Overview
- The Department of Labor announced on Thursday, October 8, 2026, that it will not accept new or process pending PERM labor‑certification applications for Microsoft, Adobe and seven large IT outsourcing firms while investigations continue.
- Officials, led by Vice President JD Vance and Labor Secretary Keith Sonderling, said the suspensions respond to alleged fraud and misuse of H‑1B and PERM filings and cited company‑level figures such as roughly 6,000 Microsoft layoffs in 2025 alongside more than 6,000 H‑1B approvals.
- Labor Inspector General Anthony D’Esposito said subpoenas have been served to nine universities, including Harvard, Yale and Stanford, to probe alleged misuse of J‑1 exchange visas and possible impacts on wages and federally funded research.
- The action does not cancel existing H‑1B visas but it blocks a common employer route to green cards, creating uncertainty for workers—especially many Indian nationals at the named firms—and could affect those nearing H‑1B time limits.
- The suspensions are part of a wider push by the Task Force to Eliminate Fraud and follow DOL OIG investigations, DHS proposals such as steep OPT fees, and separate DOJ inquiries; industry groups warn of labor shortages and legal challenges are possible.