PERM Suspension: Impact on Pending PERM and I-140 Cases for H-1B Workers

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PERM Suspension: Impact on Pending PERM and I-140 Cases for H-1B Workers

Introduction

The U.S. employment-based immigration system has faced a significant development following the suspension of certain companies from participating in the Permanent Labor Certification (PERM) program in October 2026.

The development has raised questions among foreign professionals working in the United States, particularly those whose employers are sponsoring them for permanent residency.

Employees want to understand what happens when a PERM application is pending, whether an approved Form I-140 remains valid, whether an H-1B extension is still possible, and whether changing employers is a practical option.

The answers depend on the employee's immigration history, the stage of the Green Card process, the employer involved, and the precise scope of the applicable government action.

The most important distinction is that PERM, Form I-140, and H-1B status are separate parts of the immigration system. A restriction affecting one stage does not automatically produce the same result at every other stage.

This guide explains these differences and identifies the questions affected employees should discuss with their employer's immigration team or a qualified U.S. immigration attorney.

What Is the PERM Labor Certification Program?

The Permanent Labor Certification program, commonly known as PERM, is administered by the U.S. Department of Labor (DOL).

For many employer-sponsored employment-based Green Card cases, PERM is the initial stage of the process. It requires an employer to complete the applicable recruitment and labor certification requirements before proceeding with the immigrant petition.

The employer generally must establish that there are not sufficient U.S. workers who are able, willing, qualified, and available for the relevant job opportunity and that employing the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers.

The process generally involves the following stages:

1.      The employer determines the requirements and duties of the permanent job opportunity.

2.      The employer obtains a prevailing wage determination when required.

3.      The employer completes the applicable recruitment and notice requirements.

4.      The employer files the PERM labor certification application.

5.      The Department of Labor reviews the application and issues a decision.

If the labor certification is approved, the employer may generally proceed to the next stage by filing Form I-140 with U.S. Citizenship and Immigration Services (USCIS), subject to the applicable requirements.

PERM approval does not itself grant a Green Card, permanent resident status, or permission to work in the United States.

What Does the October 2026 PERM Suspension Mean?

In October 2026, the U.S. government announced restrictions affecting certain major technology companies and their participation in the PERM program.

Public reporting identified companies including Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, and Capgemini.

The development concerns the employer's ability to use the affected PERM process. It should not be confused with a general suspension of the H-1B visa program.

India's Ministry of External Affairs also clarified on October 9, 2026, that the PERM suspension does not, by itself, affect the validity of existing H-1B visas or the immigration status of their holders and dependents. However, the ministry noted that eligible employees of affected companies could experience an impact on their permanent residency or Green Card process.

For employees, the practical question is not simply whether their company appears in a news report. They need to determine whether the relevant employer, application, and stage of processing are covered by the applicable restrictions.

Employees should seek confirmation from their employer's immigration team rather than assuming that every case involving a named company will receive identical treatment.

What Happens If a PERM Application Is Pending?

A pending PERM application is a labor certification case that has been filed but has not yet received a final decision.

For employees whose cases are connected to an affected employer, the suspension may create uncertainty about whether the pending application can continue through the normal process.

The possible consequences depend on the scope of the restriction and the status of the individual application.

Possible consequences for pending cases

Processing delays or suspension: A case covered by the restrictions may not proceed as expected while the applicable suspension remains in effect.

Uncertainty about the next stage: If the employer cannot obtain the required labor certification, it may be unable to move forward with the usual PERM-based Green Card process for that position.

Changes to immigration planning: Employees approaching an H-1B expiration date may need to review their available extension options separately from the PERM issue.

Employer-specific implications: Employees at the same company may have different circumstances depending on whether their cases are at the recruitment, PERM, I-140, or adjustment-of-status stage.

A pending PERM application should not be treated as an approved labor certification. Equally, an employee should not assume that the case has been permanently denied simply because a suspension has been announced.

The employer or its immigration counsel should confirm the actual status and explain whether any action is required.

Does PERM Suspension Automatically Cancel an Approved I-140?

No. A PERM suspension should not automatically be interpreted as cancellation of every previously approved Form I-140 petition.

Form I-140, Immigrant Petition for Alien Workers, is generally filed by an employer after the required labor certification has been obtained, where PERM is required.

