Cloudera's Two-Year PERM Ban and Instacart's $5M Settlement: What PERM Enforcement Means for Workers

Cloudera is barred from PERM for two years and Instacart agreed to a $5 million settlement. Here is what each deal does to pending green cards, H-1B extensions and new offers.

By F1Jobs Team · 2026-11-01 · 10 min read

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Part of our guide to PERM labor certification.

Status as of November 1, 2026. The Cloudera PERM debarment is in effect: in a 2026-10-16 settlement with the Justice and Labor Departments, Cloudera accepted a two-year bar from the PERM green-card program, a $600,000 civil penalty and a $1.4 million back-pay fund, and it denied the allegations. Instacart (legally Maplebear Inc.) settled for $5 million on 2026-10-20 with no suspension or debarment. Neither action is an H-1B ban, and neither announcement says any approved I-140 was revoked. The separate DOL suspension of eight employers announced 2026-10-08 is unchanged: no published written notice and no end date. DOL's PERM labor-market-test proposal (RIN 1205-AC29) cleared White House review but is unpublished; today's PERM rules apply.

What these deals mean for you depends on one thing: how far your own green-card case got before the bar began.

What the Cloudera PERM debarment means for employees

A PERM debarment stops an employer from filing new PERM labor certifications for the length of the bar; Cloudera's runs two years under its 2026-10-16 settlement. It is not an H-1B ban. An approved I-140 keeps its priority date and can still support AC21 three-year H-1B extensions. Workers with no PERM filed are the most exposed.

They are exposed because the six-year H-1B clock keeps running while the bar lasts, and the usual ways past that limit run through PERM or I-140 filings. This guide explains how the rules work, not what you should file; individual cases belong with a licensed immigration attorney.

Correction: Cloudera's 180-day suspension does not "end in November"

Some posts still say Cloudera's PERM suspension expires in November 2026. On 2026-05-12, DOL's Employment and Training Administration announced enforcement actions against Cloudera and said it had "suspended processing of all permanent labor certification applications" filed by or for the company for 180 days, with a possible extension pending the Justice Department's investigation. May 12 plus 180 days lands on about 2026-11-08 (our arithmetic), which is where the "ends in November" claim came from.

It did not run out: the Justice Department's 2026-10-16 release (No. 26-1166) states that "Cloudera will be barred from participating in the PERM program for two years" and that the debarment follows DOL's earlier suspension. A suspension pauses processing during an investigation; this is a fixed-term bar agreed in a settlement.

What did Cloudera and Instacart agree to? (the 2026 DOJ PERM discrimination settlements)

Both cases are about PERM recruitment violations as the government framed them: how each company treated US workers who applied to jobs advertised as part of PERM, the labor-market test an employer runs before sponsoring a green card under 20 CFR 656.17.

Cloudera (settled 2026-10-16)

Who acted: the Justice Department's Civil Rights Division together with DOL, which imposes the PERM debarment.
The allegation: that Cloudera, a Santa Clara, California data-management company, discriminated against US workers when recruiting and hiring for seven PERM positions. DOJ filed the case on 2026-04-28 with the Office of the Chief Administrative Hearing Officer, according to DOL's May release.
The terms: a two-year PERM debarment, a $600,000 civil penalty, a $1.4 million back-pay fund for qualified US workers who tried to apply for those seven jobs, plus enhanced monitoring, revised PERM compliance procedures and reporting requirements.
Cloudera's position: the DOJ release does not state it. Cloudera "denied the allegations and maintained that it had complied with the law," according to RN Law Group's summary of the settlement (2026-10-21).

Instacart, or Maplebear Inc. (settled 2026-10-20)

Who acted: the Civil Rights Division and the EEOC, in a joint EEOC release.
The allegation: that Instacart created extra burdens for US workers by "requiring that applications be physically mailed for positions advertised as part of PERM recruitment."
The terms: $5 million in total, made up of a fund of up to $4 million for applicants and deterred applicants from December 2023 to February 2026, and $1 million in civil penalties. Instacart must post PERM jobs on its public careers site, accept electronic applications, train staff, revise policies and accept monitoring and reporting.
What it is not: there is no PERM suspension and no debarment, and the joint release does not record Instacart's own position. A settlement resolves the claims without a trial; it is not a court finding.

