Status as of October 8, 2026. The U.S. Department of Labor says it will stop accepting new permanent labor certification applications and stop processing pending applications involving Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. The administration described the action as a suspension tied to ongoing investigations and did not announce an end date.

The federal government has frozen a major employment-based green card step for eight technology and IT services companies. Vice President JD Vance announced the suspension for Microsoft on October 8, while Labor Secretary Keith Sonderling said the Department of Labor would also stop new and pending PERM processing involving Adobe and six large outsourcing firms.

The action affects the Permanent Labor Certification process, commonly called PERM. It is not a cancellation of the H-1B program, a nationwide shutdown of PERM or an automatic revocation of existing visas or green cards.

Companies named in the announcement

The administration identified eight companies:

  • Microsoft

  • Adobe

  • Cognizant

  • Infosys

  • Tata Consultancy Services

  • Wipro

  • HCL Technologies

  • Capgemini

Sonderling said the department would not accept new permanent labor certification applications or process pending applications involving the named companies. Vance said Microsoft’s suspension followed an ongoing investigation. Officials did not release company-specific suspension orders, case numbers or a timetable for review during the announcement.

What PERM does in the green card process

For many employment-based immigrant cases, an employer must first obtain a permanent labor certification from the Department of Labor. The employer generally must test the U.S. labor market and show that there are not sufficient able, willing, qualified and available U.S. workers for the position and that hiring the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.

A certified PERM application is usually followed by an immigrant petition filed with U.S. Citizenship and Immigration Services. The labor certification is therefore a preliminary but essential step for many employer-sponsored green card cases.

What the freeze means for workers

The clearest immediate consequence is at the Labor Department stage. New PERM filings involving the named employers will not be accepted, according to the labor secretary, and pending PERM applications involving them will not be processed while the suspension remains in place.

The announcement did not say that current H-1B workers at the companies lose their status or work authorization. H-1B classification and PERM labor certification are different processes administered by different agencies. A worker’s H-1B approval does not by itself depend on a pending PERM application.

The government also did not say that already approved immigrant petitions or adjustment-of-status applications would automatically be revoked. Cases that have moved beyond the Labor Department may present different procedural questions, and the effect on a particular worker depends on the stage of the case and the sponsoring employer.

The suspension could still have serious timing consequences. Workers may face stalled sponsorship, missed employer timelines or uncertainty about extensions that depend on reaching particular milestones in the employment-based immigration process. The October 8 announcement did not provide a special filing procedure for affected employees.

What the administration alleges

Vance and Sonderling said the action was intended to address alleged abuse of employment visa and labor certification programs and to protect U.S. workers. Vance accused Microsoft of laying off U.S. employees while relying heavily on H-1B workers and employment-based green cards.

Those statements describe the administration’s allegations and policy position; they are not final adjudications that each named company violated the law. Microsoft said most of its recent H-1B filings involved extensions or status changes for existing employees and said it pays H-1B employees the same as comparable workers. Several other companies did not immediately provide public responses to Reuters.

What remains unclear

The government did not announce how long the suspensions would last, what standard would be used to lift them or whether affected employers would receive company-specific administrative proceedings. It also did not explain in detail how the department would treat a case filed by an affiliate, successor or outside staffing arrangement.

Because the action was announced during an active enforcement initiative rather than through a generally applicable regulation, later written orders, court challenges or agency guidance may clarify its scope. The status of the named companies and any pending cases should be treated as developing.

Frequently asked questions

Which companies are covered by the announced PERM freeze?

The companies named on October 8 were Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.

Does the announcement cancel H-1B status for current workers?

No. The announced action concerns the Labor Department’s permanent labor certification process. It does not itself cancel an existing H-1B approval or employment authorization.

What happens to pending PERM applications involving the named companies?

The labor secretary said the department would not process pending permanent labor certification applications involving the named companies. The government did not announce an end date for the suspension.

Official sources

Disclaimer: Factum Immigration provides general information, not legal advice. For guidance on an individual case, consult a licensed immigration attorney.