Labor Watchdog Warns More H-1B and PERM Suspensions Are Coming for Colleges and Firms

The Trump administration is preparing more H-1B PERM suspensions, the Labor Department's inspector general warned on Friday, November 14, 2026, as investigators widen a crackdown on alleged immigration fraud. Anthony D'Esposito said in a video message that more colleges and companies would be cut off from the H-1B visa and PERM labour certification programmes, and that his office would keep investigating "as aggressive as we possibly can".

D'Esposito named no institutions, gave no timetable, but the warning landed as the fraud inquiry, launched in July, reaches deeper into the systems employers use to hire foreign workers. His office is working with the White House Fraud Task Force led by Vice President JD Vance, a sign of a coordinated campaign rather than one-off enforcement actions.

Key Points

• The Labor Department's inspector general warned Friday that more colleges and companies face suspension from the H-1B and PERM programmes.
• Anthony D'Esposito said investigators will keep working "as aggressive as we possibly can", but he named no targets and gave no timeline.
• The warning follows a July nationwide investigation into alleged fraud and human trafficking in the H-1B and PERM systems.
• In October, Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini were suspended from PERM.
• The inspector general's office is working with Vice President JD Vance's White House Fraud Task Force.

What Happened

In a video message released on Friday, D'Esposito said his office would keep pursuing suspected fraud in the two programmes and that further suspensions were coming. "Some more colleges, some more companies" would be suspended, he said, without saying which ones or when. The department would investigate "as aggressive as we possibly can".

The two programmes sit at the centre of how US employers hire foreign workers. The H-1B visa lets companies bring in skilled workers for specialist roles, while PERM is the labour certification employers must obtain before sponsoring a foreign worker for a green card. Losing access to either can freeze a company's foreign hiring pipeline overnight and stall green card cases already in progress.

Background and Context

The warning follows a nationwide inquiry opened in July into alleged fraud and human trafficking in H-1B and PERM. Investigators are examining claims that employers and labour brokers filed fraudulent applications, exploited foreign workers through wage-kickback schemes and used below-wage labour to undercut US workers.

The crackdown fits a wider campaign to tighten high-skilled immigration. The administration has proposed a $100,000 fee on most new H-1B petitions and lottery changes favouring higher payers. In October it suspended Microsoft, Adobe and several of the world's largest IT outsourcing firms from PERM, a move that sent a shock through the technology industry. This week IBM said it was ending visa and green card sponsorship for most consulting roles. Read our report on IBM ending H-1B and green card sponsorship for most consulting roles.

H-1B PERM Suspensions: The Companies Already Cut Off

The October suspensions showed how far the administration is willing to go. Microsoft and Adobe, two of the biggest names in American technology, were barred from PERM, along with Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini — outsourcing giants that file thousands of visa and green card applications each year. The department has not said what conduct led to each suspension, and none of the companies has been accused of a crime.

D'Esposito has made little secret of his view of Microsoft. During the Microsoft 365 outage on November 12, he mocked the company on X: "Microsoft can process 6,000 H-1B applications, but processing your inbox is apparently a tougher assignment." The post underlined how public and personal the campaign has become.

The October action also showed the limits of a suspension. It stops new PERM filings; it does not cancel visas already granted or green cards already issued. But for firms that sponsor large numbers of workers each year, even a temporary freeze can disrupt hiring plans and leave employees in limbo.

Reactions and Quotes

D'Esposito's own words were the centrepiece of Friday's warning. "We will continue to investigate as aggressive as we possibly can," he said, adding that his office would hold accountable anyone found to have abused the programmes. The message was aimed as much at employers watching from the sidelines as at investigators carrying out the work.

The involvement of the White House Fraud Task Force, led by Vice President Vance, signals that the inquiry has backing at the highest levels of the administration. The task force coordinates fraud investigations across agencies, and its role here suggests the inquiry is being treated as a priority rather than a routine audit.

Neither the Labor Department nor the White House has said how many institutions are under investigation, and none has been named as a future target. With no list published, every employer using the programmes has reason to review its own filings.

Why It Matters

For colleges, the stakes are direct. Universities use H-1B visas to hire foreign researchers, lecturers and specialists, and PERM certifications to sponsor them for residence. A suspension would leave departments unable to fill posts and researchers unable to secure long-term status. For technology firms, the programmes are the main route to hiring skilled workers from abroad, and a freeze can stall projects.

For foreign workers, the warning adds uncertainty to an already anxious time. Workers on H-1B visas depend on their employer to maintain their status, and a PERM suspension can delay a green card application years in the making. The administration says the crackdown protects workers from exploitation; critics say broad suspensions punish workers for their employers' conduct.

What Happens Next

The investigation continues, and D'Esposito's warning suggests further suspensions will be announced, not telegraphed. No timeline has been given, and the department has not said whether the next targets will be universities, technology firms or labour brokers. Employers that rely on the programmes are likely to audit their applications now.

The political context matters too. President Donald Trump has offered Democrats talks on immigration and tax after the midterm elections, and the enforcement drive is running alongside that outreach. For the full picture, read our report on Trump offering Democrats immigration and tax talks after the midterm losses. Friday's warning makes clear the enforcement side is accelerating, not slowing down.

Frequently Asked Questions

What did the Labor Department warn on Friday? Inspector General Anthony D'Esposito warned more colleges and companies will be suspended from the H-1B and PERM programmes as fraud investigations continue.

Which colleges and companies will be suspended? None were named and no timeline was given. D'Esposito said only that "some more colleges, some more companies" would be suspended.

What is PERM? PERM is the labour certification employers must obtain before sponsoring a foreign worker for a green card; a suspension stops new PERM filings by that employer.

Who has already been suspended? In October, Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini were suspended from PERM.

What is the White House Fraud Task Force? It is a task force led by Vice President JD Vance coordinating fraud investigations across agencies. The Labor Department's inspector general said it is working with the task force on this inquiry.