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Labor Department's PERM freeze at eight firms puts H-1B staff near the six-year cap at risk

Labor Secretary Keith Sonderling said the government will stop taking or processing PERM filings for Microsoft, Adobe and six outsourcing firms. Attorneys told Business Insider the exposure sits with H-1B staff near the six-year cap.

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What happened

  • Vice President JD Vance said Microsoft abused PERM by laying off American workers and hiring foreign workers who he said were paid less.
  • Some immigration attorneys interviewed by Business Insider called the suspensions the latest in a series of US measures targeting foreign workers.
  • Attorneys said H-1B employees at Microsoft, Adobe and the other named companies should seek counsel and get clarity about their status.
  • Some attorneys expect a lawsuit arguing that the suspensions fall outside the Labor Department's legal authority.

Why it matters

  • Who's exposed exposure Microsoft, Adobe and the six outsourcers could lose H-1B staff whose extensions past year six depended on green-card progress that the freeze has stopped.
  • What doesn't add up contradiction Vance says the foreign hires were paid less and Microsoft says H-1B staff earn the same as peers in comparable work, so the facts behind the abuse charge are disputed before any court takes up the authority question.
  • What it sets up precedent Justifying a company-level PERM freeze by layoffs paired with foreign hiring gives the administration a test it can apply to any sponsor that cuts US staff while filing certifications.

The H-1B visa has a statutory maximum of six years. Loren Locke, an attorney at Locke Immigration Law in Atlanta, said it can be extended past that point if the worker has made sufficient progress toward a green card [6]. Matthew Maiona, an immigration attorney at Maiona Ward in Boston, said that by suspending new and pending PERM applications, the administration left a very specific group of H-1B holders in limbo [19].

That group is the workers near the end of the six-year term. In theory, Maiona said, a Microsoft or Adobe employee six years into an H-1B could now be ordered to appear in immigration court [20]. "You could be in trouble if you cannot qualify for another non-immigrant visa classification," Maiona said [21]. "You may have to leave the United States," Maiona added [22].

Locke put the risk lower. She said workers face potential removal only if they have exhausted their H-1B eligibility and cannot secure an extension or another legal basis to stay, of which there are several [8]. "If the goal is to crush H-1B workers, it's not great, but it's not really crushing them either," Locke said [10]. I think both readings hold: Locke's for most of the affected staff, Maiona's for the worker at year six with no second visa class. Both attorneys spoke in general terms, without a client's circumstances in front of them [13].

The suspension covers eight companies [7]. Sonderling listed Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL Technologies and Capgemini [2]. One attorney suggested only a relatively small group of workers would be affected [12]. For an H-1B employer outside that list, the freeze does not apply this quarter. What does reach those employers is the reasoning the administration gave for it [2].

Vice President JD Vance put a number on the charge. "If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants," Vance said [18]. Microsoft wrote in a blog post on Thursday that "the vast majority of Microsoft employees in the United States are Americans" [4]. PERM requires an employer to show that no qualified and available US worker could fill the role [3]. Vance's complaint sets Microsoft's layoffs of US staff against that certification [17].

The legal timetable is short. "I assume, by next week, we will start seeing lawsuits," said Kripa Upadhyay, co-chair of the Immigration & Global Mobility Practice at Buchalter, a Seattle firm [24]. Todd Pomerleau, a Boston immigration attorney, pointed to uncertainty around the extent and enforcement of the suspensions [15]. For an individual worker, the timetable that matters is the six-year limit [6].

Employers outside the list face a hiring decision this quarter. "Most people will either be able to wait it out or have time to switch jobs," Locke said [9]. A new employer sponsoring one of those workers generally has to complete its own PERM step first [3]. If a court rules the suspensions exceed the Labor Department's authority, the eight companies go back to filing [23]. If the suspensions survive that first test, sponsored staff at the eight firms keep using up the six years on their visas with no PERM progress to extend them [6].

What to watch

  • Whether lawsuits arrive within the week Upadhyay predicted, and whether a court pauses the freeze on Labor Department authority grounds.
  • Whether the Labor Department names employers beyond the eight; any addition would extend the freeze to other H-1B sponsors.
  • Whether Labor clarifies how it will enforce the suspension on pending PERM cases, the uncertainty Pomerleau pointed to.

Clarity's read

What the record supports and how the coverage leans. The claims behind it follow.

Reality

Evidence72
Adoption40
Hype gap+30
Incentives60
Confidence65

Perspective Coverage

25 publishers
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Operator 43%
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Claim ledger

Ranked by verification strength, evidence, and original report placement.

