Overview
- The Department of Labor announced on Thursday, October 8, 2026, that it will not accept new or process pending PERM permanent‑labor certification applications for Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
- Officials said the suspensions follow active investigations into alleged misuse of H‑1B, J‑1 and PERM processes and that the freezes will remain in place while probes continue.
- Labor Inspector General Anthony D’Esposito created a visa‑fraud strike team to coordinate probes, pursue alleged fraud and work with the Justice Department on potential prosecutions, and subpoenas have been served to nine universities under review.
- The action does not automatically cancel existing H‑1B work authorizations but blocks the PERM step that many employees use to obtain employer‑sponsored green cards, which could jeopardize workers nearing statutory H‑1B limits.
- Affected companies have disputed the agency’s characterizations—Microsoft says most recent filings were extensions or status changes and that it pays comparable wages—and the move is likely to prompt legal challenges, industry lobbying and diplomatic concern, especially from India.