Labor Department Suspends Microsoft, Adobe, and Six IT Outsourcing Firms From PERM Green Card Program Over Alleged Visa Fraud: What It Means for H-1B Workers
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What Happened: Eight Companies Barred From PERM
On October 8, 2026, the U.S. Department of Labor suspended Microsoft and Adobe from its Permanent Labor Certification (PERM) program. PERM is the program that helps skilled foreign workers obtain permanent residency in the United States.
The two tech giants were not alone. Six IT outsourcing firms were also suspended:
- Capgemini
- Cognizant
- HCL
- Infosys
- Tata Consultancy Services
- Wipro
Labor Secretary Keith Sonderling said the department would not accept or process new or pending permanent labor certification applications involving these companies.
Photo by US Department of Labor on Wikimedia Commons
The Alleged Visa Fraud and Federal Investigations
The suspensions are tied to alleged visa fraud. Sonderling said Adobe and Microsoft were suspended "due to multiple active federal investigations."
The matter may not end with administrative action. Attorney General Todd Blanche said criminal charges against companies or individuals are possible.
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The Scale of These Companies' Foreign Worker Programs
According to Sonderling, since 2009 these companies requested almost 3 million foreign workers. In that same period, by his account, they received over 230,000 H-1B visa approvals and over 100,000 permanent labor certifications.
The broader H-1B picture also helps explain why the outsourcing firms matter so much: according to The Associated Press, nearly three-quarters of approved H-1B visas go to workers from India.
Political Pressure: Vance Targets Microsoft
Vice President JD Vance singled out Microsoft for criticism, citing about 6,000 layoffs at the company in 2025. Vance claimed Microsoft replaced those workers with H-1B visa holders.
He said Microsoft would be denied the ability to apply for permanent residencies until it puts American workers first.
Microsoft's Response
Microsoft pushed back on the characterization of its hiring. The company said it submitted approximately 6,000 H-1B applications in the last fiscal year, and that 80% of those filings were to extend or change the status of existing employees.
According to Microsoft, its new-hire filings were for people already legally in the US, and were equal to about 1% of its US workforce.
What It Means for H-1B Workers at Affected Companies
For foreign workers employed by the eight companies, the most immediate point is that H-1B status itself is not suspended. Workers at affected companies can continue working on their current H-1B.
The suspension still has real consequences, however:
- Green card delays: Paused PERM cases can slow green card processes.
- Extension delays: H-1B extensions that rely on PERM cases may also be slowed.
How Long Will the Suspension Last?
No end date has been set for the suspension. The Labor Department can keep cases on hold until investigations and any court cases are finished.
With Attorney General Todd Blanche raising the possibility of criminal charges against companies or individuals, the outcome remains uncertain, leaving affected workers and employers waiting to see how the investigations unfold.