US Suspends PERM Labour Certification for Microsoft, TCS, Infosys and Five Other Firms

The US suspended eight companies from the PERM labour-certification process on 8 October 2026, according to the supplied reports. The companies are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL and Capgemini. As of 9 October 2026 the suspension is ongoing, and no end date has been reported. It matters because PERM is usually the first step towards an employment-based green card, so the move affects the permanent-residence route for foreign workers at these firms.

What happened and when

US Labour Secretary Keith Sonderling announced that the Labour Department would not accept new PERM applications involving these companies or process their pending ones. Vice President JD Vance joined the announcement. GKToday dates the suspension to 8 October 2026 and publishes its report on 9 October 2026. The Sacramento Bee carries a Reuters report published on 8 October 2026 that describes the action as taking place on Thursday.

Why PERM matters

What PERM does

PERM is the US Department of Labour's labour-certification process. For many employment-based green-card cases, an employer must show that no sufficient able, willing, qualified and available US workers exist for the job. It must also show that hiring a foreign worker will not harm the wages and working conditions of similar US workers. In applicable categories, this certification generally comes before the employer files an I-140 immigrant petition.

How it differs from H-1B

An H-1B is a temporary work visa for specialty occupations. Permanent residence is a separate status. The suspension targets the green-card pipeline for these employers. The reports do not say it ends H-1B employment for people already holding the visa.

Reasons given by the administration

The administration cited alleged visa-system abuse, fraud and displacement of American workers. Sonderling said the named firms had together sought almost three million foreign workers since 2009, received over 230,000 H-1B approvals and obtained over 100,000 permanent labour certifications. Vance said some companies post ineffective job advertisements and then cite a lack of applicants to justify hiring lower-paid foreign workers. He said the aim was to change hiring practices.

Microsoft and the response so far

Vance singled out Microsoft, citing 6,000 US layoffs last year alongside H-1B approvals and green-card activity. Microsoft said about 80% of its H-1B filings in the last fiscal year were extensions or changes of status for current employees. It also said it pays H-1B employees the same as others doing comparable work. Nasscom said Indian tech companies in the US had significantly reduced their reliance on H-1B visas and that relatively few of their workers sought green cards through PERM. Several other firms did not immediately comment, and TCS declined to comment.

Conflicts and gaps in the evidence

• Microsoft figures differ. GKToday reports more than 6,000 H-1B approvals and 3,682 PERM applications, nearly 1,000 of them for positions linked to laid-off workers. The Reuters-based report gives 6,300 H-1B visas and nearly 3,000 green cards. These are Vance's statements as reported, so treat the exact numbers cautiously.
• Duration is described differently. GKToday says no fixed end date was set. The Reuters-based report quotes Vance saying the suspensions would last as long as needed.
• Some details rest on one source. Only GKToday says Vance heads the US Anti-Fraud Task Force and that Microsoft and Adobe face multiple active federal investigations.
• The supplied material has no official Labour Department notice, no legal basis for the action and no report of a court challenge. It also does not say whether the companies can seek relief.

Related developments in the same reporting

The Reuters-based report says the US also opened probes into nine universities, including Harvard, Yale, Stanford, Brown and MIT, over alleged misuse of exchange-visitor visas. It adds that subpoenas had been served. It also mentions a one-time $100,000 fee on new H-1B petitions for workers hired from abroad, introduced by a White House proclamation. The report places the proclamation, and the Labour Department's "Project Firewall" enforcement drive, in September of the previous year.

Exam-relevant context

This is useful background for International Relations and current-affairs preparation, particularly India–US economic and diaspora issues, the IT services sector and migration policy. Core terms to remember:

• PERM is a US Department of Labour labour-certification process.
• H-1B is a temporary, non-immigrant work classification.
• I-140 is an employer's immigrant petition in applicable employment-based categories.

This page does not suggest that any question on the topic will appear in an exam.

FAQ

Does the suspension cancel existing H-1B visas?

No, according to GKToday. It says existing H-1B visas and previously approved PERM certifications or I-140 petitions are not automatically revoked.

Which Indian IT firms are named?

Infosys, TCS, Wipro and HCL are named, alongside Cognizant, Capgemini, Microsoft and Adobe.

Is the suspension permanent?

The supplied evidence gives no end date and no confirmed duration. As of 9 October 2026 it is ongoing.