On October 8, 2026, Vice President JD Vance announced that the U.S. Department of Labor is suspending Microsoft, Adobe, and six major IT outsourcing firms from the PERM permanent labor certification program, the main pathway employers use to sponsor H-1B visa holders for employment-based green cards. The announcement, titled ‘Vance Suspends Microsoft From Green Card Program for H-1B Workers,’ highlights that the Labor Department “will not accept any new or process any pending permanent labor certification applications” involving these companies until further notice. The suspension does not cancel existing H-1B visas, but it freezes the most common route those workers use to obtain permanent residency.
What Is the H-1B Visa Program and How Does It Work?
The H-1B visa lets U.S. employers temporarily hire foreign workers in “specialty occupations,” roles that generally require at least a bachelor’s degree in a specific field. It is the primary visa used by the tech industry to hire engineers, developers, and analysts from abroad.
Here is the basic lifecycle of the program:
- Petition and lottery: An employer files a petition with U.S. Citizenship and Immigration Services. Because demand exceeds the annual cap, most petitions enter a randomized lottery.
- Employment: Approved workers receive up to three years of status, extendable to six years, and can change employers if a new petition is approved.
- The green card step: Many H-1B holders transition to permanent residency through employer sponsorship, which is where the PERM process comes in.
The PERM program, run by the Department of Labor, requires employers to prove that hiring a foreign worker for a permanent position will not harm wages, working conditions, or job opportunities for U.S. workers. PERM approval is a prerequisite for most employment-based green cards, which is exactly the pathway the new suspension freezes.
What Did Vance Say About Microsoft and the H-1B Suspension?
Vance, speaking alongside Labor Secretary Keith Sonderling, called the action “historic” and framed it as an effort to “shut down the pipeline of systemic fraud.” He told reporters that “great American companies” like Microsoft must “hire great American workers” rather than rely on visa programs that displace them, according to PBS NewsHour’s coverage of Vance’s announcement.
Vance chairs a White House anti-fraud initiative, and the announcement positioned the suspension within the administration’s broader populist argument on immigration and American labor. The messaging was explicit: this was framed not as a routine enforcement action but as a deliberate escalation against large employers.
Why Did Microsoft Get Suspended From Green Card Sponsorship?
Officials gave three main reasons: layoffs paired with foreign sponsorship, alleged wage undercutting, and alleged misuse of the specialty-occupation standard.
- Layoffs alongside sponsorship: The administration cited figures that Microsoft laid off about 6,000 U.S. employees last year while receiving roughly 6,300 H-1B visas and nearly 3,000 employment-based green cards for foreign workers, as reported by Fox Business.
- Wage gaps: Officials allege the company pays sponsored foreign workers “tens of thousands of dollars” less than comparable American employees.
- Specialty-occupation claims: Officials argue some sponsored positions do not meet the H-1B requirement of being in unique, highly specialized occupations, which they characterize as fraudulent use of the program, per Spectrum News.
These are allegations tied to active federal investigations, not adjudicated findings. Microsoft has not been found liable for fraud by any court, and the companies can contest the government’s claims.
What Does It Mean When a Company Is Suspended From H-1B Programs?
A PERM suspension means the Department of Labor stops accepting and processing permanent labor certification applications tied to that employer. In practice, it blocks the front door to employer-sponsored green cards.
What is affectedWhat is not affectedNew PERM filings for the named employersExisting H-1B visa statusProcessing of pending PERM applicationsH-1B extensions and transfers in most casesNew green card sponsorship through PERMGreen cards already approvedThe standard employer-sponsored pathwayFamily-based or self-petition routes
The important nuance: this is a suspension from the green card sponsorship program, not a revocation of the H-1B program itself. The distinction matters enormously for affected employees, because their current right to work remains intact while their path to permanence is blocked.
How Long Is Microsoft’s Suspension From H-1B Green Card Applications?
No end date has been announced. The suspension is indefinite and tied to “further notice” from the Labor Department, meaning it lasts until the department lifts it or resolves the underlying investigations.
