PERM Suspended: Microsoft, Adobe & 8 Tech Giants Barred from Green Card Sponsorship 2026

On October 8, 2026, the Trump Administration took the unprecedented step of suspending eight major technology companies—Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini—from filing Permanent Labor Certifications (PERM) with the U.S. Department of Labor. The DOL simultaneously announced it would halt processing of all pending PERM applications tied to these firms, dealing a significant blow to their foreign national workforces pursuing green cards. The PERM labor certification is a mandatory first step in most employment-based green card processes, including EB-3 and EB-2 categories. It requires employers to obtain a Prevailing Wage Determination, conduct recruitment to verify no qualified U.S. workers are available, and file a PERM petition before sponsoring an employee for an I-140 petition with USCIS. Without this pathway, affected H-1B workers at these companies face losing work authorization after six years—unless they already have an approved I-140, which grants three-year extensions for nationals of oversubscribed countries like India, China, and the Philippines. Vice President J.D. Vance justified the suspensions by citing Microsoft's layoff of 6,000 U.S. workers while simultaneously receiving 6,300 H-1B approvals and nearly 3,000 green cards. The administration has framed the H-1B program as rife with abuse, alleging sponsored workers are paid up to $20,000 less than U.S. counterparts. Microsoft disputed these claims, stating 80% of its H-1B filings were for existing employees, and that it pays H-1B workers the same wages as comparable U.S. employees. For EB-3 applicants currently employed at or considering positions with these eight companies, this suspension creates immediate uncertainty. Pending PERM applications may be frozen indefinitely, and new sponsorships cannot begin until the suspension is lifted. Workers in the pipeline should consult immigration counsel to assess their I-140 status and whether alternative visa strategies are available. Experts compare this action to the Apple and Google PERM discrimination settlements from roughly five years ago, which imposed financial penalties but did not permanently end labor certification sponsorship. Businesses that regularly sponsor foreign nationals are advised to conduct internal compliance reviews to ensure their recruitment processes, prevailing wage submissions, and H-1B documentation meet all current standards—before facing similar government scrutiny.