US Immigration Authorities Suspend PERM for Eight Major Companies

The US Department of Labor has suspended the permanent employment program PERM for Microsoft, Adobe, and six of the largest IT companies, including Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL, and Capgemini. The reason is investigations into suspected systematic H-1B visa fraud and the displacement of American workers by lower-paid foreign employees.

What the PERM Suspension Means for Applicants

The PERM suspension means that employees of these companies can no longer file for permanent residency (Green Card) in the US through their employer. This blocks one of the main immigration paths for thousands of workers who are already in the US on work visas and awaiting processing of their green card applications.

This administrative decision effectively equates all employees of these companies with those involved in fraud, even though most of them are legitimate professionals. The Department of Labor claims that employers used H-1B visas as a tool for systematically displacing American workers and cutting wage costs by hiring foreign employees with lower salary requirements.

The Investigation and the Administration’s Allegations

The decision is based on criminal investigations led by the Department of Labor’s inspector. The administration insists that H-1B visas are systematically used as a “fraud pipeline,” with employers and universities acting as intermediaries, helping foreign workers with falsified qualifications take jobs from Americans.

The Department of Labor stated it had uncovered $22 billion in damages from visa fraud. According to administration officials, the problem begins with universities and companies that turn into “visa mills,” and continues through employment that later becomes a pathway to permanent residency and citizenship for foreign workers and their families.

Rising Requirements for New H-1B Applicants

In addition to suspending PERM, the administration has made obtaining the H-1B visa itself more difficult. The filing fee has been raised from $100,000 to $103,000, which is currently being challenged in court. As a result of these changes, new H-1B applicants are struggling even to secure a consular interview for visa processing and actual departure to the US.

Alternative Paths for Finding Work in the US

Facing these restrictions, foreign professionals are considering alternative visa categories. The O-1 visa is positioned as the most promising replacement for H-1B: it does not require a minimum salary, applicants can self-sponsor through their own company, and must demonstrate extraordinary ability. The O-1 approval rate stands at 94% — in 2025, 29,733 petitions were approved out of 31,681 filed.

Another option is EB-1, a green card category for individuals with extraordinary ability. On this path, applicants can self-sponsor without employer assistance, fully eliminating the impact of PERM program suspensions. Even if an applicant’s profile meets only 80–90% of requirements, the remainder can be developed independently.

Legal Prospects and Future Changes

The legal community suggests that the PERM suspension could be challenged in court, as it applies to all employees of these companies without individual assessment of guilt. If the companies jointly file a lawsuit, they have reasonable chances of success.

The administration may attempt to introduce additional restrictions in the coming weeks, as midterm elections are approaching. After the elections, the ability to introduce new rules may depend on shifts in the political balance in Congress.

What Applicants Should Do Right Now

For workers already in the US on H-1B visas and affected by the PERM suspension, it is recommended to explore transitioning to O-1 status or filing for EB-1 independently. These categories do not depend on the employer and are unaffected by current restrictions.

For prospective H-1B applicants abroad, the suspension of visa interviews means a need to reconsider their strategy for entering the US. Alternative work visas, student visas, or investment-based routes may be more viable under current conditions.