US Suspends Cognizant PERM Filings Amid Visa Fraud Investigation
The US Department of Labor has suspended Cognizant’s ability to submit new PERM applications, escalating scrutiny of the Indian-origin IT services company’s use of employment-based immigration programmes. The suspension comes as US authorities investigate alleged fraud and abuse involving H-1B and PERM visa programmes.
PERM, or Program Electronic Review Management, is a key labour-certification process that US employers generally must complete before sponsoring eligible foreign workers for employment-based green cards. Employers are required to demonstrate that qualified US workers are not available for the position and that hiring foreign workers will not adversely affect American workers’ wages and conditions.
The Labor Department’s Office of Inspector General announced the suspension through Inspector General Anthony D’Esposito, who said the agency was working with the White House Fraud Task Force as part of its investigation. He warned that alleged practices threatening American workers would face enforcement action.
The investigation follows whistleblower complaints concerning alleged misuse of the H-1B and PERM systems. US officials have been examining allegations that some employers or intermediaries may have submitted fraudulent applications, exploited foreign workers through wage arrangements and used immigration programmes in ways that could disadvantage American workers.
Importantly, the suspension concerns new PERM filings. Reports indicate that it does not cancel Cognizant’s previously approved immigration cases or amount to a suspension of the company’s existing H-1B programme.
The development could nevertheless create uncertainty for Cognizant employees who are relying on employer sponsorship to begin or advance the green-card process. A delay in new PERM filings can postpone the first major stage of an employment-based permanent-residency application.
Cognizant is a major user of the US employment-visa system, although its H-1B-related filings have declined significantly over recent years. Labor Department data cited by Business Standard show the company filed 3,436 Labor Condition Applications in 2025, compared with 10,189 in 2018.
The action is also part of a broader US government crackdown. The Labor Department’s Inspector General launched a major investigation in July 2026 into alleged H-1B and PERM fraud, including fraudulent applications, wage kickbacks, exploitation of foreign workers and practices that could undercut American employees.
Cognizant is not the only technology company facing action. The Labor Department has also suspended PERM applications associated with Cloudera amid separate government scrutiny of its recruitment practices.
Authorities have not publicly established that Cognizant itself committed fraud, and the investigation remains ongoing. The suspension therefore represents an enforcement measure during the probe rather than a final finding of wrongdoing against the company.
The latest action is likely to be closely watched by Indian IT companies and thousands of Indian technology professionals in the US, as Washington continues tightening oversight of employment-based immigration and placing greater emphasis on protecting American workers.
