DOL Suspends Microsoft, Cognizant, TCS, Infosys from PERM Program

HR Dive · United States · Oct 9, 2026

The U.S. Department of Labor suspended Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, HCL Technologies, and Capgemini from the Permanent Labor Certification (PERM) program on October 9, 2026, citing active federal investigations and alleged abuse of H-1B and PERM processes. VP JD Vance specifically accused Microsoft of laying off 6,000 workers while simultaneously securing 6,000 H-1B visas and filing nearly 3,700 PERM applications. Microsoft pushed back, stating 80% of its H-1B petitions were to extend or change status for existing employees rather than hire new workers. Staffing firms and recruiters working with IT outsourcing clients or placing foreign nationals through PERM should expect immediate disruption to pending applications involving these companies and heightened compliance scrutiny across the H-1B and PERM pipeline.