An approved I-140 is a separate immigration milestone from PERM certification. Its continuing effect depends on the petition's circumstances and the applicable immigration rules.

Employees should distinguish between these situations:

·        PERM pending: The labor certification has not yet been approved.

·        PERM approved, I-140 not filed: The employer may need to determine whether it can proceed with the immigrant petition.

·        I-140 pending: USCIS has not yet issued a final decision on the immigrant petition.

·        I-140 approved: The petition has been approved, but the employee may still need to satisfy additional requirements before becoming a permanent resident.

·        Form I-485 pending: The employee has applied to adjust status, if eligible, and the effect of any development must be assessed according to the individual's case.

These stages are not interchangeable. A restriction on an employer's participation in PERM does not, on its own, establish the outcome of every I-140 or I-485 case associated with that employer.

Employees with approved petitions should obtain case-specific legal advice before making decisions about changing employers, travel, extensions, or other immigration matters.

Can H-1B Workers Continue Working During the PERM Suspension?

A PERM suspension does not, by itself, terminate an employee's existing H-1B status.

H-1B status is governed by separate requirements, including the validity of the approved petition, the authorized period of stay, continued qualifying employment, and compliance with applicable immigration rules.

Employees should continue to monitor their H-1B expiration dates and consult their employer regarding any required extension or amended petition.

The following points are important:

·        A PERM application is not an H-1B visa or H-1B petition.

·        A pending Green Card case does not replace the need to maintain valid nonimmigrant status when required.

·        A PERM suspension does not automatically mean that an employee must stop working.

·        An H-1B extension must be assessed under the rules applicable to that extension.

·        Employees should not resign or change employers solely on the assumption that their existing immigration status has become invalid.

The availability of an H-1B extension beyond the ordinary six-year limit can depend on specific statutory provisions and the employee's PERM or I-140 history. An immigration attorney should assess whether those provisions apply to the individual case.

What Should Employees Do If Their Green Card Case Is Affected?

Employees should first establish the exact stage of their case instead of relying only on general news reports.

A practical checklist includes:

1.      Ask the employer whether the relevant PERM application is covered by the suspension.

2.      Confirm whether the case is pending, approved, withdrawn, or otherwise affected.

3.      If an I-140 has been filed, confirm its current status and retain the approval notice if it has been approved.

4.      Check the expiration date of the current H-1B approval and any related immigration documents.

5.      Ask the employer's immigration counsel whether an H-1B extension or another lawful immigration option may be available.

6.      Obtain individualized legal advice before making a major employment or immigration decision.

Employees should keep copies of relevant notices and correspondence. They should also distinguish confirmed government actions from speculation about what may happen next.

Official Sources to Monitor

Because immigration restrictions can change, employees should rely on official government information when assessing their individual cases.

·        U.S. Department of Labor — PERM Program:
https://flag.dol.gov/programs/perm

·        U.S. Department of Labor — PERM Processing Times:
https://flag.dol.gov/processingtimes

·        U.S. Citizenship and Immigration Services:
https://www.uscis.gov/

·        India's Ministry of External Affairs:
https://www.mea.gov.in/

The Department of Labor's PERM information explains the labor certification process. USCIS provides information about immigrant petitions and H-1B status. The relevant agency's official notices and the facts of an individual case should guide decisions.

This article provides general information, not individualized legal advice. Immigration outcomes depend on the applicable rules and the facts of each case.

What Happens to the Green Card Priority Date After an I-140 Approval?

An employee's priority date is an important factor in the employment-based Green Card process. It generally determines the employee's place in the immigrant visa queue, subject to the applicable category, country of chargeability, and visa availability rules.

For many PERM-based employment cases, the priority date is associated with the date the Department of Labor accepts the labor certification application for processing.

If an employer's PERM participation is suspended, employees with previously approved I-140 petitions should not automatically assume that their priority dates have been lost.

However, priority-date retention and the continuing validity of an immigrant petition are separate questions.

Under applicable USCIS rules, an employee may generally retain the priority date established by an approved I-140 for a subsequently filed employment-based petition, subject to exceptions. These exceptions can include circumstances involving fraud, material error, or revocation of the petition under specified provisions.

