suspension to have a material impact on its workforce strategy or client work. The full picture will only emerge as the investigations conclude.

The accuracy box: what this suspension does NOT do

Headlines about “green cards frozen” travel fast, and some coverage has blurred the lines. Here is what the October 8 action does not do, based on the announcement itself and consistent reporting:

• It does not cancel H-1B visas. If you hold valid H-1B status with one of the eight companies, your status and your right to work are unchanged.
• It does not revoke anyone’s existing immigration status. Nobody is being put out of status by this announcement.
• It does not cancel approved I-140 petitions or granted green cards. Cases that already passed the PERM stage are not undone by a PERM suspension.
• It does not apply to other employers. Companies outside the list of eight can continue filing PERM applications as normal.
• It is not a rejection of pending cases. Pending PERM applications are frozen, not denied. A frozen case can, in principle, resume if and when the suspension is lifted.

What it does do is stop the clock at step one of the green card process for employees of these eight companies, for as long as the suspension lasts. The table below summarises the position:

Who is affected — and who is not

Directly affected: employees of the eight companies whose PERM had not yet been filed, or whose PERM is pending with the Department of Labor. Their green card sponsorship cannot move forward right now. New hires who were promised green card sponsorship as part of a job offer are also affected, because their employers cannot start the process.

Not directly affected: H-1B workers at these companies whose green card cases already have an approved I-140 (their place in line is based on that approval, not on new PERM filings); employees of every other US company; family-based green card applicants; and anyone applying for visas at US consulates abroad, which is a State Department process entirely separate from PERM.

In a grey zone: workers whose PERM was approved but whose I-140 has not yet been filed should speak to their employer’s immigration team promptly, because the practical handling of borderline cases during a suspension is exactly the kind of detail that needs case-specific confirmation.

The university investigations

The same announcement covered a second front: investigations into alleged J-1 visa fraud involving nine universities — Harvard, Yale, Stanford, Brown, MIT, Caltech, UC Davis, Arizona State and the University of Pittsburgh. Officials said a strike team has been formed and subpoenas issued.

For current J-1 exchange visitors and students, the key point is the same as with PERM: an investigation into an institution is not a cancellation of any individual’s visa or status. But anyone at one of these institutions with a pending J-1 matter should stay close to their programme sponsor’s official communications and avoid relying on rumours. As with the company suspension, allegations are not findings, and the investigations are ongoing.

What should employees do now?

If you work for one of the eight companies, panic is not a strategy — but passivity is not one either. These are the sensible steps:

1. Find out exactly where your case stands. Ask your employer’s immigration team or attorney one specific question: has my PERM been filed, and if so, when? Your position in this story depends entirely on the answer.
2. Protect your underlying status. Your H-1B (or other work status) is unaffected, but it still has its own deadlines. Extensions, amendments and travel plans should continue exactly as before — do not let the PERM news distract from a routine extension deadline.
3. Do not resign or change employers based on headlines alone. A job change has major immigration consequences — including, in many cases, restarting the green card process from zero. Get advice on your full picture first.
4. Keep your documents in order. Degree evaluations, experience letters, passport validity and prior status records matter in every scenario, including a future restart. Having a clean, complete file costs nothing now and saves weeks later.
5. Follow official sources, not forwards. The Department of Labor and USCIS publish changes formally. Social media summaries of this story have already produced misleading claims — including the false idea that H-1B visas were cancelled.

If you are an H-1B worker at an unaffected company, the practical lesson is different: this is a reminder of how dependent the whole green card journey is on your employer and on timing. Understanding your own case — your priority date, your category, your employer’s filing history — is the best protection against being blindsided by the next policy shift. Our USA visa tools can help you work through the basics of your situation before you speak to a lawyer.

What should employers do?

For the eight suspended companies, the immediate tasks are compliance and communication: cooperating with investigators, auditing their PERM and recruitment records, and — just as important — telling affected employees clearly where they stand, because silence is what turns a delay into a retention crisis.

For every other employer that sponsors foreign workers, this announcement is a warning shot about documentation quality. The cases that survive scrutiny are the ones where recruitment was genuine, records are complete, and filings match the reality of the job. Companies that treat PERM as paperwork rather than a legal attestation should expect that assumption to be tested.

How long will the suspension last?

Nobody outside the Department of Labor knows, and officials did not announce an end date. Suspensions tied to active investigations typically last until the investigation concludes or the company reaches a compliance agreement — a process that can take months. It is also possible for suspensions to be lifted company by company, at different times, as each case is resolved.

What employees should watch for: a formal notice from the Department of Labor’s Office of Foreign Labor Certification, statements from their own employer’s immigration team, and reporting from established news outlets — in that order of reliability.

FAQs: US PERM suspension October 2026

Does the PERM suspension cancel my H-1B visa?

No. The suspension covers the PERM labour certification step of employer-sponsored green cards at eight named companies. H-1B visas and H-1B status are not cancelled, revoked or frozen by this action, and affected employees can continue working exactly as before.

My PERM is already pending. Is it rejected?

No. Pending applications are frozen — the Department of Labor will not process them while the suspension stands — but frozen is not the same as denied. If the suspension is lifted, pending cases can resume processing from where they stopped.

My I-140 is already approved. Am I affected?

Based on the announcement, no. An approved I-140 means your case already passed the PERM stage, and your priority date position rests on that approval. The suspension stops new and pending PERM filings; it does not undo approvals that already exist.

Which companies are suspended from PERM?

Microsoft, Adobe, Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, Cognizant and Capgemini, as announced on October 8, 2026. The Department of Labor will neither accept new PERM applications from these employers nor process their pending ones during the suspension.

How long will the PERM suspension last?

No end date has been announced. Suspensions linked to active investigations usually last until the investigation concludes or a compliance agreement is reached, which can take months. Suspensions may also be lifted company by company at different times.

Can I switch to another employer to restart my green card?

Technically, changing employers usually means a new PERM with the new employer — and it has serious implications for your H-1B and any priority date retention. It can be the right move in some situations, but it should never be a reaction to a headline. Get case-specific legal advice first.

Do the university investigations affect my student or J-1 status?

Not directly. The investigations target the institutions’ handling of the J-1 programme; they do not cancel any individual student’s or scholar’s visa or status. If you are at one of the nine named universities, follow your programme sponsor’s official updates closely.

What should I do first if my employer is on the list?

Ask your employer’s immigration team one precise question: has my PERM been filed, and on what date? Everything about your position — frozen, not yet started, or safely past PERM with an approved I-140 — depends on that single answer.

The bottom line

The October 2026 PERM suspension is a serious disruption for employees of eight of the world’s biggest tech and IT employers — but it is a disruption to one step of one process, not the cancellation of anyone’s visa or status. If your employer is on the list, establish exactly where your case stands, protect your underlying status, and take advice before making any big move. If your employer is not on the list, treat this as the warning it is: in the current climate, the strength and cleanliness of your case file is what carries you through policy shocks.

For more US visa tools and calculators, browse the Visaora USA visa tools page.

Sources and further reading

• Deccan Herald — US suspends Infosys, TCS, Wipro, HCL and other IT firms from green card programme
• CXO Digital Pulse — US suspends eight IT firms from green card programme
• Sakshi Post — Will Indian employees be affected?
• TaxGuru — US freezes new and pending PERM applications of eight IT companies

Disclaimer: This article is general information based on public announcements and news reporting as of October 11, 2026. It is not legal advice. Immigration cases are fact-specific — if this development affects you, consult a qualified US immigration attorney or your employer’s immigration team for advice on your own case.

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