Cognizant’s new PERM filings have been suspended by the US Department of Labor amid an investigation into alleged abuse and fraud involving employment-based immigration programmes. The development could affect the company’s ability to start new employer-sponsored green-card cases for foreign workers and has raised questions about whether US scrutiny could widen across the IT industry.
Why Has Cognizant’s PERM Filing Been Suspended?
US Department of Labor Inspector General Anthony D’Esposito announced that Cognizant’s PERM filings have been suspended. PERM, or Program Electronic Review Management, is a labour-certification process that employers generally need to complete before sponsoring eligible foreign workers for employment-based permanent residency.
The action follows a broader Labor Department investigation into alleged fraud and abuse involving the H-1B and PERM programmes. The investigation includes allegations involving fraudulent visa applications, wage-related abuses and practices that could negatively affect American workers.
D’Esposito said, “Fighting fraud is a TEAM SPORT. @Sonderling47 and I are for real. @Cognizant’s PERM filings are suspended. @DOLOIG is on the hunt.” He also said the investigation was following “facts, fraud and finances” in coordination with the White House Fraud Task Force.
Does This Mean Cognizant Employees Have Lost Their Green Cards?
No, the reported action applies to new PERM filings. It does not mean that existing green cards or previously approved immigration cases have automatically been cancelled. Employees who are already further along in the permanent-residency process may therefore be in a different position from those waiting for a new PERM filing. The Labor Department has also not publicly detailed the specific allegations against Cognizant, the number of employees affected or how long the suspension will continue.
Is Cognizant’s H-1B Programme Suspended Too?
This distinction is important. The confirmed action is the suspension of new PERM filings. A PERM suspension is not the same as cancelling or suspending the entire H-1B programme. The latest action does not amount to an H-1B programme suspension. The wider investigation, however, involves alleged abuse of both H-1B and PERM programmes.
Is This a Wider IT Industry Crackdown?
There are signs of broader enforcement, but it is too early to call this a confirmed industry-wide crackdown. Cognizant is not the only technology company facing PERM-related action. Cloudera’s PERM filings have also been suspended, according to the Labor Department inspector general.
The US Labor Department’s wider investigation into employment-based immigration is therefore significant for technology companies that rely on foreign-worker programmes. However, there is no confirmed announcement that TCS, Infosys or all major Indian IT companies have had their PERM filings suspended. The scope of any further action remains unclear.
What Does This Mean for Indian IT Workers?
The immediate concern is for foreign employees whose employers have not yet filed their PERM applications. A suspension could delay the start or progress of some employment-based green-card cases, depending on the employee’s stage in the immigration process. Cognizant is a major user of the H-1B programme. India Today, citing USCIS data, reported that the company had 3,510 approved H-1B petitions as of June 30, 2026.
What Happens Next?
The key things to watch now are how long Cognizant’s PERM suspension remains in place, whether the US Labor Department releases specific findings about the company, and whether similar action is taken against other technology firms. Investors and employees will also be watching for any expansion of US enforcement involving the H-1B and PERM programmes, as well as the potential impact on foreign workers waiting to begin employer-sponsored green-card cases.
In short, the confirmed development is that Cognizant’s new PERM filings have been suspended in the US amid a broader investigation into alleged employment-visa fraud and abuse. It does not mean that Cognizant employees’ existing green cards have been cancelled, nor does it prove that Cognizant has committed immigration fraud.
With Cloudera also facing PERM-related action, US scrutiny is clearly extending beyond one company. But whether this develops into a wider crackdown across the Indian IT industry remains an open question.
