[REVISION HISTORY]

US enforcement of PERM and changes to work authorization

Updated 18 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-23 05:14 UTC → 2026-10-23 08:55 UTC · added ~~removed~~

The United States government has initiated a crackdown on the permanent labor certification (PERM) program, targeting major technology firms as part of a broader investigation into visa fraud and labor market abuses. In September 2026, the Department of Labor suspended PERM filings for Cognizant and Cloudera. Labor Department Inspector General Anthony D’Esposito announced the enforcement, stating that “threats to American workers will NOT be tolerated.” By October 2026, the administration expanded enforcement to include Microsoft, Adobe, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, and Capgemini. Effective October 8, 2026, the Department of Labor will no longer accept new or process pending PERM applications for these eight companies, effectively freezing the pathway to employment-based green cards. While this does not prevent companies from hiring through H-1B visas, it complicates the transition from H-1B status to permanent residency. Vice President JD Vance accused Microsoft of ~~abusing the immigration system by~~ replacing domestic workers with foreign labor, alleging that “for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants.” In mid-October 2026, the Department of Homeland Security (DHS) introduced further regulatory ~~shifts affecting work authorization. A new final rule eliminates~~ shifts, including eliminating automatic extensions for ~~many~~ certain Employment Authorization Document (EAD) renewal ~~applicants, such as H-4 spouses~~ applicants and ~~asylum seekers, requiring formal USCIS approval before work can continue. Additionally, DHS proposed ending the practice of~~ proposing to end deference to prior approvals for H-1B and L-1 ~~visa~~ extensions. ~~By late October 2026,~~ Industry data reflects the impact of these ~~policies became evident in visa registration data.~~ policies. A Congressional Research Service report indicated ~~that Cognizant recorded~~ a 100% decline in H-1B registrations for Cognizant for fiscal 2027, while Infosys and TCS reduced entries by 91% and 95%, respectively. ~~While~~ Regarding the ~~freeze on~~ PERM ~~applications significantly impacts Indian nationals seeking permanent residency, industry groups like~~ freeze, TCS reported its filings dropped to two in 2025-26 from 513 the previous year. Industry group Nasscom noted that some firms ~~have already been~~ are shifting toward local ~~recruitment.~~ recruitment; Wipro reported that over 80% of its US workforce is hired locally.

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