On October 8, 2026, the U.S. Department of Labor suspended eight major technology companies from the Permanent Labor Certification (PERM) program, halting their ability to sponsor new employment-based green cards while federal investigations continue. Labor Secretary Keith Sonderling announced the action at a Washington press conference, joined by Vice President JD Vance.
The suspended companies are Microsoft and Adobe, alongside six IT services firms: Tata Consultancy Services, Infosys, Wipro, HCLTech, Cognizant, and Capgemini. The department said it will not accept new PERM applications or process any pending permanent labor certification filings involving the named firms.
PERM is the mandatory first step for most employer-sponsored green cards in the EB-2 and EB-3 categories. Under the process, employers must demonstrate that no qualified, willing U.S. workers are available for a position before sponsoring a foreign national for permanent residency. Blocking PERM access interrupts a key stage of the green-card pipeline for workers at the affected companies.
Equally important is what the suspension does not do. It does not cancel H-1B visas or other current work authorization. Employees at the eight companies keep their legal status and right to work; only the green-card labor sponsorship track is affected.
Sonderling framed the action as a response to alleged misuse of foreign-worker programs, describing the six IT services firms as some of the largest IT outsourcing firms in the world. Government statements cited in media reports said the suspended employers have collectively requested nearly three million foreign workers since 2009, receiving more than 230,000 H-1B approvals and over 100,000 PERM certifications. Vance characterized the move as prioritizing American workers, citing what he called multiple active federal investigations into the companies' hiring practices.
Markets reacted in split fashion on the news. Adobe shares rose about 3.6 percent the same day, while Microsoft fell roughly 1.4 percent. Analysts cautioned that the immediate financial impact may be limited, with Ken Mahoney of Mahoney Asset Management telling Reuters the companies have time to adapt their workforce planning.
For the tech industry, the suspension adds a new compliance dimension to talent strategy at some of its largest employers. The freeze is open-ended while investigations proceed, and companies and workers awaiting green-card sponsorship will be watching agency guidance closely for what comes next.