October 9, 2026

DOL Suspends Microsoft, Adobe, and Major IT Firms from PERM: What Employers and Foreign Professionals Need to Know

By Wendy R. Barlow, Esq. | Partner at Cohen, Tucker + Ades Specializing in Complex Immigration Matters

In an unprecedented enforcement action on October 8, 2026, the U.S. Department of Labor (DOL) announced the immediate suspension of eight major corporations—including tech giants Microsoft and Adobe, alongside IT service leaders Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, and Capgemini—from participating in the Permanent Labor Certification (PERM) program.

At Cohen, Tucker + Ades P.C., we understand that news of this magnitude creates immediate urgency across corporate HR teams, in-house counsel, and foreign talent networks. Below, our legal team breaks down what happened, what it means for affected workers and sponsors, how employers can avoid similar compliance pitfalls, and the broader legal shift transforming U.S. corporate immigration.

Direct Answer: Key Takeaways at a Glance

  • The Immediate Action: The DOL is temporarily halting the acceptance and processing of new and pending PERM labor certification applications submitted by the eight named employers.

  • Impact on H-1B Visas: This action does not automatically cancel current H-1B visas, nonimmigrant work authorization, or pending I-485 adjustment-of-status filings.

  • The Allegations: Government authorities cited enforcement probes into compliance surrounding recruitment practices, corporate layoffs, and prevailing wage standards.

  • Employer Priority: Companies must audit their recruitment workflows, layoff cross-notifications, and PERM filing timelines to avoid regulatory flags.

  • Employee Strategy: Affected foreign national workers should evaluate alternative pathways (such as EB-2 NIW or EB-1A) and AC21 portability options immediately.

Understanding the DOL PERM Suspension

What Prompted the Government’s Action?

The PERM labor certification process requires employers to test the U.S. labor market in good faith before sponsoring a foreign worker for an employment-based green card. The federal government’s action stems from heightened scrutiny linking corporate layoffs with ongoing employment-based sponsorship.

Federal officials pointed to instances where companies laid off domestic workers while continuing to sponsor foreign talent, alleging potential non-compliance with statutory recruitment requirements. While Microsoft and other affected companies maintain strict adherence to all statutory requirements, the DOL has temporarily paused processing pending further administrative review.

Who Is Affected?

The current directive applies strictly to the named companies.

                                  PERM SUSPENSION IMPACT
                                            │
        ┌───────────────────────────────────┴───────────────────────────────────┐
        ▼                                                                       ▼
   AFFECTED CASES                                                      UNAFFECTED CASES
   • New PERM Filings                                                  • Approved PERM Certifications
   • Pending PERM ETA 9089 Applications                                • Existing, Approved I-140 Petitions
   • Direct Submissions by the 8 Named Employers                       • Unnamed Third-Party Employers

FAQs for Sponsoring Employers and Affected Employees

How does this affect foreign nationals currently working at these companies?

If you are currently on a valid H-1B, L-1, or O-1 visa with one of these employers, your status remains lawful. The PERM suspension is an employment-based green card restriction, not a visa revocation.

Can affected companies still file H-1B visa extensions?

Yes. The announcement specifically targets PERM labor certification. However, employees approaching the end of their 6th year of H-1B status who relied on pending PERMs to secure 1-year H-1B extensions under AC21 may face significant timeline hurdles if those PERM applications are paused.

Are previously approved PERM certifications or approved I-140s revoked?

No standard blanket revocation was issued for previously certified PERM applications or existing I-140 immigrant petitions. However, individual filings remain subject to standard compliance checks and audits.

What options do affected workers have?

Workers caught in pending PERM processing can explore several proactive steps:

  1. Consider Alternative Green Card Categories: Explore self-petitioned pathways that bypass the PERM process entirely, such as the EB-1A (Extraordinary Ability) or EB-2 NIW (National Interest Waiver).

  2. Assess AC21 Portability: You may be eligible to change employers under AC21 porting rules if an I-140 is already approved and an I-485 adjustment of status has been pending for 180 days or more.

  3. Explore Employer Transfers: Transitioning to a non-affected employer via an H-1B transfer allows a new sponsor to initiate a fresh PERM process.

Strategic Guidance for Employers: How to Avoid Compliance Pitfalls

The DOL’s enforcement actions underscore that PERM program compliance is under continuous regulatory oversight. Corporate HR departments, in-house counsel, and talent acquisition teams should implement the following best practices to insulate their immigration programs from compliance flags:

1. Synchronize Layoff Records with PERM Filing Timelines

  • Cross-Departmental Auditing: Before initiating a labor certification or filing Form ETA 9089, immigration teams must cross-reference planned sponsorships against recent or anticipated corporate layoffs (including WARN Act notices and departmental restructurings) within the past 6 months.

  • Layoff Notification Requirements: If U.S. workers were laid off in the same or related occupation and geographic area, employers are required to notify and consider potentially qualified laid-off U.S. workers before filing PERM applications for foreign talent.

2. Standardize & Document Recruitment Practices

  • Avoid “Pro Forma” Recruitment: Ensure job postings, newspaper ads, and internal posting notices (NOI) strictly reflect actual corporate hiring practices rather than overly restrictive, candidate-tailored requirements designed solely for immigration compliance.

  • Maintain Comprehensive Recruitment Files: Audit and archive all recruitment records, including job descriptions, resumes received, interview notes, and legitimate job-related reasons for rejecting U.S. applicants. Keep these audit files readily accessible for the mandatory 5-year retention period.

3. Conduct Regular Internal PERM & Prevailing Wage Audits

  • Audit Labor Market Data: Periodically re-evaluate wage determination levels to ensure prevailing wage submissions accurately reflect actual job duties, experience requirements, and geographic wage standards.

  • Third-Party Compliance Review: Engage external legal counsel to perform routine internal audits of recruitment workflows, PERM documentation practices, and H-1B Labor Condition Application (LCA) compliance.

The Bigger Picture: A New Era of DOL Regulatory Compliance

This move signifies a structural shift in how federal agencies scrutinize employment-based immigration programs.

       HISTORICAL PERM FOCUS                       MODERN ENFORCEMENT PARADIGM
┌──────────────────────────────────┐            ┌──────────────────────────────────┐
│ • Procedural form checks         │            │ • Strict recruitment auditing    │
│ • Routine prevailing wage checks │   ──────>  │ • Cross-agency data matching     │
│ • Case-by-case processing        │            │ • Layoff vs. hiring cross-checks │
└──────────────────────────────────┘            └──────────────────────────────────┘

  1. Cross-Agency Oversight: Labor market testing is no longer evaluated in isolation. The DOL, Department of Justice, and Department of Homeland Security are actively cross-referencing corporate restructuring data, public layoff filings (WARN notices), and recruitment postings.

  2. Heightened Audit Risk for All Employers: Employers of all sizes must ensure their PERM recruitment procedures meticulously mirror real-world corporate hiring practices. Boilerplate recruitment records or deviations from standard HR practices will draw audits or supervised recruitment.

  3. Strategic Forward Planning Is Essential: Waiting until a foreign national’s 5th year of H-1B status to begin the PERM process is no longer viable. Unexpected administrative pauses make early initiation critical for maintaining long-term status.

How Cohen, Tucker + Ades Can Assist

Navigating sudden shifts in federal immigration policy requires experienced legal counsel. Whether you are an employer seeking to audit your PERM compliance framework or an affected employee exploring alternative visa pathways, our firm provides strategic guidance tailored to your specific goals.

Contact the experienced immigration attorneys at Cohen, Tucker + Ades P.C. today to schedule a confidential consultation.

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