Employees should ask their immigration attorney to confirm:

·        The priority date recorded in the approved I-140.

·        Whether the petition remains approved.

·        Whether the priority date can be retained for a future petition.

·        Whether the employee's current immigration strategy depends on the same employer.

·        Whether any specific restriction affects the employee's case.

Important: Retaining a priority date does not automatically provide a Green Card, guarantee visa availability, or authorize employment in the United States.

Can an Employee Change Employers During a PERM Suspension?

Changing employers may be an option for some workers, but the consequences depend on the stage of the immigration process.

An employee should not assume that moving to another company will automatically solve a PERM-related problem.

Situation 1: PERM Has Not Been Filed

If the employer has not filed the PERM application, the employee generally cannot rely on an approved labor certification from that employer.

A new employer may need to begin its own employment-based sponsorship process, including the applicable recruitment and labor certification steps.

Situation 2: PERM Is Pending

A pending PERM application is generally associated with the sponsoring employer and the specific job opportunity.

If the employee changes employers, the pending application generally cannot simply be transferred to the new employer. The new employer may need to start a separate process.

Before resigning, the employee should discuss the consequences with qualified immigration counsel.

Situation 3: PERM Is Approved but Form I-140 Has Not Been Filed

An approved labor certification does not automatically transfer to another employer.

The original employer generally must take the required steps to proceed with the associated immigrant petition. If the employee changes employers, a new employer may need to undertake its own sponsorship process.

The employee should obtain legal advice before making a decision that could affect the existing case.

Situation 4: Form I-140 Is Approved

An approved I-140 may provide additional options, depending on the employee's circumstances.

For example, an employee may be able to retain the priority date for a subsequent qualifying petition. However, a new employer will generally need to satisfy the requirements applicable to its own sponsorship.

The employee should also consider whether changing jobs could affect eligibility for H-1B extensions or other immigration benefits.

Situation 5: Form I-485 Has Been Pending for at Least 180 Days

Certain employment-based applicants may be eligible to change employers or jobs under the portability provisions of the American Competitiveness in the Twenty-First Century Act (AC21).

Eligibility generally requires, among other things, that the Form I-485 application has been pending for at least 180 days and that the new job is in the same or a similar occupational classification as the job described in the underlying employment petition.

Other requirements and exceptions may apply.

Employees should have an immigration attorney review their case before relying on portability.

Can an H-1B Extension Still Be Possible if PERM Is Suspended?

A PERM suspension does not automatically prevent every H-1B extension.

H-1B extensions are governed by separate immigration rules. Depending on the circumstances, certain workers may qualify for extensions beyond the normal six-year limit based on a pending or approved employment-based immigration process.

Two important provisions are commonly relevant.

Extensions Based on a Pending Labor Certification or I-140

Under applicable provisions of the American Competitiveness in the Twenty-First Century Act, certain H-1B workers may qualify for extensions beyond six years when the required labor certification or employment-based immigrant petition has been pending for the prescribed period.

Eligibility depends on the statutory requirements and the facts of the case.

A PERM suspension may complicate the process if an employee has not yet reached the stage required to qualify for a particular extension.

Extensions Based on an Approved I-140

Some H-1B workers may qualify for extensions beyond six years based on an approved I-140 when an immigrant visa is not available because of applicable numerical limitations.

The availability of this option depends on the relevant law, the employee's petition history, and other eligibility requirements.

Employees should not assume that an approved I-140 guarantees every future H-1B extension. Their immigration attorney should review the applicable requirements and filing deadlines.

What If an Employee's H-1B Expiration Date Is Approaching?

Employees whose H-1B status is approaching expiration should address that issue separately from the PERM suspension.

They should not wait until their PERM situation is resolved before reviewing their H-1B options.

Consider the following steps:

1.      Check the expiration date on the current Form I-797 approval notice and review the applicable authorized period of stay.

2.      Ask the employer's immigration team when an extension petition should be prepared and filed.

3.      Confirm whether the employee may qualify for an extension beyond six years.

4.      Review whether an approved I-140 or another qualifying immigration milestone is relevant.

5.      Obtain individualized legal advice if the employer's ability to proceed with sponsorship is uncertain.

The availability of an extension, the timing of a filing, and the employee's ability to continue working while a petition is pending depend on the applicable rules and individual circumstances.