  1. [1]

    The Trump administration declared on Thursday that it was suspending Microsoft and Adobe from a federal visa sponsorship program.

    Reported Supported Source: Business InsiderView cited source
  2. [2]

    Labor Secretary Keith Sonderling said at a press conference that the government would not accept any new PERM applications or process any pending ones for the named companies: Microsoft, Adobe, and tech outsourcing firms Cognizant, Infosys, Tata, Wipro, HCL Technologies and Capgemini.

    Reported Supported Source: Labor Secretary Keith Sonderling, via Business InsiderView cited source
  3. [3]

    The Permanent Labor Certification (PERM) program is an initial step employers generally must complete before sponsoring a worker for an employment-based visa, requiring them to show that no qualified and available US workers could fill the role.

    Reported Supported Source: Business InsiderView cited source
  4. [4]

    A Microsoft blog post published Thursday said "the vast majority of Microsoft employees in the United States are Americans."

    Reported Supported Source: Microsoft blog post, via Business InsiderView cited source
  5. [5]

    Microsoft said it pays its H-1B employees "the same as any other employees doing comparable work."

    Reported Supported Source: Microsoft, via Business InsiderView cited source
  6. [6]

    H-1B visas have a statutory maximum of six years but can be extended past that if workers have made sufficient progress toward obtaining a green card, Loren Locke of Locke Immigration Law in Atlanta said.

    Reported Supported Source: Loren Locke, via Business InsiderView cited source
  7. [7]

    Sonderling's list names eight companies: Microsoft and Adobe plus six outsourcing firms.

    Derived Supported
  8. [8]

    Locke said workers would only face potential removal if they exhausted their H-1B eligibility and could not secure an extension or another legal basis, of which there are several, to remain in the country.

    Reported Supported Source: Loren Locke, via Business InsiderView cited source
  9. [9]

    "Most people will either be able to wait it out or have time to switch jobs," said Loren Locke.

    Reported Supported Source: Loren Locke, via Business InsiderView cited source
  10. [10]

    "If the goal is to crush H-1B workers, it's not great, but it's not really crushing them either," Locke said.

    Reported Supported Source: Loren Locke, via Business InsiderView cited source
  11. [11]

    Some of the immigration attorneys said the suspensions were the latest in a series of US measures targeting foreign workers.

    Reported Supported Source: Immigration attorneys interviewed by Business InsiderView cited source
  12. [12]

    One attorney suggested the suspensions would only impact a relatively small group of workers.

    Reported Supported Source: An immigration attorney interviewed by Business InsiderView cited source
  13. [13]

    The attorneys spoke in general terms about the advice they would give without knowing a client's specific circumstances or status.

    Reported Supported Source: Business InsiderView cited source
  14. [14]

    Business Insider spoke to eight immigration attorneys on Thursday after the announcement.

    Reported Supported Source: Business InsiderView cited source
  15. [15]

    Todd Pomerleau, a Boston immigration attorney, said that with uncertainty around the extent and enforcement of the suspensions, "anybody who's concerned about their immigration status needs to seek competent counsel."

    Reported Supported Source: Todd Pomerleau, via Business InsiderView cited source
  16. [16]

    Immigration attorneys told Business Insider that employees on H-1B visas at Microsoft, Adobe and the other named companies should seek counsel and get clarity about their status.

    Reported Supported Source: Immigration attorneys interviewed by Business InsiderView cited source
  17. [17]

    Vice President JD Vance said at a press conference on Thursday that Microsoft had "abused" the PERM system by laying off American workers and using it to hire foreign ones, who he said were paid less.

    Reported Contested Source: Vice President JD Vance, via Business InsiderView cited source
  18. [18]

    "If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants," Vance said.

    Reported Contested Source: Vice President JD Vance, via Business InsiderView cited source
  19. [19]

    Matthew Maiona, an immigration attorney at Maiona Ward in Boston, said that in suspending new and pending PERM applications, the administration left a very specific group of H-1B visa holders in limbo.

    Reported Contested Source: Matthew Maiona, via Business InsiderView cited source
  20. [20]

    Maiona said a hypothetical employee at Microsoft or Adobe, six years into an H-1B visa, could now, in theory, be ordered to appear in immigration court under the suspension.

    Reported Contested Source: Matthew Maiona, via Business InsiderView cited source
  21. [21]

    "You could be in trouble if you cannot qualify for another non-immigrant visa classification," Maiona said.

