The US government suspended eight technology and outsourcing companies from the Permanent Labour Certification Programme (PERM) on 8 October 2026. The companies named were Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL, Capgemini, Microsoft and Adobe. US Labour Secretary Keith Sonderling announced the measure with Vice President JD Vance, who heads the US Anti-Fraud Task Force.
PERM labour certification
PERM is the US Department of Labour’s process for labour certification in many employment-based permanent residence cases. An employer generally seeks certification by demonstrating that there are not enough able, willing, qualified and available US workers for the position, and that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed US workers. Certification is generally a step before an employer files an immigrant petition, such as an I-140 petition, in applicable employment-based categories.
Companies and stated grounds
The suspension means the US Department of Labour will not accept new PERM applications involving the named companies or process their pending applications. The administration cited alleged visa-system abuse, fraud and displacement of American workers as grounds for the action. Sonderling said the firms had collectively sought nearly three million foreign workers since 2009, received more than 230,000 H-1B visa approvals and obtained over 100,000 permanent labour certifications.
Vance accused Microsoft of misusing the system. He referred to 6,000 US worker layoffs at the company in 2025, more than 6,000 H-1B visa approvals and 3,682 PERM applications, nearly 1,000 of which he said concerned positions involving laid-off workers. Microsoft and Adobe were also described as being subject to multiple active federal investigations.
H-1B status and permanent residence
An H-1B visa permits eligible foreign nationals to work temporarily in specialty occupations in the US; it is distinct from lawful permanent resident status. The suspension does not cancel existing H-1B visas held by employees of the companies. It also does not automatically revoke previously approved PERM applications or I-140 petitions. The administration did not set a fixed end date for the suspensions.
Important Facts for Exams
- PERM is an acronym for Program Electronic Review Management, the US labour certification process used in many employment-based immigration cases.
- An H-1B visa is a temporary, non-immigrant work classification for eligible specialty-occupation employment in the United States.
- An I-140 petition is an immigrant petition filed by an employer for a foreign worker in applicable employment-based categories.
- The US Department of Labour administers the PERM labour certification process.
The suspension applies to new and pending PERM applications involving the named firms. Existing H-1B visas and previously approved PERM certifications or I-140 petitions are not automatically revoked by this action.
