The US PERM suspension announced October 8, 2026, affects Microsoft, Infosys, TCS, Adobe and four other technology companies. The restrictions halt new and pending labor certification processing, potentially delaying employment-based green cards for Indian H-1B workers.

The Trump administration announced on Thursday, October 8, 2026, that eight major technology companies would be suspended from the US Permanent Labor Certification Program (PERM), citing alleged immigration program abuses.

The companies are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini.

Why Microsoft and other tech firms face suspension

Vice President JD Vance accused Microsoft of misusing immigration programs while laying off American workers and sponsoring foreign employees.

The administration said its action was intended to protect US employment opportunities and prevent alleged misuse of foreign-worker programs, including H-1B visas.

The accusations remain allegations, not established findings of wrongdoing.

What changes for PERM green card applications?

Labor Secretary Keith Sonderling said the Department of Labor would stop accepting new PERM applications and processing pending labor certification cases involving the eight companies.

PERM is generally required for employers sponsoring foreign workers for permanent residency through employment-based EB-2 and EB-3 categories.

The process requires employers to demonstrate that qualified US workers are unavailable for specific positions and that hiring foreign workers will not adversely affect US wages and working conditions.

Impact on Indian H-1B workers

The suspension could delay employment-based green card sponsorship for Indian professionals and other foreign employees at the affected companies.

However, the PERM restrictions do not automatically revoke existing H-1B visas, previously approved I-140 petitions or issued green cards.

Workers awaiting labor certification face uncertainty over when their applications can proceed.

Microsoft response and next steps

Microsoft has defended its hiring practices, saying most of its H-1B filings involve existing employees rather than newly recruited foreign workers.

The administration has not established a public timetable for lifting the PERM suspensions. Further clarification from the Department of Labor will determine how affected employers can resume processing and what happens to applications already awaiting decisions.