PERM Suspension: What It Does and Does Not Do to Your H-1B Status

Tens of thousands of H-1B workers woke up today to a headline that sounds worse than it is. On October 8, 2026, the Department of Labor suspended eight major employers from the PERM program, the federal process that most companies use to sponsor workers for employment-based green cards. The companies affected include Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL, and Capgemini, many of which employ large workforces right here in Massachusetts. The suspension has understandably rattled workers who were counting on their employer to move their green card forward, but the reality is more nuanced than the headlines suggest. An experienced immigration lawyer can help you understand exactly where you stand and what options remain open to you, and a green card lawyer can review whether an alternative path may work for your situation. If you work for one of these companies and have questions about your case, call Brooks Law Firm today at (617) 245-8090 for a free consultation.

What PERM Is and How It Fits into the Green Card Process

PERM, which stands for Program Electronic Review Management, is the Department of Labor’s labor certification process. It is the first major step in the most common employer-sponsored green card path, known as the EB-2 or EB-3 route.

Here is how it normally works:

• The employer conducts a round of recruitment to demonstrate that no qualified U.S. worker is available for the position.
• The employer files a PERM labor certification application with the Department of Labor.
• If the labor certification is approved, the employer then files a Form I-140 (Immigrant Petition for Alien Workers) with USCIS.
• Once the I-140 is approved and a visa number becomes available, the worker applies for adjustment of status or goes through consular processing abroad to receive the green card.

The entire process is lengthy and expensive. PERM alone can take well over a year, and the steps that follow add months or years on top of that. For workers from countries with long visa backlogs, the wait can stretch across a decade. What makes PERM so important is that without it, most employer-sponsored EB-2 and EB-3 green card cases simply cannot move forward. That is exactly why this suspension matters.

What Just Happened on October 8, 2026

At a press conference at the Eisenhower Executive Office Building alongside Vice President JD Vance, Labor Secretary Keith Sonderling announced that the Department of Labor is suspending all eight companies from the PERM program, citing active federal investigations. According to the Secretary, these companies have collectively received over 230,000 H-1B visa approvals and more than 100,000 PERM labor certifications since 2009.

Administration officials cited concerns that some of these employers filed large volumes of H-1B and PERM applications alongside domestic workforce reductions, which officials allege may have disadvantaged qualified U.S. workers. As of this writing, the government has not published a formal written announcement, has not provided a timeline for how long the suspension will last, and has not described what steps companies would need to take to have their access restored.

This announcement did not come out of nowhere. It is part of a broader federal enforcement wave that has been building for over a year:

• September 2025: The DOL launched Project Firewall, an enforcement initiative targeting H-1B employer compliance, including coordinated investigations with USCIS, the DOJ, and the EEOC.
• April 2026: The DOJ filed a lawsuit against Cloudera, alleging that the company discriminated against U.S. workers through its PERM recruitment practices.
• May 2026: The DOL suspended Cloudera’s PERM applications for 180 days under 20 CFR § 656.31, which permits the DOL to suspend PERM processing in connection with investigations into possible fraud or willful misrepresentation.
• July 2026: The DOL’s Office of Inspector General announced a broader nationwide investigation into potential fraud involving both the H-1B and PERM programs.
• September 8, 2026: DOL Inspector General Anthony D’Esposito suspended Cognizant’s PERM filings, linking the action to the broader fraud investigation and the White House Fraud Task Force.
• October 8, 2026: The suspension expanded to include all eight companies named above. This marks Cognizant’s second PERM suspension in a month.

The DOL used 20 CFR § 656.31(b) as the basis for its earlier PERM suspensions of Cloudera and Cognizant, but has not yet confirmed the specific legal authority for the October 8 action.

What the PERM Suspension Does NOT Do to Your H-1B

This is the most important thing to understand: the PERM suspension does not revoke, cancel, or otherwise affect your H-1B work authorization.

PERM and H-1B are two entirely separate parts of the immigration system. PERM is a Department of Labor process that starts the green card path. Your H-1B is a nonimmigrant work visa governed by USCIS. One does not depend on the other for validity. Your H-1B visa remains valid for the period it was approved, and the PERM suspension does not change the expiration date on your I-94 or your right to continue working for your employer.

In concrete terms:

• Your employment authorization is unchanged. You may continue to work for your employer on H-1B status exactly as before.
• Your I-9 employment verification is unaffected. The suspension does not change anything about how your employer verifies your work authorization.
• If your H-1B is up for extension or transfer, that process proceeds through USCIS as normal. The DOL’s PERM action has no bearing on it.

The confusion is understandable, because many H-1B workers think of PERM as “part of” their H-1B. But PERM is really part of the green card pipeline, not the H-1B pipeline.

