Sunita Somvanshi
The Labor Department moved to halt green card filings for two tech firms. Whether the action protects domestic workers or positions the administration for a news cycle is a question with economic consequences that run past November.
The US Department of Labor first suspended Cloudera’s permanent labor certification filings in May 2026, when the Office of Foreign Labor Certification suspended processing of Cloudera’s PERM applications for 180 days in connection with a Department of Justice investigation. On September 18, 2026, the DOL Inspector General released a statement reporting that the department had suspended visa-related filings from both Cognizant and Cloudera pending investigation, in coordination with the White House Task Force to Eliminate Fraud. The Department has not disclosed the specific allegations. PERM is the first step in many employer-sponsored green card cases. Adobe’s 215 pending PERM applications appeared with an “application on hold” status change in the unofficial PERM Tracker on September 24, 2026; the Department has not published a formal announcement for Adobe, and the tracker does not report a reason for the status change.
Employees at those firms who have I-140 petitions already approved are in a different category from those still at the PERM stage. The freeze affects labor certification, not approved petitions—but consult an immigration attorney before making any employment decision based on that distinction, because the specifics of each case determine the impact.
Who the Freeze Actually Protects—and Who It Doesn’t
The framing favored by the administration is that suspending foreign labor certifications opens roles for domestic workers. The Department of Labor’s PERM process already requires employers to run documented domestic recruiting efforts before a foreign worker can be certified. Companies must advertise the role, review applicants, and demonstrate that no qualified US worker was available and rejected. Suspending the final certification step does not add new positions; it removes the endpoint of a process that companies undertook to reach this stage.
One analytical argument holds that the economic effect may run in the opposite direction. Multinational firms that cannot complete the certification pathway for specialized technical talent may, over time, move those positions to locations with functioning skilled-worker visa systems. That outcome would not be automatic or immediate, and would depend on individual company decisions; it is an economic risk to monitor, not a confirmed outcome.
The 180-day suspension Cloudera received in May 2026 preceded the September action. That sequence suggests a sustained enforcement posture, not a one-time intervention. Whether the investigation produces findings that justify the scope of the suspension, or whether the timing reflects election-calendar pressures, will be clearer once the Inspector General releases the underlying complaint.
Why would a company be alleged to have committed PERM fraud?
PERM fraud allegations most often involve filing labor certifications for positions that were never genuinely open to domestic applicants—creating vacancies on paper to fulfill the regulatory requirement while routing the position to a predetermined foreign hire. Allegations may also involve backdating or falsifying recruiting records.
What happens to a worker’s green card case if their employer’s PERM is suspended?
If your PERM application is pending and your employer’s filings are suspended, the case is paused. If your I-140 is already approved, the suspension typically does not revoke that approval—but consult an immigration attorney because case specifics vary.
Can workers switch employers if their green card case is frozen?
Under the AC21 portability provision, a worker whose I-140 petition has been approved and whose Form I-485 adjustment-of-status application has been pending for at least 180 days may be eligible to port to a new employer in a same-or-similar job. Whether a specific case qualifies depends on the details; an immigration attorney can advise.
Check your PERM case status through the DOL case management system and consult an immigration attorney before taking any action. Do not rely on employer communications alone when a suspension is in effect.
Related Karmactive coverage: tech workforce changes US employment trends.