If you are a US worker who applied to one of these jobs, the DOJ release lists IER's worker hotline (1-800-255-7688), and the EEOC release asks Instacart applicants to write to [email protected] until the claims administrator sets up its own contact.

Debarment vs suspension vs settlement: what each does to your case

The four enforcement tools in the news this autumn sound alike and work very differently.

PERM enforcement actions compared, as of 2026-11-01

Action	Who	Scope	Length	Filed or pending cases	New cases
PERM debarment	Cloudera (settlement, 2026-10-16)	PERM labor certification only	Two years; exact dates not published	DOJ release is silent on pending PERMs; no I-140 revocation announced	Employer barred from PERM during the bar
PERM suspension	Microsoft, Adobe, Cognizant, Infosys, TCS, Wipro, HCL, Capgemini (announced 2026-10-08)	PERM labor certification only	No end date published	Pending PERMs not processed; no published written notice or stated basis	Not accepted until DOL lifts it
Settlement fund and penalties, no bar	Instacart / Maplebear (2026-10-20)	Recruitment practices for PERM jobs	No bar; monitoring period not stated in the release	No suspension announced; the joint release is silent on pending cases	No bar; new recruitment terms apply
H-1B debarment	Six willful violators on DOL's Wage and Hour list (effective as of 2026-10-01); not Cloudera or Instacart	H-1B program	Fixed start and end dates per employer	A separate program from PERM	Debarred for its listed dates

Sources: the releases above, Mayer Brown's summary of the 2026-10-08 announcement, 20 CFR 656.31 and DOL's H-1B debarment list. For an offer from one of the eight suspended employers, use our decision table for offers from PERM-suspended employers.

The DOJ release does not name the provision behind the Cloudera bar. The PERM regulation's own debarment paragraph, 656.31(f), allows "a reasonable period of no more than three years," so two years sits inside that ceiling. When DOL debars under 656.31(f), its written notice states the start date and term and DOL notifies DHS and the State Department; the public release prints neither date, so ask counsel for them.

Does a PERM debarment affect H-1B?

Not by its terms. PERM is the first step of most employer-sponsored green cards. H-1B runs on a Labor Condition Application and a Form I-129 petition, and H-1B debarments come from a different DOL office with its own list. The Cloudera release does not mention H-1B, and Cloudera is not on that list; our guide to checking the H-1B debarred-employers list before accepting an offer shows how to read it.

The connection is indirect but real. H-1B status is generally capped at six years, and the main ways past that cap run through green-card filings under AC21: a one-year extension under section 106(a) when a PERM or I-140 was filed at least 365 days earlier, or three-year extensions under section 104(c) with an approved I-140 while the per-country limit keeps a green card from being available to you (see 8 CFR 214.2(h)(13)(iii)(D)-(E)). An employer that cannot file PERM cannot start that chain for you. Our guide to H-1B extensions with an approved I-140 during the PERM suspension goes deeper on the extension mechanics.

What happens to your green card if your employer is debarred from PERM?

It depends on how far your case got.

You already have an approved I-140

This is the strongest position. Under 8 CFR 204.5(e), an approved I-140 "accords the alien the priority date of the approved petition" for later employment-based petitions, unless USCIS revokes it for fraud or willful misrepresentation, DOL revokes or USCIS or the State Department invalidates the labor certification, or USCIS finds a material error. Neither the May DOL release nor the October DOJ release says any Cloudera labor certification or I-140 was revoked or invalidated. An approved I-140 also still supports section 104(c) three-year H-1B extensions for as long as the per-country limit keeps your visa unavailable, and under 8 CFR 214.2(h)(13)(iii)(E) the H-1B petitioner need not be the employer that filed the I-140.