What the Suspension Does Do: Your Green Card Path Is on Hold

While your job is safe for now, your green card timeline through employer sponsorship at one of the eight named companies is effectively frozen. Based on what the administration has announced so far, the suspension means:

• No new PERM applications. Your employer cannot file a new PERM labor certification while the suspension is in effect.
• Pending applications are frozen. If your employer already filed a PERM application that has not yet been certified, the DOL will not process it during the suspension.
• Already-certified PERM cases were not addressed. The announcement did not specifically state whether previously certified labor certifications remain valid. If you have an approved PERM and your employer has already filed or is about to file the I-140 petition with USCIS, you should consult with an attorney to understand how your specific case may be affected.
• The recruitment clock may reset. PERM requires a specific sequence of recruitment steps that must be completed within a set timeframe. If those timelines expire during the suspension, the employer may need to restart the recruitment process entirely once the suspension lifts, adding months to an already long wait.
• There is no announced end date. Under 20 CFR § 656.31, an initial PERM suspension may last up to 180 days and can be extended while an investigation or judicial proceeding remains unresolved. The DOL has not stated whether this framework applies to the October 8 suspensions or how long they will last.

For workers who were in the middle of the PERM process or waiting for their employer to begin one, this is a significant disruption. The green card process was already one of the slowest parts of the immigration system, and this suspension adds an indefinite additional delay.

Your Options If Your PERM Is Frozen

The suspension blocks one path to a green card, but it does not block all of them. Depending on your qualifications, your family situation, and your career stage, several alternative routes may be available.

Self-Petition through an EB-2 National Interest Waiver (NIW)

The EB-2 NIW is a green card category that bypasses PERM entirely. It allows you to petition for yourself, without employer sponsorship, if you can demonstrate that you hold an advanced degree or have exceptional ability, and that your work has substantial merit and national importance. USCIS evaluates NIW petitions under a framework known as Matter of Dhanasar.

Tech workers, engineers, researchers, and other professionals have increasingly pursued the NIW path, and it has become one of the most discussed alternatives in the wake of PERM enforcement actions. Because it is a self-petition, it does not depend on any employer’s willingness or ability to sponsor you. That said, NIW cases require strong evidence and careful preparation, and approval is not guaranteed. An attorney can help you evaluate whether your professional profile supports a viable NIW petition.

EB-1A Extraordinary Ability

The EB-1A category is available to individuals who can demonstrate extraordinary ability in their field through sustained national or international acclaim. It requires substantial evidence, such as significant publications, major awards, patents, or leadership roles in distinguished organizations, but it also skips PERM and does not require an employer sponsor. The evidentiary bar is high, and not every applicant will meet it.

Family-Based Green Card

If you are married to a U.S. citizen, or have another qualifying family relationship with a U.S. citizen or lawful permanent resident, you may be eligible to pursue a green card through the family-based immigration system. This path is entirely separate from the employment-based system and is unaffected by the PERM suspension. For some workers, a family-based case may move significantly faster than waiting for the PERM suspension to lift.

Move to a New Employer

As Secretary Sonderling described it, the suspension covers PERM applications “involving” the eight named companies. A new employer that is not on the suspension list may be able to file a fresh PERM application on your behalf. H-1B portability rules generally allow you to begin working for a new employer once that employer files an H-1B transfer petition with USCIS, even before USCIS formally approves the transfer. If you are considering a job change, this may also be an opportunity to restart the green card process with a company whose PERM access is intact.

EB-1C Multinational Manager or Executive

If you hold a managerial or executive role and your employer has qualifying operations abroad, the EB-1C category may be available. Unlike EB-2 and EB-3, the EB-1C does not require PERM labor certification. This category does require employer sponsorship, so it depends on the company’s willingness and ability to file.

Why This Situation May Change Quickly

New immigration enforcement actions have been coming at an extraordinary pace throughout 2025 and 2026, and a significant number of them have been challenged in federal court. Some have been struck down, stayed, or narrowed by judges. While no lawsuit has been filed against the October 8 PERM suspensions as of this writing, immigration attorneys and industry groups widely expect legal challenges in the coming weeks.

The key legal questions are likely to center on whether the DOL followed proper administrative procedures, whether the suspensions are proportionate to the alleged violations, and whether affected workers have due process rights that a blanket suspension fails to protect.

This is exactly why it is important to get advice that is specific to your individual circumstances. Immigration policy is moving fast right now, and many of the actions being taken are being challenged, modified, or reversed through the courts. What is true today may look different in a matter of weeks.

What You Should Do Right Now

If you work for one of the eight suspended companies, or if your employer was in the process of sponsoring you for a green card through PERM, the most important step you can take is to understand your individual options. Not every worker is in the same position. Some may have strong NIW or EB-1A cases. Others may have a family-based path they have not yet explored. And some may benefit from a strategic move to a new employer that can restart the green card process.

Here is what we recommend:

• Do not panic about your H-1B. Your work authorization is intact and is not affected by this action.
• Gather your documents. Collect your H-1B approval notices, any PERM-related correspondence from your employer, your resume, and any evidence of your professional achievements (publications, patents, awards, media coverage). These will be important for evaluating alternative green card paths.
• Consult an immigration attorney. A case-specific review can identify which paths are realistic for your profile and timeline. Do not rely solely on general employer communications or online summaries.
• Watch for legal developments. Federal lawsuits may alter the scope or duration of the suspensions. An attorney can help you monitor changes that affect your case.

Reach out to Brooks Law Firm today to schedule a free consultation, and we will give you an honest look at where you stand and what options are available to you. Call (617) 245-8090 to speak with an attorney who understands the full picture.