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A reported U.S. suspension of eight technology employers from processing Permanent Labor Certification Program (PERM) applications could lead some employees awaiting employment-based green cards to seek jobs with firms that can still sponsor them, predicts business consultant Harish Bijoor. The action concerns a step in certain permanent-residency cases—not a general suspension of H-1B status—and does not mean affected workers automatically have to leave the United States.
What the reported suspension covers
On October 8, 2026, the administration announced a suspension affecting eight employers in the PERM process, according to the Associated Press and Reuters. The named companies are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
PERM is the Department of Labor’s permanent labor-certification process used in many employer-sponsored green-card cases. The process generally requires an employer to advertise a job in the United States before asking the department to certify that it needs a foreign worker, the AP reports. The announced action is described as a suspension of PERM processing for the named employers; the available reports do not establish its duration or the precise status of every individual application.
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PERM is not H-1B
PERM and H-1B serve different purposes. PERM is a labor-certification step that can be part of a route to permanent residency. H-1B is temporary nonimmigrant work status for skilled employment. Axios explains the distinction between the two processes in its coverage.
| Process | Purpose | What the October 8 announcement affects |
|---|---|---|
| PERM | Labor certification that can support an employer-sponsored green-card case | Reported suspension of processing involving the eight named employers |
| H-1B | Temporary work status for skilled workers | No general H-1B suspension is reported |
So, the announcement should not be described as canceling H-1B visas or requiring all H-1B workers at those companies to leave the country. Its reported scope is the employers’ PERM processing, not the H-1B program as a whole.
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Why Bijoor expects some workers may move
Harish Bijoor, founder of Harish Bijoor Consults Inc., predicts that employees waiting for permanent residency may move to companies that can continue sponsoring their applications. That could prompt talent movement across the technology industry, according to LatestLY’s October 9 report.
This is a forecast, not a measured outcome. The report provides no estimate of how many employees might change jobs, and the available coverage does not show that such a shift has already occurred. Whether a particular worker can change employers or continue a green-card process depends on the facts of that case; the announcement alone does not establish a straightforward transfer to another sponsor.
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What the administration says is behind the action
The administration has cited allegations of fraud and concerns about hiring American workers as its rationale, according to the AP. Those are the administration’s stated reasons, not findings shown in the available reports to have been independently adjudicated.
Vice President JD Vance said, “Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers,” the AP reported. Labor Secretary Keith Sonderling said, “We will not accept any new or process any pending permanent labor certification applications involving these companies,” according to Reuters.
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What affected workers can and cannot infer
The reported action creates an obstacle to one employer-based route toward permanent residency for people whose cases involve the named companies. It does not, by itself, establish that every employee is affected in the same way, that a worker must leave the United States, or that changing employers will preserve a particular case.
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- Check whether your specific immigration case involves a PERM application connected to one of the named employers.
- Do not treat this announcement as a blanket change to H-1B status; the reports distinguish the PERM action from H-1B.
- Ask qualified immigration counsel about your case before making employment or travel decisions. The reports do not resolve individual legal consequences.
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