What Was Announced

On Thursday, 8 October 2026, US Labor Secretary Keith Sonderling announced that eight companies are being suspended from the Permanent Labor Certification Program, known as PERM. The named companies are Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Capgemini, Microsoft and Adobe. Reports say the department will not accept new PERM applications from them and will not process the ones already pending. Vice President JD Vance joined the announcement and criticised the H-1B system.

One point needs to be clear, because it has been widely mis-stated online: this is a suspension from PERM, not a ban on H-1B visas. Law-firm analysis of the announcement states that it covers PERM green card sponsorship, "not the H-1B or other visas."

PERM, H-1B and the Green Card: How They Connect

An H-1B is a temporary work visa. PERM is the Labor Department process in which an employer certifies that it could not find a qualified, willing US worker for a role. It is generally the first step toward sponsoring that worker for an employment-based green card; after it comes an I-140 petition with USCIS and, later, the green card application itself. As Vance put it, H-1B is how workers enter the US and PERM is how they stay.

What the Reports Say About Each Company

For Microsoft and Adobe, Sonderling cited "multiple active federal investigations." No specific reason was reported for the six IT outsourcing firms. Vance made strong claims about Microsoft, including that it laid off 6,000 US workers in 2025 while being approved for more than 6,000 H-1B visas and filing 3,682 PERM applications; these are his assertions as reported, not verified findings. Microsoft said it looks forward to giving the administration more details, that around 80 percent of its roughly 6,000 H-1B filings last fiscal year were extensions or changes for existing employees, and that it files H-1B petitions only for people who meet the visa's standards. The other companies had not commented in the reports reviewed.

This is not entirely new. In early September, Indian media reported that the Labor Department's Inspector General announced a suspension of Cognizant's PERM filings over suspected visa fraud, hinting at wider action.

What Is Not Yet Known

• Duration: no end date has been reported.
• Legal basis: news reports do not state one. A law-firm analysis says reports point to a Labor Department regulation on suspending employers (20 CFR 656.31), but the department had not yet posted a written notice when it was written. The Cato Institute's David Bier has argued the department "cannot legally suspend a company that it has not proven has violated the rules."
• Approved cases: the announcement did not say what happens to PERM cases already approved but not yet filed as I-140 petitions.
• Further penalties: debarment, a ban of up to three years, is legally possible but has not been announced.
• Primary source: I could not locate an official Labor Department news release or notice for the October 8 action. This article therefore relies on news reports and law-firm analysis, and will need updating when an official notice appears.

What It Means for Workers at the Named Companies

According to law-firm analysis, people can keep working on their current H-1B while the suspension is in place. The risk is to the green card route:

• Pending PERM cases are on hold, and new ones cannot be filed. A worker's priority date generally comes from the PERM filing date, so delay can mean losing time in the queue.
• Recruitment timing can break. An employer generally must file within 180 days of its recruitment, so a freeze can force a repeat job search.
• Six-year H-1B limit: many workers need a PERM case on file to stay beyond the six-year maximum, so a freeze can still threaten status.
• Approved I-140s are a different step. USCIS handles them, and the suspension applies to PERM. An I-140 approved for at least 180 days usually keeps its priority date even if the employer later withdraws it.

The Wider Context: The $100,000 H-1B Entry Restriction

A separate White House proclamation signed on 18 September 2026 extended, for 12 months through 21 September 2027, a restriction on entry of certain H-1B workers unless the petition is accompanied by a $100,000 payment. It applies to workers outside the United States who need to enter to complete their petition, and the Homeland Security Secretary may exempt individuals, companies or whole industries. A law-firm summary notes that a federal court in Massachusetts vacated the agency guidance implementing the payment in June 2026 and that collection is currently paused, with guidance on any restart still pending. An accompanying executive order directs agencies to coordinate on H-1B oversight, including looking at employers' layoffs; analysts note it does not create a blanket ban on sponsorship by employers that have had layoffs.

What H-1B Holders Can Do Now

• Ask for your case status in writing from your employer's immigration team: where is your PERM, I-140 and priority date?
• Track your H-1B clock, especially if you are approaching the six-year limit.
• Watch the monthly Visa Bulletin for your category and country.
• Talk to an independent immigration attorney about options such as a job change or self-petitioned categories like EB-2 NIW or EB-1A, which skip PERM but need strong evidence and still depend on priority dates.
• Check dependants: a spouse's work authorisation can depend on your status, so ask how it is affected.

This is a fast-moving situation based on early reporting. It is general information, not legal advice; consult a licensed immigration attorney about your own case.

Sources and Further Reading

• The White House — Restriction on Entry of Certain Nonimmigrant Workers (18 September 2026)
• Ellis — Labor Department suspends Microsoft, Adobe and six IT firms from PERM
• CIO Dive — US authorities crack down on IT outsourcing
• Newsweek — Trump administration blocks tech companies from H-1B PERM programme
• Business Today — US suspends Infosys, Tata, Wipro, HCL, Cognizant
• National Law Review — September 2026 H-1B changes
• The Week — US suspends Cognizant from filing green cards