What You Missed In Immigration: Microsoft & Adobe Suspended From PERM, OPT Could Cost $100K & USCIS Wants to Talk to Your Neighbors
Microsoft, Adobe Among Eight Employers Suspended From the Green Card Program
The Department of Labor has suspended Microsoft, Adobe, and six IT staffing firms from the PERM labor certification program. New applications from these companies are blocked, and pending cases are reportedly on hold. DOL cited federal investigations and concerns about companies hiring foreign workers while conducting layoffs of U.S. employees. No end date for the suspensions has been announced. The action does not affect other employers, and sponsored employees at the suspended companies retain their existing work authorization.
The PERM Takeaway: This is the most significant enforcement action against the PERM program in years, and it landed on two of the biggest names in tech. The message from DOL is direct: if your company is sponsoring foreign workers through PERM while simultaneously laying off U.S. workers in comparable roles, your labor certification program is at risk. This tracks with the executive order signed last month requiring agencies to factor layoff history into H-1B reviews. The enforcement posture is consistent, and it is escalating. For employers outside the suspended group, the lesson is immediate. Audit your own PERM pipeline against any workforce reductions from the past 12 months. If there is overlap between laid-off positions and roles you are certifying through PERM, document the distinctions in duties, qualifications, and geography now. DOL has shown it will act without warning and without a defined timeline for reinstatement. Employers who assume this enforcement wave stops at eight companies are making a bet they may not want to be on the wrong side of.
DHS Proposes $70,000 Fee for Student Work Program
DHS has proposed charging schools $70,000 for a student's first Optional Practical Training recommendation after the rule takes effect, with $30,000 for each subsequent recommendation. OPT allows eligible F-1 students to work in their field of study after graduation, and a STEM extension adds additional time. Under this proposal, a student pursuing both OPT and a STEM extension could trigger $100,000 in combined fees. Schools would be allowed to pass those costs to students or employers. The proposal does not change current work authorization rules, and public comments are open until November 9.
The PERM Takeaway: OPT is the on-ramp to employer-sponsored immigration for a huge share of the foreign-born workforce. A $70,000 fee on the first recommendation would reshape the pipeline that feeds PERM cases. If schools pass the cost to students, fewer international graduates will pursue OPT, and the pool of candidates available to employers shrinks. If employers absorb the cost, the total price of developing a foreign worker from campus hire to green card holder jumps dramatically. Either way, the economics of the student-to-sponsored-worker pipeline change in a fundamental way. This is a proposed rule, not a final one, and the comment period runs through November 9. Employers who recruit heavily from university programs should be paying close attention to this proposal and making their position known during the comment window. If the rule takes effect as written, companies that built their talent strategy around campus recruiting and OPT will need to recalculate the cost of that pipeline from the ground up.
USCIS Updates Guidance on Citizenship Neighborhood Checks
USCIS has issued updated guidance on neighborhood investigations for naturalization applicants. The checks, which the agency resumed in 2025, may include interviews with an applicant's neighbors, coworkers, or employers. Not every applicant will be subject to one. Applicants can voluntarily submit character reference letters, preferably from U.S. citizens who are not relatives, to help USCIS determine whether to waive an investigation. Submitting letters does not guarantee a waiver. The guidance applies to naturalization applications that were pending or filed on or after August 25, 2026.
The PERM Takeaway: Neighborhood checks sit at the end of the immigration journey rather than the beginning, but the reintroduction of this practice signals a broader shift toward more hands-on scrutiny at every stage. For PERM employers, the practical concern is what happens when a USCIS investigator shows up at your office to ask about a sponsored employee who is applying for citizenship. HR teams and supervisors need to know this is a possibility and understand that cooperation with the investigation is expected. Employers should also be aware that character reference letters from coworkers or supervisors could help their employee's case. If a sponsored worker who has reached the naturalization stage asks for a reference letter, that is a reasonable request, and providing one is straightforward. The broader takeaway is that USCIS is investing in verification at a level the agency had moved away from for years. Employers should expect that level of scrutiny to show up across other parts of the immigration process as well.
Lawsuit Challenges USCIS Green Card Policies on Adjustment of Status
A coalition of immigrants, unions, and advocacy groups has sued USCIS over two policies affecting green card applicants who file from within the United States. The first policy treats an applicant's choice to adjust status domestically, rather than processing through a consulate abroad, as a negative factor in the case. The second gives officers expanded discretion to deny applications without first issuing a request for evidence. The plaintiffs argue the policies risk separating families and disrupting employment, and have asked a federal court to block both. Both policies remain in effect while the case moves forward.
The PERM Takeaway: Adjustment of status is the preferred filing path for most PERM-sponsored employees because it allows the worker to stay in the U.S. while the green card case is processed. A USCIS policy that treats choosing adjustment of status as a negative factor works directly against that preference and introduces a new variable into case strategy. If officers are weighing the domestic filing choice against applicants, counsel needs to build the case file with that in mind and ensure supporting documentation is strong enough to overcome that additional scrutiny. The second policy, allowing denials without first requesting evidence, removes a safety net that gave applicants a chance to correct deficiencies before a case was rejected. For employers, that means the initial filing has to be airtight. There is less room for a second chance if something is missing or unclear. Both policies remain in effect, and the lawsuit could take months to resolve. Plan filings as though these standards will be applied to your cases, because right now they are.
Stay sharp, stay compliant, and we'll see you next week.
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