    Reported Contested Source: Matthew Maiona, via Business InsiderView cited source
  22. [22]

    "You may have to leave the United States."

    Reported Contested Source: Matthew Maiona, via Business InsiderView cited source
  23. [23]

    Some immigration attorneys expected the move to be challenged in a lawsuit arguing the suspensions are outside the Labor Department's legal authority.

    Reported Insufficient Source: Immigration attorneys interviewed by Business InsiderView cited source
  24. [24]

    "I assume, by next week, we will start seeing lawsuits," said Kripa Upadhyay, co-chair of Buchalter's Immigration & Global Mobility Practice, a Seattle firm.

    Reported Insufficient Source: Kripa Upadhyay, via Business InsiderView cited source

Sources

23 independent publishers whose own reporting we read for this story.

  1. abcnews.com

    1 article · October 8, 2026

    Vance suspends Microsoft from a green card program to crack down on alleged fraud - ABC News
  2. arstechnica.com

    1 article · October 9, 2026

    Trump administration targets Microsoft in new immigration crackdown
  3. bbc.co.uk

    2 articles · October 8, 2026

    White House blocks Microsoft from foreign worker hiring program
  4. bbc.com

    1 article · October 8, 2026

    White House blocks Microsoft from foreign worker hiring program
  5. businessinsider.com

    3 articles · October 8, 2026

    Vance says the US is suspending permanent visa residency program for Microsoft and Adobe
  6. businesstoday.in

    1 article · October 8, 2026

    Setback for IT giants: US suspends Infosys, Tata, Wipro, HCL, Cognizant as Vance targets H 1B abuse - BusinessToday
  7. engadget.com

    2 articles · October 8, 2026

    US suspends permanent residency program for Microsoft, Adobe and other tech companies
  8. geekwire.com

    2 articles · October 9, 2026

    Microsoft responds to White House immigration crackdown as Trump honors Nadella – GeekWire
  9. gizmodo.com

    1 article · October 8, 2026

    Trump Admin Suspends Microsoft From Sponsoring H-1B Visa Holders for Green Cards
  10. hcamag.com

    1 article · October 8, 2026

    U.S. freezes green card applications at Microsoft, Adobe and more
  11. implicator.ai

    1 article · October 8, 2026

    US Suspends Microsoft and Adobe From Green Card Program
  12. interestingengineering.com

    1 article · October 8, 2026

    US suspends Microsoft, Adobe and 6 IT firms from key green card certification program
  13. latimes.com

    1 article · October 8, 2026

    White House targets Stanford, Caltech and tech giants in visa crackdown - Los Angeles Times
  14. news.bloomberglaw.com

    2 articles · October 8, 2026

    Microsoft Has Abused Visa Program, US Will React, Vance Says
  15. newsweek.com

    1 article · October 9, 2026

    Green Card Update: Map Shows Nations Most Exposed to Trump Admin Visa Block - Newsweek
  16. nextgov.com

    1 article · October 8, 2026

    White House targets tech giants with H-1B visa suspension - Nextgov/FCW
  17. pcgamer.com

    1 article · October 8, 2026

    US government accuses Microsoft of replacing American workers with 'foreign indentured servants,' then gives Satya Nadella a medal | PC Gamer
  18. siliconangle.com

    2 articles · October 8, 2026

    The White House bars Microsoft from sponsoring green card applications as JD Vance accuses it of fraud
  19. techcrunch.com

    2 articles · October 8, 2026

    US bars Microsoft, Adobe, and major IT firms from green card program for skilled foreign workers
  20. techradar.com

    1 article · October 9, 2026

    US bars Microsoft, Adobe, and major IT firms from green card program for skilled foreign workers to 'protect American jobs' | TechRadar
  21. theguardian.com

    1 article · October 8, 2026

    Microsoft suspended from applying for green cards for H-1B workers, JD Vance says
  22. thenextweb.com

    2 articles · October 9, 2026

    US suspending permanent residency programme for Microsoft and Capgemini, officials say
  23. theverge.com

    1 article · October 8, 2026

    Trump administration says Microsoft ‘abused’ worker visa program and is cutting off access
  24. 8 IT firms including TCS, Infosys suspended from US green card programme: How does it hit Indian professionals? - The Times of India
  25. wired.com

    1 article · October 8, 2026

    Trump Administration Cuts Off Access to a Major Immigration Program for Workers at Microsoft and Adobe

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