Overview
- The Department of Labor announced on Thursday, October 8, 2026, that Microsoft and Adobe are barred from filing new or pending PERM labor-certification applications that lead to green cards.
- Labor Secretary Keith Sonderling said the department will also exclude large outsourcing firms such as Cognizant, Infosys, Tata, Wipro, HCL and Capgemini from the PERM process.
- Vice President J.D. Vance accused Microsoft of replacing U.S. staff with foreign hires and cited internal figures that it laid off about 6,000 Americans while using roughly 6,300 H-1B visas and nearly 3,000 permanent-resident petitions.
- Microsoft has disputed the claims, saying most H-1B filings were extensions or changes for existing employees and that it pays H-1B staff market-level wages, and industry groups warn the move will raise costs and limit access to specialized talent.
- The action comes alongside pending Department of Homeland Security proposals for large H-1B and OPT fees and is likely to prompt legal challenges and wider debate over tech hiring and U.S. competitiveness.