Your PERM was filed but not yet certified, or certified with no I-140 yet

This is the unclear zone. The May suspension covered "all permanent labor certification applications" filed by or for Cloudera, and neither the October release nor 656.31 spells out what happens to applications that were pending when the bar began. Under the AC21 rules a pending PERM keeps counting toward a 106(a) extension until a final denial, revocation or administrative closure, so its outcome matters to your H-1B clock. A certified PERM also has a shelf life: under 20 CFR 656.30(b) it expires if it is not filed with an I-140 within 180 calendar days of certification. Ask the employer's counsel, in writing, what status DOL shows and whether an I-140 was filed on it.

No PERM has been filed for you

Your employer cannot start PERM for you until the debarment ends. Some workers in this position look at a move to an employer that can sponsor, or at self-petition categories such as EB-2 NIW or EB-1A that skip PERM entirely; whether either fits you is an attorney question, not a forum question.

A worked timeline: the six-year clock against a two-year bar

A hypothetical with real dates; your own dates need an attorney's calculation.

Date	What happens
2022-10-01	You start H-1B at Cloudera. Your six-year limit would run to about 2028-09-30.
2026-05-12	DOL suspends Cloudera's PERM processing for 180 days. No PERM has been filed for you.
2026-10-16	Settlement: two-year PERM debarment. The release prints no exact start or end date; measured from the settlement, the bar runs to about October 2028 (our arithmetic).
By about 2027-10-01	For a 106(a) extension starting 2028-10-01, a PERM or I-140 would need to have been filed at least 365 days before (our reading and arithmetic). That date falls inside the bar, so Cloudera cannot be the filer.
2028-09-30	The six-year limit is reached with no PERM on file from this employer.

One door stays open: under 8 CFR 214.2(h)(13)(iii)(D)(6), the H-1B petitioner need not be the employer that filed the PERM, so a PERM filed early enough by a different employer could count. Only the filing date matters for 106(a), but a new employer must first get a prevailing wage determination and run recruitment before it can file. As of 2026-09-30, DOL's FLAG processing-times page showed PERM wage determinations being worked at June 2026 requests; as of 2026-10-21, analyst review of filed PERMs was at January 2026 filings, averaging about 303 days.

Instacart: why a settlement without a suspension still matters

If you work at Instacart, the settlement does not pause PERM; it changes how the company must recruit for PERM jobs. The EEOC release says nothing about pending applications, so whether past recruitment must be redone is a question for Instacart's immigration counsel, not something to assume either way.

If you are job hunting, both cases show where enforcement is looking: whether US applicants to PERM jobs get a real chance. The recruitment rules have not changed. DOL's PERM labor-market-test proposal (RIN 1205-AC29) cleared White House review on 2026-10-23 but has not been published, and the current 20 CFR 656.17 still governs; our explainer on the 2026 PERM labor-market-test proposal tracks it. Whether an employer actually files PERM shows up in DOL's PERM disclosure files; the latest is FY2026 Q3, through 2026-06-30, so it predates both settlements. Our guide to checking whether a company sponsors green cards shows how to read them.

Can you keep your priority date if you move to a new employer?

Yes, generally, once an I-140 is approved. Its priority date carries to a new employer's later EB-1, EB-2 or EB-3 petition under 8 CFR 204.5(e), subject to the exceptions above. A PERM that is only pending or certified gives you nothing to carry, so a new employer would start PERM again.

A related rule is easy to confuse with it. Under 8 CFR 205.1(a)(3)(iii)(C), a petition withdrawn 180 days or more after approval "remains approved unless its approval is revoked on other grounds"; a withdrawal sooner revokes it automatically, unless an associated I-485 has been pending 180 days or more. Our guide to an I-140 withdrawn after 180 days covers what that keeps, and our guide to the green card while on H-1B walks through the full PERM, I-140 and I-485 sequence.

