Link to Overview Overview
On Oct. 8, 2026, administration officials announced that the U.S. Department of Labor (DOL) would stop accepting new permanent labor certification (PERM) applications and processing pending applications involving companies such as Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. As of Oct. 9, DOL had not published a Federal Register notice, Office of Foreign Labor Certification directive, or detailed release specifying the action’s exact effective date, legal basis, scope, or duration.
Link to Background Background
PERM is the DOL process through which an employer generally obtains labor certification before sponsoring a foreign worker for permanent residence. DOL must determine that there are not sufficient able, willing, qualified, and available U.S. workers for the position and that employment of the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers. A timely PERM filing may be critical for certain H-1B employees to qualify for extensions beyond the normal six-year limit.
Link to Government Announcements and Timing Government Announcements and Timing
The Oct. 8 action was announced at a White House campus press conference involving Vice President JD Vance, Labor Secretary Keith Sonderling, and Attorney General Todd Blanche. Sonderling stated that DOL would not accept new or process pending PERM applications involving the companies. Officials did not announce a fixed effective date or expiration date.
The announcement followed earlier actions. On May 12, 2026, DOL announced a 180-day suspension of PERM processing for Cloudera, with a possible extension. On July 8, DOL’s Office of Inspector General announced a broader H-1B and PERM investigation involving alleged fraudulent applications, coercive wage kickbacks, worker exploitation, below-wage labor, forced labor, and potential human trafficking. On Sept. 18, DOL-OIG stated that applications involving Cognizant and Cloudera had been suspended pending investigation.
Link to Suspension Versus Debarment Suspension Versus Debarment
The Oct. 8 action might be best described as an announced processing suspension, not a final PERM debarment. Under 20 C.F.R. § 656.31(b)(1), DOL may suspend PERM processing when an employer, attorney, or agent is under investigation for possible fraud or willful misrepresentation connected to the program. Such a suspension may initially last up to 180 days and may be extended under the circumstances described in § 656.31(b)(2).
Conversely, formal debarment is governed by § 656.31(f). The regulation permits debarment for willful provision of false or inaccurate information, a pattern or practice of noncompliance, failure to comply with audit or supervised-recruitment requirements, and other substantial failures to comply with the PERM regulations. A processing suspension during an investigation does not itself establish a final violation.
While the language of the Oct. 8 announcement appears to reflect the conditions for a suspension, rather than debarment, DOL has not publicly confirmed which provision is the legal basis for the announced suspensions.
Link to Considerations for Employers Operating PERM Programs Considerations for Employers Operating PERM Programs
The Oct. 8 announcement signals increased agency scrutiny and coordination between DOL and other federal agencies concerning PERM compliance. Employers operating PERM programs should consider the following measures:
- Conduct a privileged compliance review. Review active and recently completed PERM cases for consistency among company’s official job descriptions and minimum requirements, prevailing-wage requests, recruitment materials, ETA Forms 9089, work conditions used to prepare LCA and H-1B filings, and internal employment records.
- Review the effect of layoffs on PERM recruitment. Formalize a process for identifying potentially qualified U.S. workers laid off in the area of intended employment and in occupations related to positions being sponsored.
- Create a formal recordkeeping process for PERM recruitment. Audit existing recruitment records. Confirm that advertisements, résumés, interview records, applicant-disposition notes, recruitment reports, and supporting business-necessity evidence are complete and retained for the required period.
- Assess recruitment practices for independence and functionality. Employers may wish to verify that application channels work, applications are reviewed consistently, and potentially qualified U.S. applicants are not rejected for reasons that are inconsistent with the requirements stated in the PERM application.
- Audit H-1B wages and working conditions. Confirm payment of the required wage and review whether compensation, benefits, work locations, benching practices, and working conditions comply with the applicable labor condition application and H-1B requirements.
- Prepare for audits and investigations. Designate responsible personnel, preserve relevant documents, and establish protocols for agency site visits, audits, subpoenas, employee interviews, and government requests for information.
- Avoid treating processing volume as a substitute for compliance analysis. A large H-1B or PERM program is not itself evidence of wrongdoing, but high-volume programs may present greater operational risk if recruitment, wage, and recordkeeping controls are fragmented.
Link to Conclusion Conclusion
The Oct. 8, 2026, announcement signals a significant escalation in federal scrutiny of major employers’ use of the PERM and H-1B programs. Until DOL publishes written guidance or company-specific notices, employers should closely monitor developments and may wish to address compliance and employee-timing risks proactively.