PERM labor certification is a major step in many employer-sponsored U.S. green card cases. In October 2026, federal action restricting participation by several large technology and outsourcing employers raised urgent questions for H-1B workers. A company-level suspension can disrupt new or pending sponsorship steps, but it does not automatically cancel a worker’s H-1B status or mean every employee’s green card case has been denied.
What Is PERM Labor Certification?
PERM is the Department of Labor process through which an employer generally demonstrates that there are not sufficient able, willing, qualified and available U.S. workers for a permanent position and that hiring a foreign worker will not adversely affect similarly employed U.S. workers. It is often the first major stage for EB-2 and EB-3 employer-sponsored permanent residence.
The employer, rather than the foreign worker, files the PERM application. A certification is not a green card. After certification, an employer ordinarily proceeds with an immigrant petition through USCIS.
How Does the PERM Process Work in 2026?
The employer identifies a genuine permanent, full-time role and its minimum qualifications, obtains a prevailing wage determination, conducts required recruitment and notice steps, and submits the labor certification application. The Department of Labor may approve, audit or deny the application. Recruitment records and accurate job requirements are important because PERM protects U.S. labor market opportunities.
As of the September 30, 2026 processing update, the Labor Department reported an average of 336 calendar days for PERM analyst review determinations completed in August. That is a retrospective average, not a guaranteed decision time for a newly filed case.
Which Tech Companies Faced PERM Suspensions?
In October 2026, reports identified government suspensions involving major technology and IT services companies, including Microsoft, Adobe and several outsourcing firms. The administration alleged program misuse; affected companies disputed or responded to those concerns. The precise scope and duration of restrictions can differ by employer and may change with agency action or legal developments.
Workers should not assume every employer in the technology sector is suspended. Nor should they infer that an allegation has been established merely because a company was named in a public announcement.
What Happens to H-1B Workers When PERM Is Suspended?
A suspension may prevent an employer from initiating or advancing covered PERM filings. It can also complicate timelines for workers approaching their H-1B maximum stay. However, PERM sponsorship and H-1B nonimmigrant status are separate legal processes. A PERM suspension does not, by itself, revoke an otherwise valid H-1B approval.
Workers should request written clarification from their employer’s immigration team: Has recruitment started? Was PERM filed? Is there a certified PERM? Has Form I-140 been filed or approved? The answers determine which deadlines and alternatives may be relevant.
Can Workers Switch Employers or Preserve Progress?
Changing employers may be possible, but PERM is generally tied to the sponsoring employer and its offered job. A new employer commonly needs its own labor certification process. In some cases, an approved I-140 can preserve an earlier priority date, subject to applicable rules and exceptions. It does not automatically transfer the prior employer’s PERM certification to a new job.
Workers close to their H-1B six-year limit should obtain individualized legal advice promptly. Certain pending labor certification or immigrant petition cases and certain approved I-140 situations may support extensions beyond six years, but eligibility depends on timing and other requirements.
Frequently Asked Questions
No. It is usually an earlier employer-sponsored labor certification step.
Not automatically. H-1B status and PERM sponsorship are distinct.
The standard PERM process is employer-filed. Some immigrant categories do not require PERM.
Times vary. The Labor Department reported 336 days as its August 2026 analyst-review average, not a promise for individual cases.
PERM disruptions can make an already complex green card journey less predictable. ImmigCanada helps skilled professionals explore Canadian permanent residence options based on their qualifications, language scores and experience, providing a separate planning route where appropriate. U.S. PERM questions should also be reviewed with qualified U.S. immigration counsel.