Short answer: On 8 October 2026, the US Department of Labor suspended eight companies (Microsoft, Adobe, Infosys, TCS, Wipro, HCL Technologies, Cognizant and Capgemini) from the PERM labour certification program, so it will not accept new PERM filings from them or process pending ones. This PERM freeze delays the employer-sponsored green card for H-1B workers at those companies, but it does not cancel anyone's existing H-1B status or affect green cards that have already been issued. The workers most exposed are those who have not started PERM yet and those approaching the six-year H-1B limit without an earlier green card filing.
This guide explains what was suspended, who is affected and who is not, what is not changing, and why a growing number of H-1B and green card holders are looking at the UAE as a parallel option. The situation is still developing: the administration describes the move as a fight against visa fraud, Microsoft has disputed the administration's account, and the details may change. Information here is current as of 26 October 2026 and is general information, not US immigration advice. Speak to a US immigration attorney about your own case.
What Happened on 8 October 2026
At an event in Washington, Vice President JD Vance and Labor Secretary Keith Sonderling announced that eight employers had been suspended from the Department of Labor's Permanent Labor Certification program, known as PERM. The companies named were Microsoft, Adobe, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, Cognizant and Capgemini.
Under the suspension, the Department of Labor will not accept new PERM applications filed by these companies, and it will not process applications that are already pending. The administration has framed the action as part of a crackdown on visa fraud and an effort to protect American workers, and officials have said investigations are continuing. Microsoft has disputed the administration's account. As of this writing, reporting describes the suspension as indefinite, without a published end date.
The announcement lands on top of two earlier changes that had already unsettled skilled foreign workers in the US: the $100,000 fee on new H-1B petitions introduced in September 2025, and the end of automatic extensions for many Employment Authorization Document (EAD) renewals in October 2025.
What PERM Is and Why It Matters for H-1B Workers
PERM is the first step of the most common employer-sponsored green card route. The employer has to test the US labour market, show that no qualified, willing US worker is available for the role, and get the Department of Labor to certify the position. Only after PERM is certified can the employer file the I-140 immigrant petition, and the PERM filing date usually becomes the worker's priority date, their place in the green card queue.
For H-1B workers, PERM matters for two reasons:
- The queue: without an active PERM filing, a worker cannot establish a priority date. For Indian nationals in particular, where employment-based green card backlogs already run for many years, every month without a priority date pushes the green card further away.
- The six-year limit: H-1B status is generally capped at six years. Extensions beyond six years usually depend on a PERM or I-140 having been filed early enough, or an I-140 having been approved. A worker near year six with no PERM on file has far less room to stay.
Who Is Affected by the PERM Freeze, Stage by Stage
The impact depends on where a worker is in the green card process. The table below is a general guide based on how the suspension has been described publicly. Individual cases vary, so confirm your position with an immigration attorney.
| Your stage at a suspended company | Likely impact |
|---|---|
| Green card not started yet | Most exposed. The company cannot file a new PERM, so you cannot establish a priority date through this employer. |
| PERM filed and pending | Processing is frozen. Your case is stuck until the suspension is lifted or changed. |
| Approaching the six-year H-1B limit with no PERM or I-140 filed | Highly exposed. Without an early filing, extensions beyond six years may not be available. |
| PERM already certified, I-140 filed or approved | Not directly frozen by the PERM suspension, but officials have not fully addressed later stages. Get case-specific advice. |
| Green card already issued | Not affected. Already-issued green cards are not cancelled. |
| H-1B status, no green card plans | Your existing H-1B status is not cancelled by this action. |
Workers at companies that are not on the list are not directly affected. However, many are watching closely because officials have said investigations are continuing, and the action signals a tougher approach to employment-based immigration generally.
What Is Not Changing
There has been a lot of alarmist commentary since the announcement, so it is worth being precise. Based on the announcement and reporting to date:
- This is not an H-1B ban. Existing H-1B status at the eight companies has not been cancelled.
- Issued green cards are safe. People who already hold green cards are not affected by the PERM suspension.
- Other employers can still file PERM. The suspension applies to the eight named companies, not to the PERM program as a whole.
- It may change. The suspension is tied to investigations, the companies involved may challenge it, and the terms may be clarified or revised.
In short, this is a freeze on the green card pipeline at specific companies. It is serious for the people caught in it, but it is not a removal of anyone's current legal status.
What H-1B Professionals Are Considering Now
For workers at the suspended companies, and for others who see the trend, the realistic options fall into a few groups:
- Wait it out: stay in H-1B status and hope the suspension is lifted. This suits people early in their H-1B term with time to spare.
- Change employer: move to a company that is not suspended and start PERM there. This restarts the process, and a new employer may be cautious about sponsoring.
- Look at other US categories: some highly accomplished professionals may qualify for routes that do not need PERM, such as EB-1 or the National Interest Waiver (EB-2 NIW). These have demanding evidence requirements.
- Build a parallel base abroad: set up residency and a business or employment option in another country, so that an adverse US outcome does not leave a career and family with nowhere to go. This is where the UAE comes in.
These options are not mutually exclusive. Many professionals are pursuing a US option and a non-US option at the same time, keeping the UAE as a Plan B that can become Plan A if needed.
