Microsoft PERM Suspension 2026: What It Means for H-1B Workers and Green Cards
Quick answer — October 8, 2026: The U.S. Department of Labor has suspended Microsoft, Adobe and six large IT-services employers from the Permanent Labor Certification (PERM) program. Officials said they would stop accepting new PERM applications and stop processing pending ones involving the affected employers. This is a block on a crucial step toward many employment-based green cards. It is not an announcement that existing H-1B visas have been canceled. The difference matters to employees, applicants and families trying to understand what to do next.
The announcement came Thursday, October 8, amid federal allegations about the use of foreign-labor programs. The allegations are not the same as a finding of fraud against each company, and Microsoft has disputed the characterization of its hiring practices. This guide separates what officials actually announced from consequences that depend on an individual’s immigration stage.
What happened to Microsoft on October 8?
Vice President JD Vance and Labor Secretary Keith Sonderling announced that the government was restricting eight employers’ participation in the Permanent Labor Certification process. Reuters reported Sonderling’s statement that the Labor Department would not take new applications or process pending permanent labor certifications involving the named companies. See Reuters’ October 8 report and the Washington Post’s account.
Officials framed the action as an effort to protect U.S. workers and investigate possible abuses. Microsoft, responding in a statement cited by The Guardian, said it pays H-1B workers comparably to people doing similar work and that most of its recent H-1B filings concerned existing staff. The government’s accusations and the company’s response should both be reported, rather than presenting the allegations as proven facts.
Which eight employers are affected?
| Employer | Announced PERM position on October 8 |
|---|---|
| Microsoft | New applications not accepted; pending applications not processed |
| Adobe | Same announced restriction |
| Cognizant | Same announced restriction |
| Infosys | Same announced restriction |
| Tata / Tata Consultancy Services | Same announced restriction |
| Wipro | Same announced restriction |
| HCL | Same announced restriction |
| Capgemini | Same announced restriction |
The list reflects the employers named at the October 8 announcement, not every business currently using the H-1B program. The department’s statements concern permanent labor certifications; descriptions such as “all Microsoft work visas suspended” overstate the action. The initial public accounts did not specify an end date.
PERM versus H-1B: the distinction in plain English
H-1B is a temporary employment classification
The H-1B classification permits an eligible foreign professional to work in a qualifying specialty occupation under an approved petition and applicable rules. It is not itself a green card. An employer may continue to employ a worker in lawful H-1B status while a separate employment-based permanent-residency process is underway, provided that worker still meets the applicable requirements.
PERM is often an earlier step toward permanent residency
In many employment-based green-card cases, the employer first seeks a labor certification from the Department of Labor before petitioning U.S. Citizenship and Immigration Services. The department assesses whether there are sufficient qualified and available U.S. workers for the position and whether employing the foreign worker would harm prevailing wages or working conditions. The Department of Labor’s official PERM explanation details this step. It is legally distinct from H-1B status and from USCIS decisions on immigrant petitions.
Why a PERM pause is serious even when a visa remains valid
An employee who needs an employer’s PERM certification before proceeding with a green-card case may face a substantial delay. Timing can matter when a temporary work classification approaches an extension or maximum-stay question. Those outcomes depend on the worker’s own filing history, other petitions and the law applying to that case. A news headline cannot determine an individual’s lawful status or eligibility for an extension.
What changes for people at different stages?
| Your situation | What the announcement establishes | What still needs checking |
|---|---|---|
| Currently working on an approved H-1B | No blanket cancellation of existing H-1B visas was announced | Your petition, expiration date, employer and individual circumstances |
| Employer has not filed PERM yet | Affected employers’ new PERM submissions are blocked | Whether or when the restriction could be lifted |
| PERM filed but not decided | Officials say pending PERM applications involving these employers will not be processed | Case-specific status, agency notices and any later changes |
| PERM already certified | The announced pause is not, by itself, proof that an approval was revoked | Certification validity, immigrant petition stage and counsel’s review |
| I-140 or I-485 already pending | These are separate immigration filings; blanket cancellation was not part of the announced PERM action | USCIS notices, employer sponsorship and case-specific developments |
| Dependent family member | The news does not establish automatic cancellation of every dependent’s status | Principal worker’s status and the dependent’s individual filing dates |
This comparison is an explanation of the publicly announced scope, not individualized immigration advice. Do not assume that an unmentioned process is guaranteed to continue unchanged. Employers and case attorneys should review formal agency instructions as they become available.
What should affected employees do now?
Ask HR or immigration counsel for your exact stage
Make a dated record of your current petition status, work-authorization end date, filing receipts and any existing PERM certification. Ask your employer’s immigration team whether a PERM case was submitted, remains pending or has already been certified. An internal case number, rather than a company-wide headline, determines which questions apply to you.
Do not assume you must immediately stop working or leave
The announced suspension of employer PERM processing does not itself say that everyone holding an approved H-1B must stop work. Equally, it does not guarantee that every future transfer, extension or permanent-residency filing will be unaffected. Only a qualified adviser with your documents can examine status-sensitive deadlines, travel, dependents and possible alternatives.
Watch for agency instructions and employer-specific notices
Use authoritative sources such as DOL’s FLAG PERM program page, DOL’s foreign-labor program directory and USCIS case notices. News reports are valuable for learning of a policy shift, but should not replace official written instructions about a pending case.
Does this apply to all tech companies and university visas?
No. Eight named employers were included in the reported PERM action. Officials separately described investigations into the use of exchange-visitor visas at nine universities, including Harvard, Yale and Stanford. Those are distinct developments. An announced investigation is not proof that a university violated immigration law; it also does not automatically invalidate every J-1 visa.
For context on a different visa policy, AVARIXO previously explained the 2026 U.S. visa social-media screening changes. Those rules should not be confused with the October 8 PERM suspensions. Our October technology-layoffs explainer also covers separate workforce developments; neither story establishes fraud in these PERM cases.
What is still unknown?
As of this October 8 update, the initial reports do not provide a universal deadline for reinstating PERM access, a public case-by-case inventory of affected employees, or a single remedy that every worker can use. Officials have described alleged problems; those claims must not be treated as a court finding. Workers should also avoid viral claims that H-1B visas are universally “revoked” or that every previously approved green card is being canceled: those conclusions do not follow from the announced PERM restriction.
Frequently asked questions
Did the government cancel Microsoft employees’ H-1B visas?
No blanket cancellation was announced on October 8. The specific action described by officials concerned new and pending PERM labor certifications involving Microsoft and seven other employers.
Can Microsoft file new PERM applications now?
According to the October 8 Labor Department announcement, the agency will not accept new applications involving Microsoft while this restriction applies.
What happens to an already pending PERM?
Officials said pending PERM applications involving the named employers would not be processed. Check the actual filing with the employer’s immigration counsel for any subsequent notices or changes.
Are previously approved I-140 petitions automatically canceled?
The PERM announcement did not say that all previously approved USCIS immigrant petitions were automatically revoked. A worker must check their own petition and official notices.
How long will the Microsoft PERM suspension last?
No fixed public end date was established in the initial October 8 reporting. Treat specific dates on social media as unconfirmed unless the department issues formal guidance.
Which other companies are affected?
Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL and Capgemini were named alongside Microsoft.
Source note: This article compares the October 8 announcements reported by Reuters and The Guardian with the underlying program description at the U.S. Department of Labor. Featured image, if displayed, is archival Microsoft imagery, not a photograph of the October 8 government announcement. This article provides general information, not legal advice.
