DOL PERM Suspension: What It Means for Employers and Green Card Applicants

Published: Oct 29, 2026

Author: Michael Ashoori

Reviewed by: Beth Persky, Esq.

DOL PERM suspension for eight employers compared with debarment and a program-wide pause

OVERVIEW

    Based on what federal officials announced on October 8, 2026, the October 2026 PERM suspension is not a nationwide pause of the PERM program. At a White House press conference that day, Labor Secretary Keith Sonderling said the Department of Labor (DOL) would not accept new PERM labor certification applications, or process pending ones, involving eight named employers: Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. Nothing announced affects any other employer. Other employers can still file PERM applications, and DOL continues to process them.

    The action also does not appear to be a debarment. A debarment is a formal penalty of up to three years that requires written notice and review rights, and as of the last check for this article (October 14, 2026), none of the eight companies appeared on DOL’s published debarment list. What officials described sounds like a suspension of processing tied to investigations, the same tool DOL said it used earlier in 2026 against Cloudera.

    One caution applies to everything below. As of October 14, 2026, no DOL news release, Office of Foreign Labor Certification (OFLC) announcement, Federal Register notice, or other public agency record of the October 8 action had been located. The scope described here comes from statements at the press conference, news coverage, and law firm reports. Treat it as reported, not confirmed, until DOL publishes written terms or the details are checked against the agency record. This post separates what has been reported from what the regulations actually provide, and explains what a suspension means for pending and certified PERM cases, priority dates, I-140 petitions, H-1B extensions beyond six years, and job changes.

    Key Takeaways

    • Eight employers, not the whole program. As reported, the October 8, 2026 announcement covers PERM applications involving Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. Other employers are not affected.
    • It appears to be a suspension, not a debarment. None of the eight companies appeared on the debarment list as of October 14, 2026, and the allegations are not findings of fraud.
    • No public written DOL record was located as of October 14, 2026. The regulation that governs suspensions requires written notice to the affected employer, attorney, or agent, so the affected companies may hold a notice that is not public. Details may change once terms are published.
    • The likely legal basis is 20 CFR 656.31(b), but DOL has not said so in writing. That rule lets DOL suspend processing while an investigating agency looks into possible fraud or willful misrepresentation, for an initial period of up to 180 days, which the National Certifying Officer can then extend.
    • The refusal of new filings is a reported statement, not a regulatory mechanism. Section 656.31(b) addresses suspending the processing of applications; it does not expressly address refusing to accept new ones.
    • Officials did not announce any change to certified PERMs or approved I-140s. An approved I-140 generally keeps its priority date unless it is revoked for specific reasons such as fraud or revocation of the labor certification.
    • H-1B workers who meet the AC21 three-year exemption can generally keep extending. Workers whose PERM was never filed have no AC21 basis to extend past six years with a suspended employer.
    • A certified PERM still expires. The 180-day validity period under 20 CFR 656.30(b) keeps running during the suspension, and letting it lapse can also cost a worker the basis for one-year H-1B extensions.
    • PERM employers generally should expect closer review. Audits, supervised recruitment, and recordkeeping matter more now than they did a year ago.

    What did the Department of Labor announce?

    At a White House press conference on October 8, 2026, led by Vice President JD Vance, Labor Secretary Keith Sonderling said DOL would not accept any new, or process any pending, permanent labor certification applications involving the eight companies. The exact wording should be confirmed against the press conference recording or a transcript before relying on it. Officials linked the Microsoft and Adobe actions to active federal investigations and pointed to the volume of foreign labor filings by the six IT services firms. Attorney General Todd Blanche said the Department of Justice is investigating employers that favor foreign workers over U.S. workers.

    The same event included a separate announcement from DOL’s Office of Inspector General: subpoenas to nine universities over their use of the J-1 exchange visitor program, and a new Visa Fraud Strike Team focused on H-1B and J-1 programs (OIG press release, October 9, 2026). That university investigation is not a PERM action.

    As of October 14, 2026, OFLC’s announcements page had no posting about the October 8 action, and no Federal Register notice had been published. That does not necessarily mean no written terms exist. Under 20 CFR 656.31(b), DOL provides written notice of a processing suspension to the employer, attorney, or agent involved, unless the investigating agency asks in writing that notice not be given. A notice sent to the eight employers would satisfy the regulation without being posted publicly.

