DOL Suspends Eight Employers From PERM Labor Certification

On Oct. 8, Vice President JD Vance and Labor Secretary Keith Sonderling announced that eight employers have been suspended from the PERM program, the labor certification process that comes first in most employment-based green card cases. The named employers are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL, and Capgemini.

This is a targeted action against specific employers. Reporting so far does not indicate that any other employer is affected, and PERM rules have not changed. Many details have not been published, including how long the suspension will last. Boundless is monitoring the situation, and this article will be updated as new information is confirmed.

What did the Department of Labor announce?

The Department of Labor (DOL) says it will not accept new PERM applications from the eight employers, and news reports suggest it will not process their pending applications either. No end date or path to reinstatement has been announced.

Officials gave different reasons for different employers. Sonderling said Microsoft and Adobe were suspended because of multiple active federal investigations. Vance said Microsoft laid off thousands of U.S. workers while continuing to hire through H-1B and green card sponsorship. For the six IT firms, officials pointed to their overall volume: according to Sonderling, the eight employers together have obtained more than 100,000 permanent labor certifications since 2009. These are the administration’s stated reasons.

The suspensions also raise questions for other employers sponsoring workers for green cards.

"Employers should prepare for closer scrutiny of their PERM applications," said Tu Castillo, principal immigration counsel at Boundless.

The announcement, which included a Labor Department inspector general investigation into alleged J-1 visa abuse at nine universities, follows a busy few months for employer immigration compliance. In August, the Department of Justice announced the OpenAI PERM settlement and September saw an executive order directing closer H-1B review of employers with recent layoffs.

Does this affect my company?

If your company is not one of the eight named employers, this suspension does not apply to you. Your PERM cases, green card processes, and employees' work authorizations continue as usual.

If your company is one of the named employers, existing work authorizations such as H-1B status were not part of the announcement. The immediate effect is on green card sponsorship: new PERM filings are stopped, and pending cases are reported to be on hold. How this affects an individual employee depends on where they are in the process, and it is not yet clear how the suspension treats cases that have already been certified or that have an I-140 filed or approved. Employees at these companies should consult with their employer's immigration counsel about any potential impact on their specific immigration process.

If your company works with one of these employers as a client, vendor, or partner, talk with your immigration counsel about your specific situation.

What does this mean for employers planning green card sponsorship?

For most employers, this news doesn't change what you can do. It does reinforce a few things worth planning around:

• Enforcement is increasing. PERM is receiving more attention from the Department of Labor and the Department of Justice. Clear, consistent, well-documented recruitment is more important than ever.
• Timing can't be predicted. Policy changes can arrive with little notice. Cases that are filed and moving are generally in a stronger position than cases waiting to start.
• H-1B clocks keep running. Employees approaching the six-year H-1B limit should have a green card strategy in place. Filing PERM at least 365 days before that limit can allow H-1B extensions beyond six years.

Boundless recommends that employers review which employees are eligible for PERM sponsorship and start those cases sooner rather than later. A short planning review can identify who to prioritize, especially anyone nearing an H-1B limit or a status expiration.

What should employers do now?

Employers who sponsor, or plan to sponsor, green cards can take a few practical steps:

1. Confirm your exposure. Check whether your company, or any of your sponsored employees' work arrangements, involve one of the eight named employers.
2. Identify PERM-eligible employees. Look at roles that are permanent and full-time, employee qualifications, and status expiration dates.
3. Review your recruitment practices. PERM recruitment should closely resemble how your company normally recruits for comparable roles.
4. Start conversations early. Talk with your immigration counsel about timing, budget, and priorities before a deadline forces the decision.

What happens next?

The Department of Labor has not yet released detailed written guidance. Open questions include how long the suspension will last, whether other employers could be added, and how already-certified cases will be treated. Current PERM rules still apply to all other employers.

Boundless will continue monitoring this story and provide updates as new details emerge. In the meantime, you can follow our latest immigration news or read our guides on the PERM process and PERM audits.

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