Last updated: October 16, 2026
On October 8, 2026, the White House announced that the Department of Labor (DOL) will stop accepting and processing PERM applications from eight employers, including Microsoft, Adobe and Infosys. PERM is the labor certification that usually starts an employer-sponsored green card. The H-1B visa itself was not suspended, and no end date has been given.
For founders, the news says less about Microsoft than about one question: who controls your immigration status.
What the government decided, and what it didn’t
The suspension was announced at a White House press conference led by Vice President JD Vance, with Labor Secretary Keith Sonderling. The eight employers are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. The administration cited ongoing fraud investigations. The suspension covers new and pending PERM applications from these companies.
Three weeks earlier, on September 18, President Trump signed an executive order on the H-1B program. It tells federal agencies to consider whether an employer laid off American workers in similar roles during the previous year, or plans to, when reviewing H-1B filings. It applies to any H-1B employer, not only these eight.
What hasn’t changed: people already on an H-1B keep their status and permission to work. An approved immigrant petition (Form I-140) generally keeps its priority date. USCIS can revoke an approval for fraud or willful misrepresentation, but that is a separate process and wasn’t part of this announcement. Neither measure mentions the O-1 visa.
What hasn’t been put in writing
As of October 16, 2026, the Department of Labor had not published a written notice, a list of covered applications or the legal basis for the suspension. What we know comes from the October 8 press conference.
Attorneys point to a Labor Department rule on fraud investigations. Under it, a first suspension can last up to 180 days and be extended. Officials haven’t confirmed that’s the rule they used.
There is a precedent. In May 2026, the Department of Labor suspended PERM processing for Cloudera for 180 days, after the Department of Justice accused the software company of running a recruitment process that kept qualified US workers out. That case involved one company far smaller than Microsoft.
Who is affected
- Professionals at the eight companies with a green card in progress, especially those close to the six-year H-1B limit with no PERM filed yet.
- Big tech professionals planning to leave and start a company.
- Founders hiring from these companies, since a candidate’s pending PERM stays with the old employer.
- Startups that cut staff in the past year and hire on H-1B, under the September executive order.
Not directly affected: people already on an O-1, people with an EB-1A or EB-2 NIW petition, and employers not on the list, for now.
If you leave, what happens at each green card stage
For someone at one of these companies thinking about starting a business, the first question is what stays behind. A PERM belongs to the employer, not to the worker. What you keep depends on how far your case went.
| Where your case is | What happens if you leave |
|---|---|
| No PERM filed yet | No place in the green card line yet. These employers can’t file a new PERM for now, and your six-year H-1B clock keeps running. |
| PERM pending | The application stays with the employer and doesn’t move with you. |
| PERM certified, no I-140 yet | The certification generally has to be used by the employer within 180 days to file the I-140. It stays with the employer. |
| I-140 approved | You generally keep the priority date. If the approval is 180 days old or more, it generally survives even if the employer withdraws it. That date can carry over to a later EB-1A or NIW petition. |
| Green card application (Form I-485) pending 180 days or more | You may be able to move to a same or similar job without starting over. Talk to an attorney before changing roles. |
Why the O-1 doesn’t depend on your employer’s PERM
The O-1 is a temporary work visa for people with extraordinary ability. It is filed with U.S. Citizenship and Immigration Services (USCIS) and has no Department of Labor step: no PERM, no lottery, no annual cap and no per-country limit.
The petition can come from the founder’s own company, as long as it is a separate legal entity, such as a corporation or LLC. USCIS confirmed this in January 2025. An agent can also file when the person works for more than one company. Either way, the status doesn’t hang on one large employer’s standing with the government. More on who can sponsor an O-1.
The first O-1 approval can last up to three years. Extensions come in increments of up to one year, with no limit on how many. The petition also needs an advisory opinion from a peer group or labor organization in your field.
The O-1 has limits. The standard is high: USCIS looks for sustained national or international recognition in your field. It is not a green card. For permanent residence, founders usually look at the EB-1A or the EB-2 National Interest Waiver (NIW), which the applicant can file without an employer. And a spouse in O-3 status cannot work in the US.
