• The Department of Labor has suspended Microsoft (MSFT) and Adobe (ADBE) from the PERM labor certification program, according to a breaking announcement.
  • The move threatens to stall green card processing for affected employees and signals heightened scrutiny of employer-sponsored immigration.
  • Neither company has issued a public response, and official confirmation of the suspension's scope remains pending.

Labor Department Cracks Down on Tech Giants

The Department of Labor has suspended some of the world’s largest IT sourcing firms—including Microsoft and Adobe—from the PERM labor certification program, according to a breaking announcement. The suspension, which affects the primary pathway for employer-sponsored green cards, marks a significant escalation in U.S. immigration enforcement under the Trump administration.

While the broader PERM enforcement campaign has been corroborated—with extensive holds on Adobe filings and a September 8 inspector general announcement of suspensions involving two technology companies—official confirmation that Microsoft and Adobe are specifically targeted was not immediately available. A third-party tracker drawing on DOL records shows 216 Adobe cases on hold out of 225 pending as of October 7, up from 215 of 215 on September 25. For Microsoft, no independent confirmation of its inclusion could be obtained. The company’s appearance in PERM filing statistics establishes program participation, not suspension.

PERM is the labor-certification process employers must navigate to sponsor workers for permanent residence. It requires rigorous recruitment to test whether qualified U.S. workers are available. A suspension can freeze that stage while an investigation proceeds, though it is not a criminal conviction, a permanent ban, or an automatic cancellation of existing work visas. PERM is separate from the H-1B program.

Legal and Financial Implications

Under 20 CFR § 656.31, the DOL may suspend PERM processing when possible fraud or willful misrepresentation is under investigation. An initial suspension can last up to 180 days, with extensions permitted if proceedings continue. The regulation does not guarantee resolution within that window.

The suspension carries direct consequences for talent recruitment and retention. Microsoft and Adobe are both expanding aggressively in artificial intelligence. Microsoft’s Azure cloud-services revenue grew 43% in its latest quarter, while Adobe reported AI-first annualized recurring revenue growth exceeding 150%. Immigration uncertainty could complicate hiring at a critical juncture, though neither company’s earnings releases quantify a financial impact from the holds.

Financial performance remains robust. Microsoft reported quarterly revenue of $90.0 billion, up 18%, with operating income of $40.6 billion. Adobe posted revenue of $6.76 billion, up 13%, with annualized recurring revenue reaching $27.50 billion. Both companies have announced restructuring measures: Microsoft disclosed severance and Xbox impairment charges, while Adobe recently named Anil Chakravarthy as its next CEO, effective December 1, 2026.

Background and Broader Enforcement

The suspensions stem from a widening crackdown on employment-based immigration. In September 2025, the DOL launched Project Firewall, allowing H-1B investigations based on reasonable cause without a worker complaint. In July 2026, the DOL’s Office of Inspector General announced a major investigation into alleged fraudulent applications, worker exploitation, and wage abuses. The September enforcement actions involve coordination between Acting Labor Secretary Keith Sonderling, the White House fraud task force, and the Department of Justice, according to legal analyses.

Mayer Brown’s September 17 analysis described suspensions involving a major IT outsourcing firm and a data-software company without naming Microsoft or Adobe. Earlier reporting identified Cognizant (CTSH), a traditional IT-services provider, as another suspended employer. The inspector general has warned that “handcuffs await,” signaling aggressive enforcement intent.

A Microsoft spokesperson did not respond to a request for comment by press time. Adobe declined to comment. The Department of Labor also did not respond to inquiries regarding the specific scope of the suspensions.

Correction: An earlier version of this article incorrectly stated that Microsoft had confirmed its suspension. The company has not issued a public statement, and the suspension remains unverified for Microsoft. Additionally, the headline’s characterization of Microsoft and Adobe as “IT sourcing firms” is imprecise; Microsoft focuses on software, cloud, and AI, while Adobe specializes in creativity and document-management software.