Employees should not rely solely on the expiration date printed on a visa stamp to determine the expiration of their authorized stay. Visa validity and authorized stay are different concepts.

Does PERM Suspension Affect H-4 Dependents?

H-4 status is generally linked to the qualifying H-1B principal's circumstances.

A PERM suspension does not automatically cancel an H-4 dependent's status. However, changes in the principal worker's H-1B status, employment, or authorized stay may have consequences for dependent family members.

H-4 dependents should review their own immigration documents and expiration dates.

Families should pay particular attention to:

·        The principal H-1B worker's current status and extension plans.

·        The H-4 dependent's authorized period of stay.

·        Any pending extension or change-of-status applications.

·        Whether an H-4 employment authorization document is relevant to the family's circumstances.

H-4 employment authorization is subject to separate eligibility requirements. An employee's PERM or I-140 situation should not be treated as automatic confirmation that an H-4 spouse is eligible to work.

Families should obtain case-specific advice before making decisions about employment, travel, or changes in immigration status.

Common Mistakes H-1B Workers Should Avoid

During periods of immigration uncertainty, employees may make decisions based on incomplete information.

The following mistakes should be avoided.

Mistake 1: Assuming every H-1B visa is affected.

A restriction involving PERM does not automatically mean that all H-1B visas or petitions are suspended.

Mistake 2: Assuming an approved I-140 has automatically become invalid.

The effect on an approved petition must be determined under the applicable rules and the facts of the case.

Mistake 3: Resigning without reviewing the immigration consequences.

A pending PERM application is generally employer-specific. Changing jobs can affect the existing sponsorship process.

Mistake 4: Ignoring H-1B expiration dates.

Employees should continue to monitor their immigration deadlines, even when their Green Card process is uncertain.

Mistake 5: Assuming priority-date retention guarantees a Green Card.

Priority-date retention and eligibility for permanent residence are separate matters.

Mistake 6: Relying on social media posts without checking official notices.

Employees should confirm whether a restriction applies to their particular employer and case rather than relying solely on general announcements.

Questions Employees Should Ask Their Immigration Attorney

Employees affected by a PERM suspension can prepare for a consultation by asking:

1.      Is my employer specifically covered by the applicable restriction?

2.      Is my PERM application pending, approved, or otherwise affected?

3.      If my I-140 has been approved, does it remain approved?

4.      Can I retain my existing priority date if I change employers?

5.      Am I eligible for an H-1B extension beyond six years?

6.      Could changing employers affect my existing Green Card process?

7.      If my I-485 is pending, do I qualify for employment-based portability?

8.      Are there filing deadlines or other actions I need to address immediately?

Having copies of relevant immigration notices, approval documents, and employer communications can help the attorney assess the situation.

 Final Takeaway

A PERM suspension can create uncertainty for employees whose employers are sponsoring them for employment-based permanent residence. However, its effect is not identical for every worker.

The consequences depend on the stage of the Green Card process, the employer involved, the scope of the applicable restrictions, and the employee's separate H-1B eligibility.

Workers should distinguish between a pending PERM application, an approved labor certification, an approved I-140 petition, and a pending adjustment-of-status application. Each stage has different legal implications.

The most practical approach is to confirm the status of the individual case, review H-1B expiration dates, and seek qualified immigration advice before making major employment or travel decisions.

Frequently Asked Questions About PERM Suspension

1. Does PERM suspension automatically cancel an H-1B visa?

No. A PERM suspension does not, by itself, automatically cancel an existing H-1B visa or terminate H-1B status. Employees must continue to meet the separate requirements governing their H-1B status and employment.

2. What happens if my PERM application is pending?

The impact depends on the employer involved, the scope of the applicable restriction, and the status of the application. Ask your employer's immigration team to confirm whether your specific case is affected.

3. Can I continue working while my PERM application is suspended?

A PERM suspension does not automatically prohibit an H-1B worker from continuing authorized employment. However, the employee must maintain the required immigration status and comply with applicable employment authorization rules.

4. Will an approved I-140 automatically become invalid?

No. A PERM suspension alone does not establish that every previously approved I-140 has become invalid. The status and continuing effect of an individual petition must be assessed under the applicable immigration rules and case circumstances.

