The U.S. Department of Labor (DOL) has announced significant restrictions on PERM labor certification filings involving eight major technology and IT services companies, including Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, and Capgemini. Announced on October 8, 2026, the restrictions suspend the acceptance of new PERM applications and the processing of pending applications involving these employers. The action forms part of the government’s increased scrutiny of employment-based immigration programs, particularly concerning recruitment practices and the protection of employment opportunities for U.S. workers.

PERM labor certification is a critical first step in many EB-2 and EB-3 employment-based green card applications. Employers must demonstrate that there are no sufficient qualified, available, and willing U.S. workers for the offered position and that hiring a foreign worker will not adversely affect U.S. workers’ wages and working conditions. Under 20 CFR § 656.31(b), the DOL may suspend PERM processing during investigations involving potential fraud or willful misrepresentation. Such suspensions may initially last up to 180 days and can be extended while investigations continue. These restrictions do not automatically invalidate existing H-1B visas, approved PERM certifications, or I-140 petitions.

The suspension could significantly affect foreign professionals employed by these companies, particularly H-1B workers pursuing permanent residency. Employees awaiting PERM filing or approval may experience delays in their green card process, potentially affecting their ability to qualify for extensions beyond the standard six-year H-1B limit. Under the American Competitiveness in the Twenty-First Century Act (AC21), certain H-1B employees may qualify for extensions based on qualifying labor certification or immigrant petition filings pending for the required period, or on approved I-140 petitions where immigrant visas remain unavailable. On October 16, 2026, the government also announced a separate settlement involving Cloudera, which included a two-year PERM debarment, highlighting increased federal enforcement of employment-based immigration requirements.

Employers and affected employees should proactively review their immigration timelines, pending applications, and available alternatives to avoid disruptions to lawful immigration status. Particular attention should be given to H-1B expiration dates, PERM filing deadlines, approved I-140 petitions, and eligibility for AC21 extensions. While the announced restrictions concern specific employers and do not constitute a nationwide ban on PERM filings by IT companies, they signal increased government oversight of employment-based immigration sponsorship. Companies should ensure strict compliance with recruitment and labor certification requirements, while foreign workers should consult their immigration attorneys to assess the impact on their individual green card applications.

Official Sources

1. White House – October 8, 2026 Press Conference on Visa Fraud
2. U.S. Department of Labor – PERM Labor Certification Program
3. 20 CFR § 656.31 – Suspension and Debarment Regulations
4. 8 CFR § 214.2 – H-1B Extension Regulations
5. U.S. Department of Justice – October 16, 2026 Cloudera Settlement