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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteThe reported action, announced on Thursday, October 8, 2026, suspends eight technology employers from processing under the Permanent Labor Certification Program, known as PERM. It does not suspend H-1B work status. Harish Bijoor, founder of Harish Bijoor Consults Inc., expects that workers waiting for permanent residency at these firms may move to employers that can still sponsor their applications. That is a forecast, not a measured outcome, and the reporting does not say how many people would move.
What was reported
The Associated Press reports that the administration announced a suspension affecting Microsoft and several other firms from a program that lets foreign workers seek green cards through employment. The labor-certification stage requires an employer to advertise the job in the United States before asking the Department of Labor to certify that no qualified American worker is available. Reuters names the eight firms as Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
The coverage describes the action as a suspension of PERM processing for these named employers. Based on the reports available as of October 9, 2026, no general suspension of H-1B visas or H-1B status has been reported. Official Department of Labor notice text was not available for this article, so details such as how long the suspension lasts, which cases it covers and how it is applied should be confirmed from the agency before acting on them.
PERM and H-1B are different steps
Much of the confusion around this story comes from treating two separate immigration tools as one. Axios draws the distinction clearly: H-1B is temporary nonimmigrant status for skilled work, while PERM is a labor-certification step that can form part of an employer-sponsored green-card path.
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| Feature | PERM labor certification | H-1B status |
|---|---|---|
| Purpose | First step in an employer-sponsored permanent-residency (green card) path | Temporary work status for skilled workers |
| Who administers the step | Department of Labor, after the employer advertises the job | Nonimmigrant visa and status process |
| Status in this reported action | Processing reportedly suspended for the eight named employers | No general suspension reported |
| Effect on a worker | Can delay or block a green-card path tied to that employer | Governs the right to work temporarily; not the subject of this reported action |
A worker on H-1B status at one of the named companies is not, on the reporting so far, in the same position as a worker whose green-card case depends on a pending PERM filing. Individual circumstances vary, and the reports do not establish how any particular case will be treated.
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The named employers and the stated rationale
Vice President JD Vance said of Microsoft: “Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers.” That sentence, as reported by the Associated Press, communicates the administration’s position on hiring.
Labor Secretary Keith Sonderling, as quoted in Reuters’ report, said: “We will not accept any new or process any pending permanent labor certification applications involving these companies.” That is the operational statement of the suspension.
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The reported rationale includes allegations of fraud and concern about the hiring of American workers. These are the administration’s stated reasons. They have not been adjudicated as findings by a court in the reporting available here, and the companies’ responses should be read alongside them.
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LatestLY, reporting on October 9, 2026, attributes to Bijoor the view that employees awaiting permanent residency may move toward firms that can still sponsor their applications, and that this could prompt movement of talent across the technology industry. The report does not include a figure for how many workers would change employers, and no measured labor-market effect has been established. Treat his view as an informed expectation about incentives, not as a demonstrated trend.
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What this could mean for your money if you work in this situation
If you are a worker or a family member at one of the named firms, or you are considering a job offer from one, the practical questions are financial as much as legal. The following steps are general planning points, not legal advice.
- Get your case status in writing. Ask your employer’s HR or immigration team whether your PERM filing is affected and what they will do next. Keep copies of every notice you receive.
- Talk to an employment-immigration attorney before changing jobs. Whether a change of employer affects a pending case depends on where the case stands. Do not assume a new offer will transfer your progress.
- Keep a cash buffer. Uncertainty about a job, a sponsor or a timeline is a reason to hold more liquid savings than usual, particularly if your household depends on one income.
- Compare offers on total compensation. Look at base pay, bonus, equity vesting, relocation support and any sponsorship costs the new employer will or will not cover.
- Document your earnings and tax records. Pay stubs, W-2s and employer letters will be needed for any future application, job move or lender review.
- Be cautious about rumors. Forecasts about mass movement are not evidence that your employer will lose sponsorship or that a specific competitor will hire you.
What is not established
- How many workers at the named firms have pending PERM cases.
- How many workers, if any, will change employers because of this action.
- Whether the suspension is temporary or permanent, and what conditions could lift it.
- Whether the fraud allegations have been proven.
- Whether workers on H-1B status must leave the United States. The reporting does not say so.
Because the official notice was not available for this article, anything beyond the reported announcement, the named firms and the officials’ stated positions should be checked against the Department of Labor and a qualified immigration attorney.
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The Bottom Line
For most readers, the story is about one employer-based route to a green card, not about the H-1B visa itself. The sensible response is to confirm your own case status, protect your cash position and get individual legal advice before making a move based on headlines.
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