DOL Suspends PERM Processing for Eight Employers

On October 8, 2026, US Secretary of Labor Keith Sonderling announced that DOL would suspend access to the PERM labor certification process for eight major employers.

The announcement followed statements by Vice President JD Vance concerning the recruitment of foreign workers by large technology companies, including allegations about the use of employment-based immigration programs alongside reductions in US workforces.

The following companies were identified as subject to the suspension:

Secretary Sonderling stated that DOL would stop accepting new permanent labor certification applications involving these employers and suspend processing of applications already pending.

The administration has linked the suspensions to concerns about potential misuse of employment-based immigration programs. Officials have also referred to ongoing federal investigations, although the specific circumstances relating to each employer have not been fully detailed publicly.

The suspensions were announced in connection with government concerns and investigations. The announcement does not, in itself, establish that any of the eight companies has committed an immigration violation.

Microsoft has responded to the allegations, stating that it pays H-1B employees the same as other employees performing comparable work. The company also said that approximately 80% of its H-1B petitions in the previous fiscal year involved extensions or changes of status for existing employees rather than new hires.

The suspension affects the employers’ ability to progress labor certification applications, a requirement for many employment-based Green Card applications.

What Does the PERM Suspension Cover?

PERM is administered by DOL’s Office of Foreign Labor Certification and is generally required before an employer can sponsor a foreign worker for permanent residence under the EB-2 or EB-3 employment-based immigration categories.

The process requires employers to obtain a prevailing wage determination and conduct prescribed recruitment to test the US labor market.

Employers must generally demonstrate that there are no able, willing, qualified and available US workers for the position and that employing the foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.

The October suspension affects two stages of the process.

New PERM Applications

DOL has announced that it will not accept new permanent labor certification applications involving the eight named employers while the suspension applies.

Employers that have completed the recruitment process but have not yet filed their PERM applications may therefore be unable to progress those cases.

Pending PERM Applications

Applications already submitted to DOL are also affected. The department has stated that it will not continue processing pending applications involving the named companies.

The announcement does not, however, mean that every affected employee’s immigration application has been cancelled.

Previously approved labor certifications and immigrant petitions are not automatically invalidated by the processing suspension. Nor does the announcement revoke existing H-1B status or prevent workers from continuing employment where they otherwise hold valid work authorization.

The specific treatment of pending applications, including whether additional action will be required when processing resumes, has not yet been fully clarified in publicly available employer-specific guidance.

How Long Will PERM Processing Be Suspended?

The administration has not announced a definite date for the eight employers to regain access to PERM processing.

Vice President Vance indicated that the restrictions would remain in place for as long as the administration considered necessary.

Under 20 CFR 656.31(b), DOL may suspend PERM processing in specified circumstances involving possible fraud or willful misrepresentation. An initial suspension under that provision may last up to 180 days, with extensions permitted in certain circumstances. However, the government has not publicly detailed the legal and procedural basis for each of the eight employers’ suspensions.

The October 8 announcement did not establish a uniform 180-day period or a confirmed resumption date for the eight employers.

The duration and conditions for lifting the restrictions may therefore depend on the legal basis and procedural arrangements applying to each employer, as well as the progress of any relevant investigations.

Affected employers and workers should not assume that applications will automatically resume processing after a particular period.

What Does the Suspension Mean for Employees and Green Card Applicants?

The main consequences concern employees who depend on PERM labor certification as part of their employer-sponsored Green Card applications.

The effect will differ according to the stage reached in the immigration process.

Employees whose employers have not yet filed a PERM application face potentially greater exposure than those with applications already pending or an approved immigrant petition.

Employees Awaiting PERM Filing

Where an employer has completed recruitment but has not submitted the labor certification application, the suspension prevents the application from being filed while the restriction remains in place.

That delay can be significant because the PERM filing date generally establishes the employee’s priority date for an employment-based immigrant visa petition requiring labor certification.

It can also be relevant to eligibility for extensions of H-1B status beyond the normal six-year maximum.

Employers may face further complications if recruitment or prevailing wage determinations expire before filing becomes possible, potentially requiring parts of the PERM process to be repeated.

Employees with Pending PERM Applications

Employees whose applications have already been filed face a different position.

Although processing has stopped, an existing filing may continue to be relevant for certain immigration benefits, subject to the applicable rules and the eventual treatment of the application.

In particular, some H-1B workers may qualify for extensions beyond six years where a labor certification application or qualifying immigrant petition was filed at least 365 days before the relevant extension eligibility date.

The suspension does not automatically remove the significance of an earlier qualifying filing.

However, employees cannot assume that a suspended application will ultimately be certified. The outcome remains dependent on the application and any further DOL action.

Employees with Approved I-140 Petitions

Employees who have already obtained an approved Form I-140 immigrant petition may be in a stronger position.

The PERM processing suspension does not itself revoke an approved I-140.

In certain circumstances, an approved petition may support H-1B extensions of up to three years beyond the normal six-year limit where an immigrant visa is unavailable because of applicable numerical limitations.

Approved petitions may also provide benefits relating to priority date retention, subject to the relevant USCIS rules.

Nevertheless, an approved I-140 does not guarantee permanent residence or remove the need to maintain lawful immigration status while waiting for an immigrant visa to become available.

H-1B Workers Approaching the Six-Year Limit

The most pressing consequences may arise for employees nearing the normal six-year maximum period of H-1B stay.

Under the American Competitiveness in the Twenty-First Century Act (AC21), qualifying workers may be eligible for extensions beyond six years based on the progress of their employment-based immigrant visa process.

Where an employer cannot file a PERM application, an employee may be unable to establish the qualifying filing history needed for certain extensions.

Employees already approaching the six-year limit may therefore have less time to establish an alternative immigration strategy.

The impact depends on the employee’s individual immigration history, time previously spent in H-1B status, any qualifying periods outside the United States and the availability of other extension provisions.

What Does the PERM Suspension Mean for Other US Employers?

The October 8 announcement concerns eight named companies. Other US employers have not been placed under a general PERM processing suspension.

However, the development demonstrates the potential consequences of government scrutiny of employment-based immigration recruitment practices.

The administration has specifically raised concerns about the relationship between foreign worker sponsorship and reductions in US workforces.

Existing PERM regulations already require employers to demonstrate that recruitment has been conducted in accordance with prescribed requirements and that qualified, available US workers have been considered appropriately.

There are also specific obligations where employers have undertaken layoffs.

Under 20 CFR 656.17(k), an employer that has experienced layoffs within six months before filing a PERM application may be required to demonstrate that it notified and considered potentially qualified laid-off US workers.

The requirements depend on the nature of the layoffs, the relevant occupation and the area of intended employment.

A layoff does not automatically prevent an employer from sponsoring a foreign worker through PERM. However, the employer must be able to demonstrate compliance with any applicable recruitment and notification requirements.

Employers should also ensure that PERM recruitment records accurately reflect the process undertaken, including the reasons US applicants were rejected and whether those reasons satisfy the regulatory requirements.

For businesses undergoing restructuring, layoffs or significant changes in workforce composition, the relationship between recruitment decisions and PERM sponsorship warrants particular attention.

The October action does not introduce new PERM recruitment requirements, but it demonstrates the potential consequences of government investigations and enforcement action for employers relying on permanent labor certification.

Need Assistance?

NNU Immigration advises US employers and international workers on PERM labor certification, employment-based Green Card applications and H-1B visa requirements.

For advice on how the PERM suspension may affect your workforce or individual immigration position, book a fixed-fee telephone consultation with one of our US immigration attorneys.

Official Sources