    Earlier suspensions show what written terms look like. When DOL suspended Cloudera in May 2026, its news release said OFLC suspended processing of all PERM applications filed by or on behalf of Cloudera for 180 days, with possible extension pending a DOJ investigation.

    Important: The allegations behind these suspensions are allegations, not findings. None of the eight employers had been charged with a crime or debarred as of October 14, 2026, and a suspension does not by itself mean any individual worker’s case involved fraud.

    Is this a suspension, a debarment, or a program-wide pause?

    DOL has several different tools for PERM compliance, and news coverage mixes them up. Based on how officials described it, the October 8 action fits the first row of the table below. It is not a program-wide pause, and nothing reported indicates a debarment.

    Tool Rule What it does Applies to the October 8 action?
    Suspension of processing 20 CFR 656.31(b) Holds applications connected to an employer, attorney, or agent that an investigating agency is examining for possible fraud or willful misrepresentation, with written notice to that party unless the agency asks otherwise. Initial period up to 180 days after the suspension began; the National Certifying Officer may then resume some or all cases or extend the hold Likely basis given how officials described the action; DOL had not cited it in writing as of October 14, 2026
    Suspension after criminal charges 20 CFR 656.31(c) Holds related applications until a criminal case ends No charges announced
    Debarment 20 CFR 656.31(f) Bars an employer, attorney, or agent from the program for up to 3 years for listed misconduct, with written notice and review under 656.26 No debarment reported. None of the eight was on the debarment list as of October 14, 2026
    Audit 20 CFR 656.20 Requests recruitment documentation for a specific application before a decision Separate, case-by-case tool
    Supervised recruitment 20 CFR 656.21 Requires the employer to recruit under DOL direction before or after filing Separate, case-by-case tool
    Revocation 20 CFR 656.32 Revokes an already approved labor certification found not justified, after notice and a chance to respond Not announced

    The distinction matters for workers. A suspension pauses processing. It does not deny applications, and under 20 CFR 656.31(d), if an investigation does not lead to a finding of fraud or willful misrepresentation, the Certifying Officer decides each pending application on its merits. One open question is the refusal of new filings: 656.31(b) speaks to suspending the processing of applications, and several practitioners have noted that it does not expressly create a mechanism for rejecting new ones. Whether DOL’s written terms, when published, address that point is something to watch.

    2026 PERM enforcement actions at a glance

    Date What happened Source type
    April 28, 2026 DOJ Civil Rights Division filed a complaint against Cloudera alleging a recruitment process that excluded U.S. workers DOJ filing (cited in DOL release)
    May 12, 2026 OFLC announced it had suspended processing of all Cloudera PERM applications for 180 days, extendable pending DOJ investigation DOL news release
    July 8, 2026 DOL Inspector General announced a major H-1B and PERM fraud investigation and dozens of subpoenas OIG press release
    September 8, 2026 Inspector General announced PERM suspensions for Cognizant and Cloudera on social media Social media post and news reports; attorney should confirm against the original post
    October 8, 2026 Officials announced DOL would not accept or process PERM applications involving eight employers Press conference; no public written DOL notice located as of October 14, 2026
    About November 8, 2026 Initial review point for the Cloudera suspension, if it began on May 12, 2026, the date DOL announced it. At that point processing may resume in whole or in part, or the suspension may be extended Calculated from the announced date and 20 CFR 656.31(b)

    The Cloudera review point is about three weeks away from this writing. The regulation measures the 180 days from when the suspension began, which may differ from the press release date, so the operative date should be confirmed from the actual notice. How DOL handles that review point is the first real indication of how long the October 8 suspensions could last, since the same 180-day structure would apply to them if 656.31(b) is the basis.

    What happens to a pending PERM application?

    A pending PERM application involving one of the eight employers is on hold for as long as the suspension lasts. Under 20 CFR 656.31(b), an application whose processing is suspended generally should not be adjudicated while the hold is in place. The hold is not an absolute bar on every action, though. Section 656.31(a) separately allows a Certifying Officer to deny an application on finding false statements, fraud, or another violation of the regulations, and nothing reported about the October 8 action says otherwise. In practice, an affected employer should expect no certification during the hold.

