Overview
- The Department of Labor said it stopped accepting new and stopped processing pending PERM labor‑certification applications involving eight firms, a move announced on Oct. 8 that officials tied to investigations of possible fraud or misrepresentation under 20 CFR § 656.31(b).
- PERM is the employer certification needed for most EB‑2 and EB‑3 green‑card cases, so the pause does not cancel H‑1B visas but does block a primary path to permanent residency and may delay applicants already in a long employment‑based backlog.
- Several named companies, and nearby firms, have publicly downplayed business harm by noting limited PERM volumes and local hiring; Tech Mahindra said it had not received a suspension notice and reported that fewer than 1% of its employees hold H‑1B visas.
- Labor lawyers warned the action is a processing suspension rather than a final debarment, that it can last initially up to 180 days under the regulation, and that employers may respond with compliance reviews or legal challenges while agencies continue investigations.
- Beyond corporate effects, analysts highlight human costs for predominantly Indian applicants who face years‑long waits for green cards and say the episode could accelerate shifts in staffing models such as more offshore delivery and greater local hiring in the U.S.