PERM suspension could trap tech workers in a green card visa cycle

The US suspension of Microsoft, Adobe and six other IT services companies from the Permanent Labour Certification (PERM) program could leave some foreign workers with fewer options to move from temporary work visas to permanent residency. The move does not cancel existing H-1B visas, but workers whose green card process has not started or is still pending may face delays. For those nearing the H-1B visa limit, the timing could affecr whether they qualify for extensions that depend on progress in the green card process.

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The Department of Labor's action targets PERM, a key step many employers must complete before sponsoring a worker for an employment-based green card. The companies named in the latest crackdown are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.


Speaking to the press on Thursday, US Vice President JD Vance cited alleged abuse of the programe for putting these companies under investigation. While the suspension will affect the companies' PERM filings, they do not amount the general suspension of H-1B visas.

Why workers could get caught in a visa cycle

H-1B visas are temporary. Workers generally can remain in that status for up to six years, although some can qualify for extensions beyond the limit under speicific rules. Many workers rely on an employee-sponsored green card process to build a longer-term future in the US.

The process can take years. PERM is usually the first step. The employer must test the US labour markets for a permanent job, and seek Department of Labour certification. The employer, not the employee, file the application, The employee can then file an I-140 immigration petition with the US Citizenship and Immigration Servives (USCIS). A worker may later apply for a green card when ab immigrant cisa is available and other requirements are met.

If an employer cannot start a PERM case during the suspension, a worker may have to keep relying on temporary status while waiting for another route or a change in the rules. If a worker changes jobs, the new company may need to begin a new green card process, depending on how the existing case has progressed.

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What happens to H-1B visa extensions?

H-1B workers generally face a six-year limit. Some can qualify for extensions beyond it if a qualifying PERM application or immigrant petition was filed at least 365 days before the worker reaches that limit. Others may qualify for extensions of up to three years if they have an approved I-140 and cannot yet obtain permanent residency because an immigrant visa is unavailable.

This makes the stage of a worker's case important. A worker whose employer filed STEM well before the six-year deadline may have options that are not available to someone whose employer has not started the process. A suspension does not automatically cancel a worker's current H-1B approval, but it could prevent some employees from reaching a milestone needed for a future extension.

Can workers switch jobs?

The PERM suspension does not itself prevent an eligible H-1B worker from changing employers. Under H-1B portability rules, workers who meet the requirements can generally begin working for a new employer once that employer properly files a non-frivolous H-1B petition, or on the petition’s requested start date if that is later.

But a job switch does not necessarily transfer the worker’s PERM case. PERM applies to a specific job opportunity, employer and area of intended employment. If the case has not reached a stage that provides other options, the new employer may need to start a separate green card process.

Some workers further along in the process may have more flexibility. For example, certain employment-based green card applicants can change jobs after their I-485 adjustment application has been pending for at least 180 days, if the new job is in the same or a similar occupational classification and other requirements are met. This does not apply to every worker.

How long could the wait become?

PERM cases already take time. The Department of Labor’s FLAG system reported an average processing time of 336 calendar days in August 2026. Individual cases can take longer or shorter, and a suspension adds uncertainty because the government has not announced an end date for the restrictions. flag.dol.gov

The impact will depend on whether a worker’s PERM application is not yet filed, pending, approved, or followed by an I-140 or I-485 filing. These steps have different consequences for extensions and future job changes.

What should affected workers check?

Workers at the named companies should confirm where their green card case stands and when their current H-1B status expires. They should also ask whether their employer has filed PERM or an I-140, and whether they may qualify for an extension based on those filings.

Workers considering a job change should check how a move would affect both their H-1B status and green card process before resigning. A new employer may be able to file an H-1B petition, but the PERM case may need to start over. Because options depend on the worker’s case stage and deadlines, individual immigration advice is important.

For now, the suspension blocks the named companies from using PERM while the restrictions remain in force. They key question for workers is whether they can maintain temporary status, and keep a path to permanent residency open, while that process is paused.