    The priority date for a PERM-based green card case is generally the date DOL accepted the labor certification application for processing (8 CFR 204.5(d)). A suspension does not change that date. It helps to separate three stages:

    1. The date is established when DOL accepts the PERM for processing.
    2. The date can be used to file for a green card only once the PERM is certified, a Form I-140 petition has been filed, and an immigrant visa is available for that date under the Visa Bulletin. When a visa is available, Form I-485 (Adjustment of Status) may generally be filed together with the I-140, so I-140 approval is not always required before the worker can file.
    3. The date is retained for use in a later petition, including one filed by a different employer, only once an I-140 is approved (8 CFR 204.5(e)).

    A pending PERM is at stage one. The date exists, but there is no retention right. If the application is eventually denied on any ground, not only fraud, it cannot support the immigrant case, and the date tied to it is not retained.

    PERM recruitment also has a shelf life, and the timing rules are specific. Under 20 CFR 656.17(e), for professional occupations the mandatory recruitment steps (the State Workforce Agency job order and two Sunday newspaper advertisements) must take place at least 30 days, and no more than 180 days, before filing. Of the three additional professional recruitment steps, only one may consist solely of activity within the 30 days before filing, and none may be more than 180 days old at filing. For cases where recruitment finished but the application had not been filed by October 8, the 180-day limit may run out before the employer is able to file, and the recruitment would need to be repeated. The prevailing wage determination used for the case also has its own validity period, and an employer that waits out the suspension may need a new one before refiling.

    A separate development affects every PERM employer, not only the eight. On March 27, 2026, DOL published a proposed rule in the Federal Register that would change the prevailing wage levels used in the PERM, H-1B, H-1B1, and E-3 programs. As proposed, the new methodology would apply to prevailing wage applications pending on the rule’s effective date and to those submitted on or after it. It would not reopen prevailing wage determinations already issued, permanent labor certifications already approved, labor condition applications already certified, or permanent labor certification applications already filed. As of October 14, 2026, no final rule had been identified for this article; whether one has since been published, and any effective date, should be confirmed before publication. A case that has to restart recruitment and request a new prevailing wage after a long suspension could fall under the new levels if the rule is finalized.

    What about certified PERMs and approved I-140 petitions?

    Officials described the action as covering labor certification applications. They did not announce any change to labor certifications that DOL has already approved or to I-140 petitions at USCIS. That leaves three groups in different positions:

    1. Certified PERM, I-140 not yet filed. A labor certification is valid for 180 calendar days from the date DOL certified it, and the I-140 must be filed within that window (20 CFR 656.30(b)). The suspension does not stop that clock. Whether DOL or USCIS will treat these cases differently is unclear, so employers in this group generally should not let the 180-day window lapse while waiting for guidance. Letting it lapse has a second consequence for H-1B workers, explained in the next section.
    2. I-140 pending. USCIS has authority to withhold a decision while an investigation is underway (8 CFR 103.2(b)(18)). No USCIS announcement about these employers had been located as of October 14, 2026.
    3. I-140 approved. Under 8 CFR 204.5(e), the priority date is generally kept once an I-140 is approved, unless USCIS revokes the approval for fraud or willful misrepresentation, DOL revokes or invalidates the labor certification, or the petition was approved in material error. An employer withdrawing an I-140 that has been approved for 180 days or more, or after the associated Form I-485 has been pending for 180 days or more, does not by itself revoke the petition (8 CFR 205.1(a)(3)(iii)(C)). The withdrawal does end that employer’s job offer, however. Unless the worker qualifies to move the case to a new job under INA 204(j), discussed below, the worker generally needs a new employment-based petition from a new employer to complete the green card, while keeping the earlier priority date.

     A suspension alone does not revoke an approved labor certification. Revocation under 20 CFR 656.32 requires a separate notice of intent to revoke, and the employer may submit rebuttal evidence within 30 days of receiving the notice before a final decision is made.

    Can you still extend H-1B status beyond six years?

    H-1B status is limited to six years, but the American Competitiveness in the Twenty-First Century Act (AC21) allows extensions in two situations. The suspension affects them differently.