What to do this week if you work at, or are weighing, either employer

Find every Form I-797 I-140 approval notice from this or any earlier employer, and note each priority date.
Ask your employer's immigration counsel, in writing, whether a Form ETA-9089 PERM application was filed for you and what DOL now shows as its status.
Confirm your six-year H-1B limit date from your I-797s and latest I-94, and ask counsel to check it.
Check where your priority date stands on the USCIS adjustment filing charts page; for November 2026 USCIS requires the Dates for Filing chart, and consular cases always use Final Action Dates.
Review DOL's FLAG processing times before assuming a new employer could get a wage determination, recruit and file PERM quickly.
Book a consultation with a licensed immigration attorney of your own before you resign or sign, because the employer's counsel represents the employer. If you are still on F-1, OPT or STEM OPT, talk to your DSO about your F-1 status; PERM and petition strategy are attorney questions.

Common mistakes

Repeating "Cloudera's 180-day suspension ends in November." It ended in the 2026-10-16 settlement, which brought a two-year PERM debarment.
Reading a PERM bar as an H-1B ban. Neither Cloudera nor Instacart is on DOL's H-1B debarment list, and the eight-employer suspension "does not suspend any employer from the H-1B program," in Mayer Brown's words.
Treating a pending PERM as a portable priority date. Retention under 204.5(e) requires an approved I-140.
Taking forum answers as the rule. A widely shared Blind question about extensions with an approved I-140 drew both "Yes" and "No" replies; the regulation, read with your attorney, decides it.
Forgetting the grace-period clock if you leave. The discretionary 60-day grace period for H-1B and other workers still applies (the F-1 grace period is a separate rule). DHS has proposed eliminating the worker grace period (RIN 1615-AD22); comments close 2026-11-10, and it stays a proposal unless DHS publishes a final rule.

Frequently asked questions

What happens to my green card if my employer is debarred from PERM?

The employer cannot start a new PERM for you during the bar, which for Cloudera is two years. Nothing published says an approved I-140 is revoked, and an approved I-140 still supports three-year H-1B extensions under AC21 section 104(c). Neither the DOJ release nor the regulation says what happens to a PERM still pending, so ask an immigration attorney.

How long is Cloudera barred from PERM?

Two years, under the Justice Department's 2026-10-16 settlement, which also set a $600,000 civil penalty and a $1.4 million back-pay fund. The 180-day suspension DOL announced on 2026-05-12 ended in this settlement, so claims that it simply ends in November 2026 are out of date. Cloudera denied the allegations, according to a law-firm summary of the settlement.

Does a PERM debarment affect H-1B?

Not directly. A PERM debarment covers the permanent labor-certification program only. H-1B runs on a Labor Condition Application and Form I-129, and DOL's separate H-1B debarment list (effective as of October 1, 2026) names neither Cloudera nor Instacart. The indirect effect is on H-1B extensions past six years, which depend on PERM or I-140 filings.

What did Instacart agree to?

On 2026-10-20 Maplebear, which does business as Instacart, agreed to a $5 million settlement with the Justice Department and the EEOC over allegations that it required mailed paper applications for PERM jobs. Up to $4 million funds payments to applicants and $1 million is civil penalties, and Instacart must post PERM jobs online and accept electronic applications. It is not a PERM suspension or debarment.

Can I keep my priority date if I move to a new employer?

Generally yes, once an I-140 is approved. Under 8 CFR 204.5(e) its priority date carries to later EB-1, EB-2 or EB-3 petitions unless approval is revoked for fraud or willful misrepresentation, a DOL revocation or invalidation of the labor certification, or material error. A PERM that is only pending or certified, with no approved I-140, gives you no priority date to carry.

Sources

How we checked this: on 2026-11-01 and 2026-11-02 we read the DOJ, DOL and EEOC releases, a law-firm summary of the Cloudera settlement, the regulation text at 20 CFR 656.30 and 656.31, 8 CFR 204.5, 8 CFR 205.1 and 8 CFR 214.2, DOL's H-1B debarment list, PERM disclosure page and FLAG page, and the USCIS filing-charts page.

This is general information, not legal or tax advice; your own notices, your I-94 and your attorney (or your DSO for F-1 matters) govern over anything published here.

Enforcement news moves fast, but your next job decision should rest on your own dates, not headlines. If you want help finding employers that sponsor H-1B and green cards at a pace that fits your clock, F1Jobs works with international candidates on exactly that search.