Note: As of publication, DOL has not issued an official press release, Federal Register notice, or other written guidance on this action. Everything in this update is based on statements made at the October 8 White House news conference and on subsequent media and legal reporting. We will update this post when official documentation becomes available.
At the news conference, the Department of Labor (DOL) announced that it is halting intake of new PERM applications, and pausing review of those already pending, for eight companies: Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini.
What was said, and what wasn’t
At the news conference, administration officials accused the named companies of misusing employment-based immigration programs. Labor Secretary Keith Sonderling said Microsoft and Adobe were suspended because of active federal investigations. Those are allegations, not findings. The agencies conducting the investigations and the subject matter haven’t been identified, and nothing announced so far tells us how any investigation will end. Several of these companies have drawn public immigration scrutiny before.
Legal basis and how long it could last
DOL has not cited a specific regulation or stated how long the suspensions will last. One possible source of authority is 20 C.F.R. § 656.31(b), which lets DOL suspend PERM processing while it investigates possible fraud or willful misrepresentation. If DOL does rely on that provision, the first suspension can run up to 180 days and can be extended while an investigation or court proceeding remains open. Affected employers shouldn’t assume processing will restart on its own at the six-month mark. The authority and timeline for each company should be confirmed in DOL’s written notices once they are available.
What to watch
For now, this is a broad pause limited to the named technology and outsourcing companies. It doesn’t reach employers generally, but it is a signal for others to be careful, particularly those going through layoffs or reductions in force.
The next developments to watch are:
- Official DOL documentation describing which entities and applications are covered
- The length of each company’s suspension and the criteria for lifting it
- Any administrative or court challenges
- Separate agency action that could change how approved certifications or other immigration benefits are treated
Meltzer Hellrung perspective
For most employers, this is not a compliance emergency, but it is a signal. The companies named are among the largest H-1B and PERM filers in the country, and employers with smaller programs are not the target of this action. The more important development for HR and legal teams is the stated direction: the administration has indicated that it intends to connect layoffs with immigration sponsorship when selecting employers for investigation, and the discussion at the news conference reinforced that intent.
Treat layoffs as an immigration issue, not only an employment issue. A reduction in force can affect pending and planned sponsorship even when no foreign national employees are in the affected group. We recommend that HR and General Counsel bring your Meltzer Hellrung attorney into RIF planning early, before decisions are finalized and communicated, so that we can:
- Review how the timing, scope, and affected roles of the RIF interact with current and upcoming PERM and H-1B filings
- Identify sponsorship activity in the same or related roles that may draw scrutiny
- Help ensure your documentation and public statements are consistent with your sponsorship positions
Consider the competitive upside. The workforces at Microsoft, Adobe, and the other named companies are likely to be unsettled, particularly those whose green card cases are now on hold. Employers with stable, well-run immigration programs can use that as a recruiting advantage. Your Meltzer Hellrung attorney can help you assess whether and how to position your program to attract this talent.