That open-ended structure is significant. Companies facing indefinite suspension cannot plan sponsorship timelines, and employees cannot estimate when their pending cases might move again. Reuters and other outlets reporting on the action note that the freeze does not appear to directly affect the legal status of current H-1B holders, but it blocks the common route to permanent residency, as NBC Connecticut’s report explains.
What Are the Consequences for Microsoft Employees Affected by This?
For foreign workers at Microsoft, Adobe, and the named outsourcing firms, the consequences fall into three buckets.
Immediate effects:
- Pending PERM applications stall, freezing the first stage of most employment-based green card cases.
- Employees who were about to begin the PERM process cannot start.
- Green card timelines, already measured in years, become unpredictable.
What still works:
- Current H-1B status and continued employment.
- H-1B extensions, which in many cases can continue past the six-year limit when a green card case is far enough along, though the frozen PERM stage complicates this for newer cases.
Practical risk: Workers whose priority dates become current but who lack a PERM approval cannot file the final green card stages. For employees with children approaching age 21, or those from countries with long visa backlogs, a stalled PERM can disrupt schooling, travel plans, and family decisions.
Can Microsoft Employees Still Work on H-1B Visas During the Suspension?
Yes. The suspension targets the PERM program, not the H-1B visa itself, so current H-1B holders at Microsoft keep their work authorization and can continue in their jobs. Their pay, employment terms, and day-to-day status are unchanged by this action.
Employees should watch two things closely: whether the government widens the action to the H-1B program itself, and whether their employer’s pending PERM cases are eventually processed or denied. Anyone mid-way through a green card case should consult an immigration attorney about their specific stage, because options differ sharply depending on how far the case has progressed.
Which Other Tech Companies Have Been Suspended From H-1B Programs?
Six major IT outsourcing firms were suspended alongside Microsoft and Adobe: Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. Sonderling said the outsourcing firms are being suspended due to multiple active federal investigations into alleged visa and labor-market abuses, per USA Today’s coverage.
Officials framed the scale as systemic, saying these companies have together applied to bring in nearly 3 million foreign workers since 2009 and received more than 230,000 H-1B approvals and over 100,000 permanent labor certifications. The same announcement expanded investigations into nine elite universities, including Harvard, Yale, and Stanford, over alleged J-1 exchange visitor visa abuses that officials said in some cases resembled labor trafficking.
How Does This Suspension Affect Pending Green Card Applications?
Pending PERM applications involving the suspended companies will not be processed. That is the direct, mechanical effect of the announcement. But the ripple effects depend on the stage of each case:
- PERM pending: The case sits frozen. No adjudication, no denial, no movement.
- PERM approved, I-140 pending or approved: Cases already past the labor certification stage may continue through USCIS, which is a separate agency from the Labor Department. This is a critical distinction for affected workers.
- I-485 adjustment of status pending: Applicants may continue, though future sponsorship for family members or job changes could be complicated.
Because the Department of Labor and USCIS are separate agencies, the suspension does not automatically kill every case in a worker’s pipeline. That is why individual case review matters more than blanket assumptions.
How Many Microsoft Employees Are on H-1B Visas?
Microsoft is consistently among the largest users of the H-1B program. The administration’s own figures, cited in the announcement, indicate Microsoft received roughly 6,300 H-1B visas last year and nearly 3,000 employment-based green cards, while laying off about 6,000 U.S. employees, according to NewsNation’s reporting on the AP announcement. Precise current headcounts of H-1B workers at Microsoft were not provided in the announcement, and companies’ full visa-dependent workforce figures fluctuate year to year.
Can Microsoft Appeal the H-1B Suspension?
Yes, in principle. Employers facing adverse Labor Department actions can challenge them through administrative appeals and, ultimately, federal court. Microsoft has significant legal resources and has contested regulatory actions before.
