The PERM suspension 2026 began on 8 October, when the US Department of Labor (DOL) suspended eight employers from the PERM program, the first step in most employer-sponsored green cards. It will not accept new PERM filings from these firms, and it has stopped work on the ones already filed. H-1B status is not suspended.
For US companies that depend on visa-based IT talent, the PERM suspension is a signal to check how exposed their delivery teams are. This guide explains what changed, who it affects, and how to keep projects moving without adding visa risk.
Key takeaways
- The DOL suspended eight named employers from PERM on 8 October 2026. It is not a nationwide halt.
- H-1B visas are not cancelled, and approved I-140 petitions are not revoked by this action.
- No end date has been set. Attorneys point to a rule that allows an initial 180-day suspension that can be extended.
- Your company can still be exposed through its IT vendors. A team employed and paid in India needs no US visa at all.
What Is the PERM Suspension?
The PERM suspension is a DOL action that stops eight employers from filing new labor certification applications and freezes the ones already filed. PERM is the process an employer uses to show that no qualified US worker is available for a role. Only then can it sponsor a foreign worker for an EB-2 or EB-3 green card.
How PERM fits into the green card program
An employer-sponsored green card usually moves through five steps. The DOL sets the prevailing wage. The employer advertises the job and recruits. The employer files PERM. After PERM approval, it files Form I-140 with USCIS. The worker then applies for the green card itself. The suspension stops the process at step three.
Which employers were named
| Employer | Type |
|---|---|
| Microsoft | Technology |
| Adobe | Technology |
| Cognizant | IT services |
| Infosys | IT services |
| Tata Consultancy Services (TCS) | IT services |
| Wipro | IT services |
| HCLTech | IT services |
| Capgemini | IT services |
Vice President JD Vance and Labor Secretary Keith Sonderling announced the action and cited alleged fraud and misuse of foreign-worker programs. These are allegations, not findings. Cognizant's PERM filings had already been paused in September 2026. TCS said its PERM filings were in single digits over the last two years and that it does not expect an impact on client work.
What the suspension does not change
- H-1B status stays valid for workers at these companies.
- Previously approved PERM certifications and I-140 petitions are not automatically revoked.
- Every other employer can keep filing PERM under the existing rules.
- The separate $100,000 fee on new H-1B petitions is not being collected. Courts have blocked it, but appeals are still pending.
How Long Will the Green Card Freeze Last?
No end date has been set, and the DOL had not published a written notice as of 14 October 2026. Immigration attorneys point to 20 CFR 656.31(b) as the likely basis. That rule allows an initial suspension of up to 180 days, which can be extended while an investigation or court case is open. So treat 180 days as a review point, not an end date.
The same rule allows a tougher penalty called debarment, which can bar an employer for up to three years. No debarment has been announced.
Why the PERM Suspension Matters Even If You Never Sponsor a Visa
Many US companies never file PERM themselves, but their IT vendors do. If a vendor's onsite engineers rely on PERM to stay past the six-year H-1B limit, a long freeze can pull people off your project.
The six-year H-1B clock
An H-1B worker can usually stay up to six years. To stay longer, the worker needs a green card case started in time, such as a PERM on file or an approved I-140. When an employer cannot file PERM, some workers near year six may have to leave the US. If one of them leads your release, the gap lands on your roadmap.
Scrutiny is spreading to staffing arrangements
The action did not appear overnight. A DOL investigation into H-1B and PERM abuse opened in July 2026, and the list grew from one company to eight in about a month. Immigration firm Newland Chase expects closer review of third-party staffing and IT services arrangements in 2027. An analyst at Anand Rathi sees little direct impact on Indian IT, but expects the move to speed up a shift to offshore delivery that was already under way.
What it means for your company
Startups
Startups often depend on two or three key engineers. Losing one can stall a release, and few startups have the budget for immigration counsel or a backup hire.
SMBs
SMBs often run on a single IT vendor. They rarely have the leverage to demand visa data or a written continuity plan, so the risk stays hidden until someone leaves.
Enterprises and GCCs
Enterprises buy from large vendors with deep onsite benches. Procurement and vendor-risk teams now need visa exposure data in every review, the same way they ask for security and compliance data.
When Should You Review Your Team's Visa Dependency?
Review it now if any of these apply to you:
- A key IT vendor is among the eight named employers.
- Engineers on your account are in year five or six of their H-1B.
- Your roadmap depends on roles that must sit in the US.
- Your company or vendor had US layoffs in the last 24 months.
- You have no written backup plan if a named engineer leaves.
- You plan to bring overseas hires into the US in the next 12 months.
You can fold this check into your next IT audit by adding vendor and workforce risk to its scope.
H-1B Alternatives for Employers: 4 Ways to Keep Projects Moving
There are four main ways to keep work moving when visa routes tighten. You can hire US-authorized talent, use other visa types, hire through an employer of record in India, or use offshore staff augmentation. Each one trades cost, speed and control in a different way.
Hire US-authorized talent
This removes visa risk but costs the most. A senior developer search in the US can take three to six months, and your release waits while you hire.
