Eight Major Technology Companies Suspended from the PERM Program

Earlier this month, Vice President JD Vance and Labor Secretary Keith Sonderling announced the suspension of eight technology and IT services companies from the permanent labor certification (PERM) program, citing investigations into alleged immigration program abuses and concerns about harm to U.S. workers. The affected companies are Adobe, Capgemini, Cognizant, HCL Technologies, Infosys, Microsoft, Tata Consultancy Services, and Wipro. The Department of Labor stated that it would neither accept new PERM applications nor process pending applications involving these companies.

PERM is generally the first step in the employer-sponsored green card process. It requires employers to recruit for the offered position and demonstrate that no qualified, able, willing, and available U.S. workers can fill it.

This announcement does not suspend the PERM program for employers generally. Other employers may continue sponsoring foreign national employees, subject to the program’s requirements. However, the administration’s enforcement efforts underscore the importance of carefully documenting recruitment, applying job requirements consistently, and ensuring that U.S. applicants receive fair consideration.

The action comes amid broader scrutiny of employment-based immigration, including H-1B sponsorship by employers that have conducted layoffs. A September executive order directs agencies to consider certain past or planned layoffs when reviewing H-1B-related filings.

Academic institutions are also facing investigations. In an October 9 announcement, the Department of Labor’s Inspector General confirmed an investigation into potential J-1 exchange visitor program fraud at nine universities: Arizona State, Brown, Caltech, Harvard, MIT, Stanford, the University of California, Davis, the University of Pittsburgh, and Yale. The announcement states that subpoenas have been served and that investigators are examining alleged misuse and misclassification within these programs. These are ongoing investigations, rather than findings that violations occurred.

We recognize that these developments create uncertainty for employers and foreign national employees. We are monitoring the changes and are here to help you assess their impact on your immigration plans. Please contact our office with questions about a pending case, future sponsorship, or recruitment compliance.