PERM Suspension: US Suspends Eight Firms Including Microsoft, TCS and Infosys
The PERM suspension announced by the US Department of Labor on October 8, 2026 covers eight companies: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. The department will not accept new PERM applications from them and will not process pending ones. This is an announced administrative action. No end date has been stated, and a published written notice has not been confirmed.
What the PERM suspension stops
| Reading | Detail | Signal |
|---|---|---|
| Announced | October 8, 2026, by VP JD Vance and Labor Secretary Keith Sonderling | Announced policy |
| New PERM filings | Not accepted from the eight firms | Blocked |
| Pending PERM cases | Not processed while suspension lasts | On hold |
| H-1B status | Not suspended | Workers can keep working |
| End date | Not stated | Open-ended |
PERM, the Program Electronic Review Management system, is the first step in most employer-sponsored green cards. An employer needs a certified PERM application before it can file an I-140 petition with USCIS. The suspension therefore affects workers sponsored by the eight firms. It does not extend to other employers.
Why the administration acted
Officials said the companies misused the programme to replace American workers with lower-paid foreign workers. The Labor Secretary said Microsoft and Adobe were suspended because of multiple active federal investigations. The agencies and subject matter have not been disclosed. Reports note that no investigation has produced a finding of wrongdoing against any of the eight.
Amazon and Meta, among the largest H-1B sponsors, were not suspended. TCS said, according to a report, that it does not expect a material impact on its workforce strategy or client work, citing limited reliance on PERM and local hiring in the US.
Who is most exposed
PERM-dependent categories are most affected for workers of the eight firms: EB-3 requires PERM, and most EB-2 cases do. EB-1 and the National Interest Waiver do not need PERM.
Priti Suri, founder and managing partner of PSA, said the real exposure is narrower than headlines suggest. In her view, H-1B holders with an approved I-140 generally keep the ability to extend beyond six years. Those nearing the six-year limit without a PERM or approved I-140 are genuinely at risk.
Sanjay Laul, founder of MSM Unify, said workers with approved PERM can generally move to the next stage, while those with a pending or unfiled PERM effectively have no priority date. The priority date, which sets a worker's place in the green card line, generally comes from the PERM filing date. He added that switching employers means a new PERM filing.
Possible legal challenge
Suri said a corporate challenge may be the fastest route to relief, noting that administrative measures of this kind have proven vulnerable in court. She said the suspension should be read as one that may be lifted or stayed, but no one should plan on an early reversal.
