Thousands of technology workers and their families are trying to understand a sudden US immigration-policy change after the government said it would stop accepting new and processing pending permanent labor certification applications involving Microsoft, Adobe and several IT services companies. The announcement came on October 8, 2026, while Infosys responded publicly on October 10. The crucial distinction is that the suspension concerns the PERM labor-certification process, one part of employment-based permanent residence. It does not automatically mean that every affected employee has lost a temporary work visa or must immediately leave the United States.
Which companies are covered by the PERM suspension?
US officials named Microsoft and Adobe alongside major IT services businesses including Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Cognizant and Capgemini. The government said new and pending PERM applications involving these firms would not be accepted or processed under the announced suspension. Reports describe the action as part of an investigation into alleged misuse of foreign-labor programmes. Allegations should not be mistaken for final findings of wrongdoing against every company or individual employee. Any later narrowing, appeal or lifting of the suspension would need to be confirmed through official instructions.
What is PERM and why does it matter?
PERM is a labor-certification procedure administered by the US Department of Labor. In many employer-sponsored green-card cases, the employer must first show that an appropriate recruitment process has been conducted and that hiring the foreign national will not improperly displace available qualified US workers or depress applicable wages. A certified labor application is generally one stage before a worker can proceed through other required immigration steps. It is not itself a green card, a visa or a final decision granting lawful permanent residence.
Does this cancel existing H-1B visas?
The suspension described in the October announcement concerns PERM filings; it is separate from the rules governing an existing H-1B temporary-work petition or other lawful status. Therefore it is inaccurate to tell everyone employed at a named company that their visas have been revoked. Individual circumstances still matter greatly, including visa expiry dates, employer changes, extensions, family dependents and whether a petition is already at another stage. Employees should speak with their company's immigration counsel or an independent qualified lawyer for advice specific to their paperwork.
What about green-card cases that were already pending?
Officials said they would pause processing pending PERM matters involving the affected businesses, as well as new applications. That can mean delays at an early labor-certification stage even where an employee has already been working in the US for years. But workers should not assume every later-stage case is automatically reopened or rejected, because the announcement is not a case-by-case decision on previously approved petitions. Ask the sponsoring employer precisely which forms have been filed, which approvals are already issued and which upcoming deadlines apply to the worker's current immigration status.
What have the companies said?
Infosys said in its October 10 response that it does not anticipate a material business impact and would cooperate with the Labor Department and other US authorities. A corporate assessment of commercial impact is not the same as an assurance that no particular worker will face delays. Microsoft has disputed allegations that it systematically undermines US workers and said many of its visa filings concern existing staff. Reporting should present the government's claims and the companies' responses distinctly, rather than endorse either as a judicial finding.
Five practical checks for affected workers
First, get written confirmation of your case stage and priority date where applicable. Second, distinguish PERM certification from a pending immigrant petition or adjustment application. Third, check the validity of your existing work authorization and any approaching extension deadlines. Fourth, avoid paying unknown agents promising to 'unlock' a case or guarantee an exception. Fifth, consult qualified counsel before resigning, changing employers or making international-travel plans. Immigration rules can change quickly, and general reporting cannot replace individual legal analysis.
What should employers and recruiters monitor next?
Employers should watch Labor Department releases, case-processing guidance, any company-specific appeals and the extent of the government's stated restrictions. For recruitment teams, the situation may affect planning for permanent sponsorship even where temporary work authorization remains intact. Workers outside the named companies should not automatically infer that the entire PERM system has been suspended nationwide. That broader conclusion is not supported by the reported action.
Frequently asked questions
Are all technology-sector PERM applications frozen?
The announced action concerns named companies. It should not be presented as a nationwide closure of every PERM filing.
Do employees need to leave the US now?
Not solely because of this PERM announcement. Lawful status depends on each person's separate immigration documents and deadlines.
How long will the suspension last?
A definite end date has not been established in the reporting available as of October 11; official updates are essential.