5. Can I change employers if my PERM application is pending?

A pending PERM application generally cannot simply be transferred to a new employer. The new employer may need to begin a separate sponsorship process. Obtain legal advice before making employment decisions.

6. Can I retain my priority date if I change employers?

Priority-date retention may be available under applicable rules, particularly where an employment-based I-140 has been approved. However, exceptions can apply, and retaining a priority date does not guarantee a Green Card.

7. Can I extend my H-1B beyond six years?

Certain workers may qualify for extensions beyond the normal six-year limit under specific provisions of U.S. immigration law. Eligibility depends on factors such as the employee's PERM and I-140 history and the applicable statutory requirements.

8. Does a PERM suspension automatically affect H-4 dependents?

No. A PERM suspension does not automatically cancel H-4 status. However, changes in the principal H-1B worker's status or authorized stay may affect dependents, so families should review their individual circumstances.

9. Should I withdraw my Green Card application?

Do not withdraw an application solely because of general news about a PERM suspension. First, confirm the status of your case and consult a qualified U.S. immigration attorney about the possible consequences.

10. Where can I check the latest PERM information?

Use the U.S. Department of Labor's official PERM website and processing-times page. For H-1B and I-140 matters, consult USCIS's official website and applicable policy guidance.

Practical Action Plan for Affected H-1B Workers

If your employer's PERM process may be affected, take the following steps.

Step 1: Confirm the employer-specific restriction.

Ask your employer whether the relevant company, legal entity, and PERM application are covered by the applicable government action.

Step 2: Identify your current Green Card stage.

Determine whether your case is at the recruitment stage, PERM filing stage, approved labor certification stage, I-140 stage, or adjustment-of-status stage.

Step 3: Review your H-1B documents.

Check your current approval notice, authorized period of stay, and any upcoming extension deadlines.

Step 4: Ask about your available options.

Discuss potential H-1B extensions, priority-date retention, employer changes, and any applicable adjustment-of-status portability provisions with immigration counsel.

Step 5: Keep records.

Retain copies of approval notices, receipts, relevant employer communications, and correspondence from your immigration attorney.

Step 6: Verify updates through official sources.

Government restrictions and immigration procedures may change. Avoid making major decisions based solely on social media posts or general news reports.

Related H-1B and H-4 Guides

The following guides provide additional information about H-1B employment, extensions, Green Card planning, and H-4 dependents.

·        H-1B Visa: Complete Work Visa Guide — Understand the basic H-1B process and requirements.

·        H-1B Visa Transfer Process — Review key considerations when changing employers.

·        H-1B Visa Extension Process — Learn about extension procedures and planning.

·        H-1B to Green Card Process — Understand the general employment-based permanent residency process.

·        H-1B Visa Rejection Reasons — Review common issues that may affect an H-1B petition or visa application.

·        H-4 Visa for Spouses and Children of H-1B Holders — Learn about dependent visa considerations.

·        H-4 Visa Travel and Re-Entry Rules — Review important considerations for dependent family members travelling internationally.

Official Government Resources

For authoritative information, consult the following resources:

·        U.S. Department of Labor — PERM Program: https://flag.dol.gov/programs/perm

·        U.S. Department of Labor — PERM Processing Times: https://flag.dol.gov/processingtimes

·        U.S. Citizenship and Immigration Services: https://www.uscis.gov/

·        USCIS Policy Manual: https://www.uscis.gov/policy-manual

·        U.S. Department of State — Visa Information: https://travel.state.gov/

Always check the latest official guidance before making an immigration decision.

Conclusion

A PERM suspension can create uncertainty for employees pursuing employment-based permanent residency, but its consequences depend on the employee's specific immigration stage and the restrictions applicable to the employer.

A pending PERM application, an approved I-140 petition, H-1B status, and a pending adjustment-of-status application are different matters. Employees should understand which part of their case may be affected before deciding whether to change employers, pursue an extension, or alter their Green Card strategy.

The most practical approach is to verify the status of the individual case, maintain awareness of immigration deadlines, and obtain qualified legal advice where necessary.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Immigration outcomes depend on the applicable laws, government actions, and individual circumstances. 

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