What USCIS looks for in an O-1A
For the O-1A, which covers business, science, technology and athletics, USCIS looks for a major internationally recognized award, or evidence in at least three of eight criteria:
- Nationally or internationally recognized prizes or awards for excellence
- Membership in associations that require outstanding achievement
- Published material about you in professional or major media
- Judging the work of others in your field
- Original contributions of major significance
- Authorship of scholarly articles
- Employment in a critical or essential role for distinguished organizations
- A high salary compared with others in the field
Meeting three criteria isn’t the end of the review. USCIS then looks at the whole record to decide whether it shows sustained acclaim. For founders, one detail comes up often: press about the company is not the same as press about the founder. The articles need to be about you and your work.
For a senior engineer leaving big tech, some of this evidence may already exist: patents, open-source work others build on, conference talks, a critical role at a well-known company, a salary above the market. Whether it adds up is decided case by case.
Leaving Big Tech mid-PERM: how the O-1 can work
Picture a senior engineer at Microsoft whose PERM, started in 2025, is now frozen. She wants to leave and build her own company. If she leaves, the pending PERM stays with Microsoft. Once her startup exists as a separate company, it can file an O-1 petition for her.
Timing is the risk. If she resigns before the petition is filed, she may have up to 60 days, or until her authorized stay ends if sooner, to change status, at USCIS’s discretion. The Department of Homeland Security has proposed eliminating that grace period. It’s a proposal, with comments open until November 10, 2026, and the current rule still applies.
A green card petition, such as the EB-1A or NIW, can run in parallel. Whether her record meets the O-1 standard depends on her evidence, and that is assessed case by case.
What to do now
- Check two dates: when your six years on H-1B end, and what stage your green card is at.
- Confirm whether you have an approved I-140. It generally holds your place in the green card line even if you change employers.
- Put immigration in the company plan. If you’re preparing to found a startup, the timing of your status matters as much as the timing of your launch.
- Follow official updates. Details haven’t been published yet and may change.
- Talk to an immigration attorney before acting on a headline.
Frequently asked questions
What is the PERM suspension?
On October 8, 2026, the White House announced that the Department of Labor will stop accepting new PERM applications, and stop processing pending ones, from eight employers: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. PERM is the labor certification that usually starts an employer-sponsored green card.
Is the H-1B suspended at Microsoft?
No. The suspension covers PERM, not the H-1B. People already working on an H-1B keep their status, and the end date on their approval doesn’t change.
What happens to my pending PERM?
It stays pending. The Department of Labor has stopped working on applications from these eight employers, but they haven’t been denied. If you leave the company, the application stays with that employer.
How long will the suspension last?
No end date has been announced. Attorneys point to a Labor Department rule on fraud investigations that allows a first suspension of up to 180 days, which can be extended. Officials haven’t confirmed that’s the rule they used.
Does the suspension affect my H-4 spouse?
It can. An H-4 spouse can usually get a work permit only if the H-1B worker has an approved I-140, or has had the H-1B extended past six years based on a green card case. A PERM frozen before the I-140 stage can delay that. Moving from H-1B to O-1 also ends H-4 status, and a spouse in O-3 status can’t work.
Does the PERM suspension affect the O-1 visa?
The announcement did not mention the O-1. The O-1 is filed with USCIS and doesn’t go through the Department of Labor, so there is no PERM step. Approval still depends on meeting the O-1 standard for extraordinary ability.
Can a founder’s own company sponsor an O-1?
Yes, if the company is a separate legal entity, such as a corporation or LLC. USCIS may ask for proof that the company is a real employer. The O-1 does not allow a person to petition for themselves.
When should a founder file an O-1 if they plan to leave their job?
Timing usually works best while the H-1B is still valid. If the petition is filed while you’re in status, your company can ask USCIS to change your status without you leaving the US. After you resign, you may have up to 60 days, at USCIS’s discretion, and the Department of Homeland Security has proposed eliminating that window.
How is the O-1 different from the H-1B for founders?
The H-1B goes through a lottery, an annual cap and a labor condition application with the Department of Labor, and it has extra rules when the founder owns the company. The O-1 has no lottery, no cap and no Department of Labor step. The trade-off is the standard: the O-1 requires evidence of extraordinary ability in your field.
If you’re building a company in the US
The PERM suspension showed how quickly an employer-dependent process can stop. For founders with a strong record, the O-1 can offer a work status that runs through their own company instead. Jumpstart’s methodology is trained directly on USCIS adjudicator decisions. To see whether your record supports an O-1, book a consultation.
*This article is general information, not legal advice. Jumpstart is not a law firm; legal services are provided by independent licensed attorneys. Immigration rules change often; check the date and the official source linked above