Use other visa routes (L-1, O-1)
The L-1 visa needs a foreign affiliate where the person has worked for at least a year. The O-1 needs proof of extraordinary ability, which most mid-level engineers cannot show. Both still mean legal fees, filings and review.
Hire through an employer of record in India
An employer of record (EOR) becomes the legal employer of your India hires and runs payroll and compliance. You still find, vet and manage every person, and you start over if someone leaves.
Use offshore staff augmentation in India
A staff augmentation partner finds, vets, employs and pays the engineers in India and handles compliance and replacements. You interview the people, pick who joins and direct their daily work.
the four options compared
| Option | US visa needed | Who finds and vets talent | Who employs and pays | Who replaces a leaver | Who directs the work |
|---|---|---|---|---|---|
| Hire US-authorized talent | No | You | You | You | You |
| Other visas (L-1, O-1) | Yes | You | You | You | You |
| Employer of record in India | No | You | EOR provider | You | You |
| Offshore staff augmentation | No | Provider | Provider | Provider | You |
Need a team that does not depend on a visa? Tell us the roles you need and see vetted profiles before you commit. Get a free consultation
How 4Labs Offshore Staff Augmentation Removes Visa Risk
4Labs builds your team in India. We hire, pay and keep the team compliant under Indian law. You interview, choose and direct the people. Nobody on the team needs a US visa or a green card to do the work.
We hire, pay and stay compliant in India
We handle sourcing, payroll, statutory compliance and onboarding. Your managers deal with the work, not the paperwork. The model is described in full on our offshore staff augmentation services page.
You keep control of the work and the IP
Your team sets priorities, runs sprints and reviews code. The engineers join your tools and channels from day one. Every engagement runs under a contract with NDA clauses, and the work delivered belongs to your company.
Replacements without starting over
If a role changes or a person is not the right fit, we line up a replacement from our vetted pool.
Working hours that overlap with US teams
India Standard Time does not change for daylight saving, but US time zones do. The table shows the overlap with a 9 AM to 5 PM US workday for an example India shift of 2 PM to 11 PM IST.
| US time zone | Daylight time (Mar to early Nov) | Standard time (early Nov to Mar) |
|---|---|---|
| Eastern | 4.5 hours | 3.5 hours |
| Central | 3.5 hours | 2.5 hours |
| Pacific | 1.5 hours | 0.5 hours |
West Coast teams usually agree a later India shift or a short daily handover call.
From requirement to first stand-up
- Share your needs. Roles, tech stack, seniority, scope and timeline.
- Review profiles. Vetted CVs usually arrive within a couple of hours.
- Interview and choose. Nobody joins your team without your sign-off.
- Onboard. Engineers join your tools, workflows and stand-ups.
- Get ongoing support. We track delivery and keep backup resources ready.
Since 2019, 4Labs has delivered 220+ projects with a 98% client retention rate. Our headquarters is at Technopark in Thiruvananthapuram, Kerala, with six more offices, and we serve clients in the USA, UK, Canada, the GCC, Singapore and Australia. See how we built an offshore development team for a telecom client, or compare our engagement models.
7 Questions to Ask Your IT Vendor This Week
- How many people on our account hold an H-1B or another US work visa?
- How many of them have a PERM or I-140 pending?
- Who is in year five or six of their H-1B?
- Which roles must be onsite, and why?
- What is your written plan if someone has to leave the US?
- How fast can you replace a person, and who pays for the overlap?
- Which parts of our work could move to an offshore team that needs no visa?
Frequently Asked Questions
Does the PERM suspension affect H-1B visas?
No. The suspension covers PERM labor certification, not H-1B status. Workers at the named companies can keep working on a valid H-1B. Those near the six-year limit may be affected if their green card case cannot move forward.
How long will the green card programme suspension last?
No end date has been set. Attorneys expect the DOL is using a rule that allows an initial suspension of up to 180 days, which can be extended while an investigation or court case remains open.
Does the PERM suspension apply to my company?
Only if your company is one of the eight named employers. Other employers can file PERM under the existing rules. You may still be exposed if your IT vendor is on the list.
What is the best H-1B alternative for employers?
It depends on the role. For most software, QA, data and DevOps roles, an offshore team in India removes visa risk and costs less than a US hire. For roles that must sit in the US, hire US-authorized talent.
What is the difference between staff augmentation and an employer of record?
An employer of record only becomes the legal employer of people you find and vet yourself. A staff augmentation partner also sources, vets and replaces the people. In both models, you direct the daily work.
How fast can an offshore team in India start?
With 4Labs, vetted profiles usually arrive within a couple of hours of your brief. The start date then depends on your interview schedule and the seniority of the role.
Build the Team Where the Talent Is
The PERM suspension 2026 touches only eight employers today, but it shows where US hiring rules are heading. A team that is employed and paid in India does not depend on a visa, a lottery or a green card. 4Labs can help you build that team without giving up control of the work.
Ready to plan a visa-free team? Book a free consultation with a 4Labs advisor.
