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US suspending permanent residency programme for Microsoft and Capgemini, officials say

October 8, 2026 Emily Chen Clock

US Suspending Permanent Residency Programme for Microsoft and Capgemini, Officials Say

JD Vance said on Thursday that Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini are being suspended from PERM, the labour certification employers need before sponsoring a worker for permanent residency, with no published end date and no criminal charges brought so far.

Background

  • October 8, 2026 - 3:23 pm

    • Microsoft Experience Center in New York City.
      • Credit: bluestork via Shutterstock

  • The US is suspending eight technology firms from PERM, the labour certification step that precedes an employer-sponsored green card, citing alleged fraud.

  • Capgemini is the only European company named, and North America is its fastest-growing region at 29% of group revenue.

The Suspended Companies

  • Cognizant
  • Infosys
  • Tata
  • Wipro
  • HCL
  • Capgemini
  • Microsoft
  • Adobe

Labor Department Actions

  • Labor Secretary Keith Sonderling named the companies at a White House press conference reported by Reuters.
  • Labor Inspector General Anthony D’Esposito said subpoenas had been served.
  • Microsoft did not immediately respond to Reuters.

Impact of Suspension

  • PERM Suspension: Covers new filings; existing applications and visa statuses are not affected.
  • H-1B Fee: The wider squeeze is the proposed $103,265 fee for each new capped H-1B.

Historical Context

  • This is not the first suspension. The department’s inspector general opened a nationwide H-1B and PERM fraud investigation in July.
  • Capgemini, with a strong presence in North America, has its own green card pipeline now suspended.

Related Investigations

  • Nine universities, including Harvard, Yale, and Stanford, are also under investigation for allegedly bringing in international students to undercut American wages.

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