DOL PERM suspensions (Microsoft, Adobe, and six IT firms)

DOL PERM suspensions (Microsoft, Adobe, and six IT firms)

On October 8, the U.S. Department of Labor announced it is suspending eight employers from PERM, the labor certification step behind most employment-based green cards: Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini.

On October 8, the U.S. Department of Labor announced it is suspending eight employers from PERM, the labor certification step behind most employment-based green cards: Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini.

News

News

News

Here is what was announced, what is still unclear, and what affected employees should be thinking about.

WHAT WAS ANNOUNCED

• Officials said DOL will not accept new PERM applications from these eight companies and will not process pending ones.

• Labor Secretary Sonderling cited "multiple active federal investigations" as the reason for suspending Microsoft and Adobe. For Cognizant, this is the second PERM suspension in a month, following a DOL Inspector General fraud probe announced in September.

• Vice President Vance said the suspension will last "as long as it needs to." No end date or path to reinstatement was given.

• Microsoft responded that most of its U.S. employees are Americans, and that about 80% of its roughly 6,000 H-1B filings last year were extensions or changes of status for existing employees.

WHAT IS STILL UNCLEAR

As of Friday morning, DOL has not published written guidance, and officials did not cite a legal authority. The likely authority is 20 CFR 656.31(b), which allows DOL to suspend processing of applications involving an employer under investigation for possible PERM fraud or willful misrepresentation. That rule calls for written notice to the employer and limits the initial suspension to 180 days, though it can be extended until the investigation concludes. Open questions include how already-certified PERMs will be treated and whether a PERM filed by a new employer is affected.

WHAT AFFECTED EMPLOYEES SHOULD KNOW

• A PERM suspension does not, by itself, change current H-1B status or work authorization.

• Not every green card requires PERM. EB-1A (extraordinary ability) and the EB-2 National Interest Waiver are self-petitions that skip labor certification entirely, so they do not depend on the employer.

• EB-1B (outstanding researchers) also skips PERM, but it requires an employer petition, so it is worth watching how USCIS treats filings from these companies.

• For workers nearing the six-year H-1B limit without a PERM on file, the O-1 visa can serve as a bridge for those who qualify while a green card strategy is rebuilt.

This is a fast-moving situation, and details may change once DOL publishes formal guidance. If you are affected, now is the time to evaluate whether a PERM-free pathway fits your profile.

***Disclaimer: This post is for general informational purposes and does not constitute legal advice. Every case is fact specific. Please contact our office to discuss how this decision may affect your individual situation.***

Here is what was announced, what is still unclear, and what affected employees should be thinking about.

WHAT WAS ANNOUNCED

• Officials said DOL will not accept new PERM applications from these eight companies and will not process pending ones.

• Labor Secretary Sonderling cited "multiple active federal investigations" as the reason for suspending Microsoft and Adobe. For Cognizant, this is the second PERM suspension in a month, following a DOL Inspector General fraud probe announced in September.

• Vice President Vance said the suspension will last "as long as it needs to." No end date or path to reinstatement was given.

• Microsoft responded that most of its U.S. employees are Americans, and that about 80% of its roughly 6,000 H-1B filings last year were extensions or changes of status for existing employees.

WHAT IS STILL UNCLEAR

As of Friday morning, DOL has not published written guidance, and officials did not cite a legal authority. The likely authority is 20 CFR 656.31(b), which allows DOL to suspend processing of applications involving an employer under investigation for possible PERM fraud or willful misrepresentation. That rule calls for written notice to the employer and limits the initial suspension to 180 days, though it can be extended until the investigation concludes. Open questions include how already-certified PERMs will be treated and whether a PERM filed by a new employer is affected.

WHAT AFFECTED EMPLOYEES SHOULD KNOW

• A PERM suspension does not, by itself, change current H-1B status or work authorization.

• Not every green card requires PERM. EB-1A (extraordinary ability) and the EB-2 National Interest Waiver are self-petitions that skip labor certification entirely, so they do not depend on the employer.

• EB-1B (outstanding researchers) also skips PERM, but it requires an employer petition, so it is worth watching how USCIS treats filings from these companies.

• For workers nearing the six-year H-1B limit without a PERM on file, the O-1 visa can serve as a bridge for those who qualify while a green card strategy is rebuilt.

This is a fast-moving situation, and details may change once DOL publishes formal guidance. If you are affected, now is the time to evaluate whether a PERM-free pathway fits your profile.

***Disclaimer: This post is for general informational purposes and does not constitute legal advice. Every case is fact specific. Please contact our office to discuss how this decision may affect your individual situation.***

Newsletter

Stay informed with legal insights

Receive thoughtful articles, legal updates, and practical guidance from our team — delivered directly to your inbox.

Newsletter

Stay informed with legal insights

Receive thoughtful articles, legal updates, and practical guidance from our team — delivered directly to your inbox.