Microsoft’s PERM Cases Have Been Put on Hold. Does That Mean H-1B Is Over Too?
Let’s say there is a Korean engineer named Alex working at Microsoft in the United States on an H-1B. He has been there for a few years. The salary is good, he likes the company, and his family has finally settled into life in the U.S. But an H-1B is temporary work status, not permanent residence, and it generally comes with a six-year limit. So Alex asks the company to sponsor his green card.
The company says yes.
“We want you to stay with us too. Let’s start the green card process.”
Great. So now he just waits and eventually gets his green card, right?
Sorry, but no.
On October 8, the U.S. government announced that it would suspend PERM labor certification processing involving eight companies: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. According to the announcement, the government will stop accepting new PERM applications connected to these companies and will not process applications that are already pending. The administration cited an ongoing investigation and the protection of American workers.
That said, an allegation is not the same thing as a final finding that these companies broke the law. The companies are pushing back as well.
So, what exactly is PERM? And if PERM has been suspended, does that mean Alex’s H-1B has also been cancelled?
PERM Is Not a Work Visa
When a U.S. company agrees to sponsor a foreign employee for an employment-based green card, it cannot usually jump straight to the I-140 petition and hand the employee a green card.
In most cases, the company must first go through the U.S. Department of Labor. It has to confirm the wage for the position, carry out the required recruitment process in the United States, and show that there are not enough qualified U.S. workers available for the job. It must also show that permanently employing the foreign worker will not negatively affect the wages and working conditions of American workers.
That labor certification process is PERM, short for Permanent Labor Certification.
And one important point: the company files the PERM application, not the foreign employee. If you know Canadian immigration, LMIA probably popped into your head immediately. You’re half right. Both systems involve a review intended to protect the domestic labour market. But a Canadian LMIA is mainly connected to hiring a foreign worker and obtaining a work permit, while PERM is a labor certification process used when a U.S. employer wants to sponsor a foreign employee for permanent residence.
Of course, an LMIA can also be connected to the Job Offer requirements of certain Canadian permanent residence programs. So PERM and LMIA are not interchangeable either. You cannot simply replace one name with the other and assume the systems work the same way.
Once PERM is approved, the company can use that approval to file Form I-140, the Immigrant Petition for Alien Worker, with U.S. Citizenship and Immigration Services. Put simply, the company is saying, “Please assess our employee, Alex, for employment-based immigration.” But even an approved I-140 does not mean a green card arrives the next day.
The number of employment-based immigrant visas available each year is limited. There are also per-country limits, so when demand is high, applicants must wait for their Priority Date to become current. This is one reason applicants born in India can face extremely long waits. In 2026, the U.S. government even announced that all available EB-2 immigrant visa numbers for India had been used for that fiscal year.
Here is the easiest way to picture it.
PERM is the first check you need before making a reservation at a restaurant. The I-140 is another check confirming that you are actually an eligible customer. But even after the restaurant confirms your eligibility, that does not mean a table is available. If the restaurant is full, you wait. U.S. employment-based immigration works in a similar way.
So What Exactly Has Been Stopped?
From Alex’s point of view, this is ridiculous.
“I’m legally working in the United States, and my company already agreed to sponsor my green card. Now you’re telling me the government will not even accept the application?”
Yes. That can happen.
Someone who has not yet filed PERM, or whose PERM application is already pending, could be directly affected by this announcement. But that does not mean every H-1B held by a foreign employee at one of these companies has automatically been cancelled. The announcement did not shut down the entire H-1B program. It suspended PERM processing involving specific companies. You should not read this announcement as if every existing H-1B, approved I-140, or green card connected to those companies suddenly disappeared.
At the same time, this is not as simple as saying, “Fine. I’ll just keep extending my H-1B.”
An H-1B is generally granted for an initial three years and can usually be extended for up to six years in total. Under certain conditions, extensions beyond the six-year limit may be possible. But that can depend on when the PERM or I-140 was filed, whether the I-140 has already been approved, and whether the person is waiting for an immigrant visa number.
