In an extraordinary move with immediate implications for the tech sector’s talent pipeline, the U.S. Department of Labor (DOL) on Thursday suspended Microsoft, Adobe and six IT-services companies from filing new PERM labor-certification applications, effectively freezing a key pathway from temporary work visas to green cards for thousands of employees. Vice President J.D. Vance said the companies “routinely undercut American wages” while relying on foreign talent. The PERM process is the foundational first step for most H-1B, L-1 and O-1 visa holders who hope to become permanent residents. By pausing new filings and processing, DOL is sending shock waves across corporate mobility teams that already struggle with retrogressed visa-bulletin dates. Immigration counsel estimate that roughly 4,000 Microsoft PERM cases were in the pipeline; all are now on hold pending the outcome of a fraud investigation. Adding to the drama, the administration later honored Microsoft CEO Satya Nadella—an immigrant himself—with the National Medal of Technology and Innovation at a White House ceremony the same day. The split-screen optics highlight the tension between the United States’ desire to attract world-class talent and the administration’s populist messaging on foreign labor. From a mobility perspective, employers face tough choices: redeploy affected staff abroad, extend temporary visas (risking higher fees and caps), or accelerate green-card processing in alternative categories such as EB-1 C for multinational managers. Some immigration lawyers advised clients to initiate PERM cases with affiliate entities not named in the suspension, though DOL hinted additional companies could be added. The tech industry is lobbying for a swift resolution, warning that project timelines and R&D roadmaps are at risk. Until then, relocation planners should audit their PERM inventories, communicate contingencies to impacted assignees, and budget for premium H-1B extensions where eligible.
Source: Axios
