Immigration Crackdown 2026: DOL Suspends PERM Processing for Microsoft, Adobe & Major IT Firms

The U.S. Department of Labor (DOL) announced on October 8, 2026, that it is suspending both the acceptance of new PERM applications and the processing of pending PERM applications for a group of major technology and outsourcing companies. The named firms include Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL, and Capgemini. Administration officials cited alleged misuse of employment-based immigration programs and referenced ongoing investigations as the basis for the action. PERM labor certification is a critical step in the EB-2 and EB-3 green card process. Employers must demonstrate through a regulated labor market test that no qualified U.S. workers are available for the position and that hiring the foreign national will not negatively impact U.S. workers' wages or conditions. DOL oversees PERM, while USCIS separately adjudicates the subsequent Form I-140 immigrant petition. The legal authority for the suspension stems from 20 C.F.R. § 656.31(b), which allows DOL to pause PERM processing when investigating potential fraud or willful misrepresentation. An initial suspension period can last up to 180 days, but may be extended if an investigation or judicial proceeding remains unresolved. Importantly, the announcement does not constitute a final finding of wrongdoing against any of the named companies. For EB-3 applicants and employers not on the named list, this suspension does not directly affect their cases. However, it signals a heightened enforcement posture from DOL, particularly for companies that have undergone recent reductions in force. Employers should review pending PERM filing deadlines carefully and seek case-specific legal advice rather than assuming automatic resumption of processing after six months. Key developments to monitor include DOL's formal written notices detailing which entities and applications are covered, the specific duration of each suspension, and any administrative or court challenges that may follow. Additional agency action could potentially affect the status of already-approved labor certifications or other immigration benefits tied to the named companies.