The Trump administration has expanded immigration enforcement targeting employment-based visa programs. At an October 8, 2026, press conference, DOL Secretary Keith Sonderling announced PERM processing suspensions and/or fines for ten companies: Microsoft, Adobe, Cloudera, Instacart, Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini. The administration also announced investigations into nine universities for alleged J-1 visa misuse and established a multi-agency Visa Fraud Strike Team, signaling increased scrutiny of employment-based immigration programs.

PERM Suspensions Affect Eight Major Employers: The PERM labor certification process is generally the first step toward employment-based permanent residence in the EB-2 and EB-3 categories. Employers must recruit to determine whether qualified U.S. workers are available for the position. Administration officials alleged that certain companies misused immigration programs to favor foreign workers over U.S. workers. The suspensions affect major employers of foreign professionals, although the restrictions’ precise scope, including whether they cover new filings and pending applications, remains unclear.

What Legal Authority Allows DOL to Suspend PERM Applications? Under 20 C.F.R. § 656.31(b), DOL may suspend PERM processing when possible fraud or willful misrepresentation involving the PERM program is identified or investigated. Suspensions may initially last up to 180 days but can be extended until investigations or judicial proceedings conclude. A suspension does not establish wrongdoing or automatically result in application denials.

Distinguishing H-1B Allegations from PERM Violations: The administration emphasized alleged H-1B abuses when announcing the PERM suspensions, although the programs have distinct legal requirements. H-1B regulations govern temporary specialty occupation employment, while PERM rules address recruitment for permanent positions. Alleged H-1B violations alone therefore may not justify PERM suspensions. Whether DOL has identified sufficient PERM-related misconduct remains unclear.

Impact on Pending PERM Applications and Green Card Sponsorship: Reports indicate that some pending PERM applications have moved to “Hold” status in DOL’s FLAG system. Processing delays could affect Form I-140 petitions, green card timelines, and certain H-1B extensions beyond six years. However, a PERM suspension does not automatically revoke existing H-1B status, invalidate approved immigrant petitions, or terminate employment authorization. The impact depends on each employee’s immigration circumstances and filing deadlines.

Earlier Cloudera Action Results in Two-Year PERM Debarment: DOL’s May 2026 suspension of Cloudera’s PERM applications followed allegations that the company used a recruitment email address that could not receive messages from external applicants, preventing U.S. workers from applying for PERM positions. Cloudera also allegedly excluded these positions from its public careers website. On October 16, 2026, DOJ and DOL announced a settlement requiring a two-year PERM debarment, a $1.4 million back-pay fund, and $600,000 in civil penalties.

Instacart Reaches $5 Million Settlement Over PERM Recruitment Practices: On October 20, 2026, DOJ and the EEOC announced a $5 million settlement with Instacart over allegations that it required U.S. workers to mail paper applications for PERM positions while allowing electronic applications for other jobs. This additional requirement allegedly discouraged applicants and delayed their consideration. Instacart agreed to establish a fund of up to $4 million for affected workers, pay $1 million in civil penalties, and revise its recruitment procedures to allow electronic applications for PERM positions.

Nine Universities Face J-1 Visa Investigations: The administration also announced investigations into Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, Arizona State, and MIT. The inquiries concern alleged misuse of J-1 visas for postdoctoral researchers and federally funded research positions, including compensation practices and opportunities for U.S. researchers. DOL’s Office of Inspector General confirmed it served subpoenas on October 9. These allegations remain under investigation, and employing J-1 researchers is not inherently improper.

Multi-Agency Visa Fraud Strike Team Expands Enforcement Focus: The administration established a Visa Fraud Strike Team involving DOL, the Department of Justice, the Department of Homeland Security, and other federal authorities. The initiative targets suspected H-1B and J-1 program violations and follows enforcement actions announced in July 2026. Employers and universities may face increased scrutiny of recruitment, wages, immigration filings, and supporting records, which could lead to administrative, civil, or criminal proceedings.

Looking Ahead: The October 2026 announcements signal increased federal oversight of employment-based immigration. While agencies may investigate suspected violations, PERM suspensions must comply with applicable regulatory requirements. Employers and employees should distinguish allegations from established findings and monitor further agency guidance. Our firm will continue tracking developments affecting PERM, H-1B, J-1, and employment-based permanent residence.