However, officials tied the suspension to active investigations, which means any appeal or negotiation would likely run in parallel with those probes. There is no standard timeline for how long such a challenge might take, and the administration has shown it intends to use the investigations as leverage for broader policy changes. Whether Microsoft fights the suspension in court, negotiates a settlement, or adjusts its sponsorship practices remains to be seen.
What Are Alternatives for Microsoft H-1B Workers to Get Green Cards?
Suspended PERM sponsorship does not eliminate every route to permanent residency. Affected workers should evaluate these options with an immigration attorney:
- Family-based green cards: Immediate relatives of U.S. citizens, and certain family preference categories, do not require employer sponsorship or PERM.
- Self-petition categories: Extraordinary ability (EB-1A) and national interest waiver (EB-2 NIW) petitions do not require a labor certification, so a PERM suspension does not block them.
- Sponsorship by a different employer: A worker can move to a new employer whose PERM eligibility is intact, though this restarts the green card clock in most cases.
- Investor or other categories: EB-5 and less common pathways exist but carry their own costs and timelines.
Decision rule: if a worker is early in the PERM process, switching employers or pursuing a self-petition may be faster than waiting out the suspension. If a case is already past PERM, staying the course is usually the better move.
FAQ
Does the suspension cancel existing H-1B visas?
No. The action freezes PERM green card sponsorship, not the H-1B program itself. Current visa holders keep their work status.
Which companies were suspended?
Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini.
What is the PERM program?
It is the Department of Labor’s permanent labor certification process, a required first step for most employment-based green cards. Employers must show hiring a foreign worker will not harm U.S. workers.
How long does the suspension last?
Indefinitely. The Labor Department said it will not accept or process applications for the named companies “until further notice.”
What did officials accuse Microsoft of specifically?
Laying off about 6,000 U.S. workers while sponsoring thousands of foreign workers, paying sponsored workers less than comparable Americans, and sponsoring roles that may not meet the specialty-occupation standard.
Are these proven violations?
No. The allegations are tied to active federal investigations. No court has found the companies liable for fraud.
Can affected workers switch to another employer?
Yes. Moving to an employer that is not suspended allows a new green card sponsorship, though most workers must restart the process.
Does this affect green cards already approved?
No. Approvals already granted stand. The suspension blocks new and pending PERM applications, not completed cases.
Are universities affected too?
Yes. Nine universities, including Harvard, Yale, and Stanford, are under investigation over alleged J-1 exchange visitor visa abuse.
Key Takeaways
- Who is suspended: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini are suspended from the PERM program.
- What is frozen: No new PERM applications will be accepted, and pending applications will not be processed for these employers.
- What is NOT affected: Current H-1B visa holders at these companies keep their legal work status for now.
- The core allegation: Officials accuse Microsoft of laying off roughly 6,000 U.S. employees last year while receiving about 6,300 H-1B visas and nearly 3,000 employment-based green cards.
- Additional claims: Officials allege sponsored foreign workers are paid “tens of thousands of dollars” less than comparable American employees, and that some roles do not meet the H-1B specialty-occupation standard.
- The scale cited: The named companies have together applied to bring in nearly 3 million foreign workers since 2009, according to the administration.
- Broader crackdown: Nine universities, including Harvard, Yale, and Stanford, are also under investigation over alleged J-1 visa abuses.
- No stated end date: The suspension is indefinite, pending the outcome of federal investigations.
Conclusion
The suspension of Microsoft, Adobe, and six major outsourcing firms from the PERM program marks a sharp escalation in the federal government’s approach to employment-based immigration. For the thousands of H-1B workers at these companies, the practical takeaway is clear: current work status is intact, but the standard road to a green card is closed until further notice.
Affected employees should act now rather than wait. Review your case stage with an immigration attorney, confirm whether you are past the PERM stage, and evaluate self-petition or employer-change alternatives if you are not. Employers across the tech sector should audit their sponsorship practices and prepare for tighter enforcement. And anyone following the story should watch two signals: whether Microsoft or Adobe challenge the suspension in court, and whether the administration widens the action beyond PERM into the H-1B program itself. Both decisions will shape the U.S. tech labor market for years.
