What the PERM Suspension at Microsoft, Adobe, and Six IT Companies Means for Employers and Employees

At a press conference on October 8, the Department of Labor announced that it has suspended PERM applications at eight companies: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. In announcing this, they cited federal investigations at Microsoft and Adobe. The announcement concerns these employers specifically. It is not a nationwide pause of PERM or a finding that any named company committed fraud. 

The announcement did not suspend the PERM program for all employers or announce a new, generally applicable recruitment rule. An employer that was not named should not assume any effects to their PERM cases. At the same time, every employer remains subject to the existing rules, audits, and potential investigation. 

What suspension means and why it is uncommon 

Suspension puts the affected PERM cases on hold. It is not a denial of those applications or a finding that an employer committed fraud. For the eight named companies, DOL announced that it would stop processing pending applications and would not accept new ones. Under the PERM regulations, DOL may suspend processing when there is an investigation for possible fraud or willful misrepresentation connected to the PERM program. An initial suspension under that provision can last up to 180 days. DOL may then resume some or all processing or extend the pause while the investigation continues. Suspension is also distinct from debarment, a separate action that requires written notice of grounds for debarment, such as willfully providing false or inaccurate information in a PERM application, a pattern or practice of failing to comply with the terms of the form, among other grounds. DOL has not publicly specified the legal basis or end date for each company’s suspension. 

This kind of pause is very uncommon because ordinary PERM oversight generally involves reviewing or auditing individual applications, not halting processing across an employer’s cases. The suspension provision addresses the more specific circumstance of an investigation into possible fraud or willful misrepresentation.  

What the PERM application actually requires 

The PERM application is typically the first step in an employment-based Green Card process. In this step, the employer must test the labor market for a specific permanent job opportunity and establish that there are not sufficient able, willing, qualified, and available U.S. workers for that position in the area of intended employment. The process also protects the wages and working conditions of similarly employed U.S. workers. If the PERM application is certified, the employer then files an immigrant petition with USCIS. 

The DOL press conference, with comments made by Vice President JD Vance, incorrectly reduced PERM recruitment to an advertisement in a newspaper. That is not an accurate description of the requirements for a professional position. For example, for a professional position (that requires a bachelor’s degree), an employer generally must place an order in the state unemployment agency, place two newspaper advertisements, and use three additional recruitment methods, such as an employer website, a job-search website, or a job fair. Employers must evaluate applicants under the applicable job-related standards and document their recruitment results.  

Layoffs require careful, fact-specific review. If the sponsoring employer has laid off workers in the area of intended employment during the six months before filing a PERM application in the same or a related occupation, the regulation requires the employer to notify and consider all potentially qualified laid-off U.S. workers and document the results.  

What employers and sponsored employees should do now 

Employees of the named companies with pending or planned PERM cases should seek individualized advice about filing and processing, immigration-status deadlines, and whether any other immigrant category may be available. The PERM announcement did not announce a suspension of H-1B processing or loss of existing H-1B status. It also does not apply to other Green Card processes that do not require a PERM application, such as EB-2 NIW petitions or EB-1A extraordinary ability cases. Employees should review their own status, petition history, and filing deadlines with counsel. 

Employers not named in the announcement should continue assessing each case under the existing PERM rules rather than impose a blanket pause solely because of this news. They should ensure job requirements match the actual position, preserve recruitment records, evaluate U.S. applicants fairly, and review relevant layoffs before filing. A substantial layoff or other material change in the hiring landscape may warrant a fresh case-specific assessment. 

This article is intended for general information purposes only and does not constitute legal advice. If you have specific questions about filing a PERM application, please contact our office at (312) 427-6163 or schedule a consultation online to discuss with one of our experienced immigration attorneys.