The Government Froze Green Card Sponsorship at Microsoft, Adobe and Six IT Firms. Here Is Who Is Exposed.

Accurate as of October 8, 2026

On October 8, 2026, at a White House press conference led by Vice President JD Vance, Labor Secretary Keith Sonderling announced that the Department of Labor is suspending eight employers from the permanent labor certification program, known as PERM: Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. "We will not accept any new or process any pending permanent labor certification applications involving these companies," the Secretary said. Officials cited multiple active federal investigations, and the Vice President said the suspensions would last "as long as it needs to."

PERM is the first step for most employment-based green cards. Without a certified labor certification, an employer cannot file the Form I-140 that puts a worker in line for permanent residence.

What was announced, stated precisely

The action. No new PERM filings from the eight employers will be accepted, and pending ones will not be processed. As of this writing, the Department of Labor has not published a written notice on its foreign labor certification announcements page, and none of the employers has been charged with a crime. The details below come from the officials' statements at the press conference as widely reported.

The stated basis. Officials alleged that employers certify they could not find qualified U.S. workers while running recruitment designed not to find them, and that some laid off U.S. workers while continuing to sponsor foreign workers. The Vice President said Microsoft laid off about 6,000 U.S. workers in the past year while benefiting from about 6,300 H-1B approvals and nearly 3,000 green cards. Secretary Sonderling said the eight companies together have requested almost 3 million foreign workers since 2009 and received more than 230,000 H-1B approvals and more than 100,000 labor certifications. These are allegations; Microsoft has said its H-1B wages are among the highest of all filers and that it will provide the administration more detail.

The enforcement backdrop. Attorney General Todd Blanche said the Justice Department is investigating companies that favor foreign workers over Americans, with possible criminal and civil consequences. The Labor Department's Inspector General announced a visa fraud strike team and subpoenas to nine universities over J-1 exchange visitor use.

The legal mechanism

The PERM regulation gives the Department of Labor this tool. Under 20 CFR 656.31(b), when the Department learns of possible fraud or willful misrepresentation involving an employer, it refers the matter for investigation and may suspend processing of any labor certification application involving that employer. The suspension can last up to 180 days at first and can then be extended until the investigation or any judicial proceedings conclude. Unless the investigating agency objects in writing, the employer is entitled to notice.

A suspension is not a finding. If there is no finding of fraud, the regulation requires the Department to decide each pending application on its merits. Debarment is a separate and later step under 20 CFR 656.31(f): a bar of up to three years, issued by written notice, with the right to seek review. None of the eight has been debarred.

Who is exposed

H-1B employees of the eight companies who are approaching six years. H-1B status is generally limited to six years. Two provisions allow extensions beyond that: one-year extensions when a labor certification application or Form I-140 was filed at least 365 days earlier, and three-year extensions for workers with an approved I-140 who are waiting on a visa number, under 8 CFR 214.2(h)(13)(iii)(D) and (E). A worker whose PERM was filed more than a year ago, or who already has an approved I-140, generally still has a path to extend. A worker whose PERM was never filed now cannot get one filed by this employer, and may run out of H-1B time.

Workers with pending PERM cases. Their cases are frozen for the length of the suspension, and their place in line, which depends on the priority date set by the filing, does not advance into an I-140 while the case sits.

Workers with certified PERMs or approved I-140s. Officials did not say these are affected, and the suspension as announced concerns labor certification applications. They are in the strongest position, but this is a fast-moving enforcement action; nobody should assume it cannot widen.

Everyone considering a job change. A worker can move to a new employer, which can start its own PERM. An approved I-140 generally lets the worker keep the earlier priority date. The new employer starts the labor market test from the beginning.

What every other sponsor should take from this

Most of our clients are not on that list. The message to them is still direct: the government is now treating PERM recruitment and layoffs as an enforcement question, not a paperwork question, and it is willing to use a processing freeze before any finding.

The rules that matter already exist. The recruitment steps in 20 CFR 656.17 must be a genuine test of the labor market, and when an employer has had a layoff in the area of intended employment within six months of filing, in the occupation or a related one, it must document that it notified and considered the laid off U.S. workers. A workforce reduction followed by PERM filings for similar roles is exactly the pattern officials described on October 8.

What to do

1. If you employ workers at, or placed through, one of the eight employers, inventory every sponsored employee: H-1B start date, months remaining toward six years, and whether a PERM or I-140 was filed or approved, with dates.
2. Prioritize workers within 18 months of six years with no PERM on file. Their options (a new sponsor, a different classification, a cap-exempt role) take time to build.
3. Every sponsor: audit PERM recruitment against 20 CFR 656.17. Keep the full recruitment report, every applicant's file, and the lawful, job-related reason each U.S. applicant was not hired.
4. Map layoffs against pending and planned PERM filings. Any reduction in the same area and occupation within six months triggers the laid off worker notice and consideration requirement.
5. Do not pause green card planning on headlines alone. For employers not named, nothing announced changes the rules; it changes the scrutiny.
6. Watch for the written notice. The regulation contemplates notice to each suspended employer; the text of that notice, and any Federal Register or OFLC announcement, will define the scope more precisely than the press conference did.

The same week

On October 7, the Department of Homeland Security released a proposed rule that would charge SEVP-certified schools $70,000 the first time they recommend a student for Optional Practical Training and $30,000 for each later recommendation, including STEM OPT extensions. It is proposed, not final, with a 30 day comment period running from Federal Register publication. Employers that hire from the OPT pipeline should expect schools to push that cost toward students and employers if it is finalized.

Authorities

• 20 CFR 656.31(b) (suspension of processing for possible fraud or willful misrepresentation), (d) (no finding of fraud), (f) (debarment of up to three years).
• 20 CFR 656.17 (recruitment and laid off worker requirements for PERM).
• 8 CFR 214.2(h)(13)(iii)(D), (E) (H-1B extensions beyond six years); AC21 sections 104(c) and 106(a).
• Statements of Vice President JD Vance, Secretary of Labor Keith Sonderling, Attorney General Todd Blanche and DOL Inspector General Anthony D'Esposito, White House press conference, October 8, 2026, as reported.
• DHS proposed rule on Optional Practical Training fees, Federal Register document 2026-20660 (proposed; not final).

This article is provided for general informational purposes only and does not constitute legal advice, nor does it create an attorney-client relationship. Immigration law and agency policy change frequently; the analysis above reflects our understanding as of the date noted. Readers should consult counsel regarding their specific circumstances.