So if Alex is only in his second year of H-1B status, he may still have time to make other plans. But what if he is already in year five and the company has not even been able to file his PERM? Then this may not be just a green card delay. He may also need to check how he can continue working and remaining in the United States after his current H-1B time runs out.
Of course, the calculation will be different for every person. The answer may change depending on whether time spent outside the United States can be recaptured, whether another green card category is available, or whether the person already has an approved petition. That part needs to be reviewed with the company’s U.S. immigration lawyer.
One more thing. As of October 13, the public announcement still does not answer every question about how long the suspension will last, exactly which corporate entities will be covered, or how previously approved cases will be handled. It is better to keep watching for the follow-up guidance than to pretend every detail has already been settled.
Then Why Not Just Move to Canada?
Looking at this news from the Canadian immigration side, another question comes up.
Are there skilled professionals currently working in the United States who could build a second option in Canada?
Yes.
But a PERM problem in the United States does not automatically open the Canadian door. Canada still has its own eligibility requirements, point calculations, work permit rules, and permanent residence programs.
One possible option is the Federal Skilled Worker Program under Express Entry.
Because this program can count qualifying skilled work experience gained outside Canada, professional experience in the United States may count as foreign work experience. A Canadian Job Offer is not necessarily required to meet the program’s basic eligibility requirements.
But work experience alone is not enough. Language test results, education, age, settlement funds, and other factors must also be reviewed. And after entering the Express Entry pool, the applicant still needs to receive an invitation before applying for permanent residence.
Being eligible and being invited are two different stages. If Alex works for a company like Microsoft that also operates in Canada, an intra-company transfer may be worth checking as well. If the relationship between the U.S. and Canadian entities meets the requirements, Alex qualifies as a specialized knowledge worker, and the company is prepared to support the transfer, an LMIA-exempt Canadian work permit may be possible.
For Korean citizens, the intra-company transfer provisions under the Canada–Korea Free Trade Agreement may also need to be reviewed, depending on the corporate structure and the employee’s role. But having the same company name on an office in Canada is not enough. The relationship between the corporate entities, the employee’s previous work experience, and the actual position in Canada all matter.
And if you are a Korean citizen, check your age. Those between 18 and 35 may be able to apply for Working Holiday through International Experience Canada. Korean citizens can currently participate twice for up to 24 months each time, and the Working Holiday category gives you an Open Work Permit that is not tied to one specific employer.
For someone who qualifies, this can be a very practical way to enter Canada and start building Canadian work experience. (Honestly, this may be the easiest option compared with some of the more complicated routes.) Of course, the applicant must still meet the IEC requirements, including the invitation process, available quota, insurance, and proof of funds.
So What Should Someone Working in the U.S. Check First?
First, find out exactly where your U.S. case stands.
Are you still preparing the PERM application? Has it already been filed? Was it approved? Is your I-140 approved? How much H-1B time do you have left?
Those questions need to be reviewed with the company’s U.S. immigration lawyer.
And no, preparing Canada as a possible next option does not mean you have to abandon your current U.S. visa or immigration process. On the Canadian side, we would look at your age, citizenship, language scores, education, actual job duties and NOC, total work experience, whether your company has a related Canadian entity, and whether an internal transfer is realistically available.
Once everything is laid out, we can see whether you should look at Express Entry and the Federal Skilled Worker Program, whether an intra-company transfer is possible, or whether Working Holiday could be the place to start. It is also possible that none of these options will work right now.
If you have no Canadian Job Offer, an internal transfer is not possible, you are over the Working Holiday age limit, and your Express Entry score is too low, there may be no immediate path to Canada. So please do not decide, “If the U.S. doesn’t work, I’ll just move to Canada,” before checking the actual requirements.
On the other hand, you may assume there is no option when there is, in fact, something you can start reviewing now.
If you currently work for Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL, or Capgemini and your PERM or I-140 is in progress—or if you are working in the United States on an H-1B and simply want to know whether Canada could become another option—it may be worth checking before you actually need Plan B.
Want to find out whether Canada can realistically work as an alternative for you?
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