    AC21 provision Who qualifies Effect of the suspension
    Section 106(a): one-year extensions (8 CFR 214.2(h)(13)(iii)(D)) A worker who holds or held H-1B status, for whom a PERM application or I-140 was filed at least 365 days before the H-1B petition’s requested start date, and no final decision has denied or revoked it. The worker must also continue to pursue the green card; USCIS generally will not grant the exemption where the worker failed to apply for Adjustment of Status or an immigrant visa within one year of an immigrant visa becoming available, unless the failure was due to circumstances beyond the worker’s control A pending PERM that is on hold has not been denied, so it may still support one-year extensions. A worker whose PERM was never filed cannot start the 365-day clock with a suspended employer
    Section 104(c): three-year extensions (8 CFR 214.2(h)(13)(iii)(E)) A worker who holds or held H-1B status, has an approved EB-1, EB-2, or EB-3 Form I-140, and, at the time USCIS decides the H-1B petition, is eligible for an immigrant visa but for the per-country limits No change announced. An approved I-140 by itself is not enough; the per-country backlog condition must also be met when USCIS adjudicates

    Two details in the one-year extension rule deserve attention. First, the regulation counts the 365 days from the filing of the labor certification or I-140, not from certification, so a PERM that has been pending and on hold for more than a year can still meet the timing test. Second, under 8 CFR 214.2(h)(13)(iii)(D), USCIS generally will not grant or extend the one-year exemption based on a labor certification that expired because no I-140 was filed within its 180-day validity period. That does not automatically disqualify a worker who has another qualifying PERM or I-140 filing, but for a worker near the six-year limit whose only basis is that certification, letting it lapse during the suspension can remove the ability to extend status, not only the green card case.

    The H-1B petition for an AC21 extension does not have to come from the same employer that filed the PERM or I-140. A suspension of PERM processing also does not by itself end a worker’s current H-1B status. The September 2026 reports that H-1B processing was also suspended for Cognizant and Cloudera came from news coverage, not a written USCIS notice, and should be treated as unconfirmed.

    Can you change employers and keep your priority date?

    Workers can change jobs during the suspension, but what they keep depends on how far their green card case has progressed. The key term is retention: a PERM filing establishes a priority date, but the right to carry that date to a new employer’s petition generally depends on an approved I-140.

    • Approved I-140. The priority date is generally retained and carries over to a new I-140 filed by a new employer (8 CFR 204.5(e)). The new employer generally has to start a new PERM process, but the worker keeps the earlier date.
    • Pending PERM or pending I-140. The priority date has been established but is not yet retained. A new employer’s PERM gets its own, later priority date.
    • I-485 pending for 180 days or more. Under INA 204(j), added by AC21 section 106(c), a worker may be able to move to a new job in a same or similar occupation and keep the existing green card case, using Form I-485 Supplement J. Under 8 CFR 245.25, the I-140 must be approved, or, if still pending when portability is requested, must later be approved and must have been eligible for approval when filed and through the date the I-485 had been pending 180 days. USCIS decides whether the new job is in a same or similar occupation.

    A job change also interacts with H-1B time. A new employer must file its own H-1B petition, and if the worker relies on AC21 for time beyond six years, the new petition must still show a qualifying PERM or I-140 basis. Getting advice before resigning avoids a gap in status.

    What happens if the investigation ends without a fraud finding, or with one?

    • No finding of fraud or willful misrepresentation. Under 20 CFR 656.31(d), the Certifying Officer decides each suspended application on its merits. Cases do not get an automatic approval; they return to ordinary processing, including the possibility of an audit.
    • Finding of fraud or willful misrepresentation. Under 20 CFR 656.31(e), DOL may deny pending applications and, for certified ones, start revocation under 656.32. DOL may also begin debarment under 656.31(f), which carries written notice and a right to request review under 656.26. A worker whose own case was affected could lose the priority date tied to it, and a false statement in a labor certification can create separate immigration consequences for the individual who made it.

    Which path applies depends on the outcome of the DOJ and OIG investigations, and no timeline for those has been announced.

    What should other employers do now?

    Employers outside the eight are not suspended, but the 2026 actions show which issues DOL and DOJ are focused on: recruitment that discourages U.S. applicants, and sponsorship during layoffs. Steps worth taking now:

    1. Review open PERM recruitment for anything that screens out qualified U.S. workers, such as unusual application channels or requirements not tied to business need.
    2. Make sure recruitment records are complete and retained for five years from the date of filing, as 20 CFR 656.10(f) requires, so an audit under 656.20 can be answered quickly.
    3. Check for layoffs in the occupation or a related occupation within the six months before filing. 20 CFR 656.17(k) requires notice to and consideration of laid-off U.S. workers in the area of intended employment.
    4. Confirm that the employer pays the costs of obtaining the labor certification, including the employer’s own attorney fees and recruitment costs. Under 20 CFR 656.12, the employer may not seek or receive payment of those costs from the worker. The worker may pay a separate attorney who represents only the worker.
    5. Map employees approaching the six-year H-1B limit whose PERM has not been filed, since a late filing cannot meet the 365-day test if processing slows further.
    6. Track the March 2026 proposed prevailing wage rule. If finalized as proposed, it would apply to prevailing wage requests pending on, or filed after, the effective date.