Why H-1B Holders Are Looking at the UAE
Business setup advisers in Dubai and Abu Dhabi report a rise in enquiries from US-based professionals since the H-1B fee change in 2025, and again since the PERM announcement, especially from Indian nationals on H-1B visas and some green card holders. The reasons are practical:
- No sponsor dependency: through the Golden Visa, the Green Visa or your own company, you can hold UAE residency without being tied to a single employer.
- No personal income tax: the UAE does not tax individuals on employment or freelance income. Companies pay corporate tax at 9% above AED 375,000 of taxable profit, with a 0% rate available on qualifying income in free zones. See our UAE corporate tax guide.
- Fast, predictable setup: a free zone company can often be licensed within days to a few weeks, and residence visas follow. See how long company setup takes in Dubai.
- Time zone and travel: Dubai sits between India, Europe and the US, with direct flights to major US and Indian cities.
- Family: residence visa holders can generally sponsor a spouse and children if they meet the income and housing rules. See our guide to sponsoring your family in the UAE.
How the UAE Options Compare with the US Green Card Route
The UAE is not a substitute for US citizenship, and there is no direct UAE equivalent of a green card that leads to naturalisation for most people. What it offers is long-term, renewable residency that does not depend on a labour certification or an annual lottery. The main options are:
| Option | Who it suits | Duration | Key points |
|---|---|---|---|
| Golden Visa | Investors, entrepreneurs and skilled professionals who meet the criteria | Long-term (5 or 10 years, depending on category), renewable | No employer sponsor needed. Family sponsorship included. Common routes include property worth at least AED 2 million, or a skilled-professional salary threshold. |
| Green Visa (freelancer or self-employed) | Independent consultants and freelancers | 5 years, renewable | Self-sponsored. Requires a freelance permit and proof of qualifications and income. |
| Remote work visa | Employees of non-UAE companies who want to try living in Dubai | 1 year, renewable | Lets you keep working for a foreign employer. Requires proof of employment and minimum income. |
| Own company (free zone or mainland) | Founders, consultants and agencies | Residence visa usually 2 years, renewable | You sponsor yourself through your company and can hire staff. See our guide to residency through your own company. |
| Employment visa | People taking a job with a UAE employer | Usually 2 years, renewable | Tied to the employer, but transferable when you change jobs. |
Golden Visa criteria and income thresholds are set by the UAE authorities and are updated from time to time. Check the current rules on the official UAE government portal before you apply, and see our UAE Golden Visa guide.
Things H-1B and Green Card Holders Should Check First
- Do not abandon a US option by accident. Long periods outside the US can affect pending US applications, and green card holders who stay abroad for extended periods risk being treated as having abandoned their permanent residence. A US re-entry permit can help in some cases. Take US immigration advice before you move.
- US tax does not stop at the border. US citizens and green card holders are taxed by the US on their worldwide income even when living in the UAE. Exclusions and credits may reduce the bill. Take cross-border tax advice.
- Plan the order of steps. Many people set up a UAE company or residency while still working in the US, then decide later whether and when to move. See our guide to setting up a business in Dubai without living there.
- Check your employment contract. If you plan to consult or freelance alongside a US job, check non-compete and moonlighting clauses first.
The Bottom Line
The PERM suspension is a real setback for workers at the eight companies, particularly those who have not started the green card process or are close to the six-year H-1B limit. It is not an H-1B ban, and already-issued green cards are not affected. The sensible response for most people is not panic but a plan: understand where you stand in the US process, take US immigration advice, and, if it makes sense for your career and family, build a second base that does not depend on a US labour certification.
If you want to understand what a UAE base would cost and which route fits your profile, our team can walk you through company setup, Golden Visa and Green Visa options. Book a free consultation, or read our practical guide, Plan B for H-1B professionals: setting up in Dubai.
Frequently Asked Questions
On 8 October 2026, the US Department of Labor suspended Microsoft, Adobe, Infosys, TCS, Wipro, HCL Technologies, Cognizant and Capgemini from the PERM labour certification program. It will not accept new PERM applications from these companies or process pending ones.
No. Existing H-1B status at the suspended companies is not cancelled. The suspension affects the employer-sponsored green card pipeline, not current H-1B status.
No. Green cards that have already been issued are not affected by the PERM suspension.
Workers at the eight companies who have not started PERM yet, and those approaching the six-year H-1B limit without an earlier PERM or I-140 filing, are the most exposed.
Yes. Common routes are a UAE employment visa, a Green Visa for freelancers and self-employed professionals, a residence visa through your own free zone or mainland company, a remote work visa, or a Golden Visa if you meet the investor, entrepreneur or skilled-professional criteria.
Not necessarily. Many people set up a UAE company or residency while still in the US. But long absences can affect pending US applications and green card status, so take US immigration advice before moving.
The UAE has no personal income tax on employment or freelance income. Companies pay corporate tax at 9% above AED 375,000 of taxable profit. US citizens and green card holders remain subject to US tax on worldwide income.
Possibly. The suspension is tied to ongoing investigations, the companies may challenge it, and the terms may be revised. Follow official Department of Labor updates and your employer's guidance.