     Practical steps for affected workers

    Where your case stands What it means right now First step
    PERM not filed No priority date; no AC21 basis through this employer Calculate your six-year H-1B end date now
    PERM pending Priority date established but not retained; case on hold Confirm the filing date with your employer
    PERM certified, I-140 not filed 180-day validity clock running from the certification date Ask for the certification date and the I-140 filing plan
    I-140 approved Priority date generally retained; three-year AC21 extensions possible if the per-country condition is met Keep a copy of the approval notice

    If you or your employees are affected by a PERM suspension, or you want to review PERM compliance before your next filing, you can contact Ashoori Law or request a consultation. Ashoori Law is a U.S. immigration law firm focused on employment-based, family-based, business, and investment immigration.

    This article is general information, not legal advice; consult a licensed immigration attorney about your case.

    Frequently Asked Questions

    • Did DOL suspend the entire PERM program?
      No. As reported, the October 8, 2026 announcement covered PERM applications involving eight named employers: Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. Other employers can file, and DOL continues to process their applications.
    • Is a PERM suspension the same as debarment?
      No. A suspension under 20 CFR 656.31(b) pauses processing during an investigation. Debarment under 656.31(f) is a penalty of up to three years that requires written notice and review rights. None of the eight employers was on DOL’s debarment list as of October 14, 2026.
    • How long will the suspension last?
      No end date was announced. Under 656.31(b), an initial suspension can last up to 180 days after it began, after which the National Certifying Officer may resume processing in whole or in part or extend the suspension while the investigation continues. The Cloudera suspension reaches its first review point in early November 2026 if it began on the May 12 announcement date.
    • Will I lose my priority date if my PERM is pending with one of these employers?
      Not because of the suspension alone. The priority date is generally the date DOL accepted the PERM for processing. It can be used to file for a green card once the PERM is certified, an I-140 is filed, and a visa is available, and it is retained for later petitions only after an I-140 is approved. If the PERM is denied on any ground, it cannot support the case.
    • My I-140 is already approved. Am I affected?
      Officials did not announce any change to approved I-140s. An approved I-140 generally keeps its priority date unless USCIS revokes it for fraud or willful misrepresentation, DOL revokes or invalidates the labor certification, or the approval was a material error.
    • My PERM was certified but my employer has not filed the I-140. Does the suspension pause the 180-day deadline?
      Nothing announced pauses it. The labor certification is valid for 180 calendar days from the certification date under 20 CFR 656.30(b), and if no I-140 is filed in that window, the certification expires. USCIS generally will not grant a one-year AC21 extension based on a certification that expired for that reason.
    • Can I still get H-1B extensions beyond six years?
      Workers who hold or held H-1B status, have an approved EB-1, EB-2, or EB-3 I-140, and are waiting only because of per-country limits when USCIS decides the petition can generally extend in three-year increments under AC21 section 104(c). One-year extensions under section 106(a) require a PERM or I-140 filed at least 365 days earlier that has not been denied or revoked, plus continued pursuit of the green card. Workers whose PERM was never filed have no AC21 basis through a suspended employer.
    • Can I change employers and keep my place in line?
      With an approved I-140, the priority date is generally retained and transfers to a new employer’s I-140, though the new employer generally needs a new PERM. Without an approved I-140, a new employer’s case starts with a new priority date.
    • Does the suspension affect EB-2 NIW, EB-1, or L-1 cases?
      Officials did not announce that it does. Those categories do not require a PERM labor certification, so a PERM suspension does not directly reach them, though separate agency action is always possible.
    • Does the suspension affect my spouse’s H-4 status or H-4 EAD?
      Not directly. H-4 status depends on the principal’s H-1B status and the dependent’s own authorized stay. The suspension does not end H-1B status, but if the principal cannot extend beyond six years, continued H-4 eligibility for dependent spouses and children is at risk. The outcome depends on other filings, any change of status, departure, and applicable grace-period rules, and needs case-specific review.
    Share this post | Ashoori Law
    Posted in ,