9 September 2026 Punjab Khabarnama Bureau : The US Department of Labor (DOL) has suspended Cognizant’s ability to file new PERM applications, a key step in the employment-based green card process, amid a federal investigation into alleged fraud and abuse involving the H-1B and PERM visa programmes.
The development puts additional scrutiny on the India-founded IT services company as the Trump administration intensifies its crackdown on alleged misuse of employment-based immigration programmes.
What Is PERM and Why Does It Matter?
PERM, or Program Electronic Review Management, is the labour certification process that US employers generally must complete before sponsoring eligible foreign workers for permanent employment and, ultimately, a green card.
The employer must demonstrate that there are no qualified and available US workers for the position under the applicable requirements before seeking labour certification.
The suspension means Cognizant cannot submit new PERM filings while the investigation continues.
Cognizant Under Investigation
The suspension follows a broader investigation launched by the Labor Department’s Office of Inspector General into alleged fraud and abuse involving the H-1B and PERM systems.
Officials have said whistleblower complaints raised concerns about practices involving major companies, including Cognizant. The investigation is examining allegations including fraudulent visa applications, wage-related violations, exploitation of foreign workers and practices that could undermine American workers.
However, the suspension itself does not establish that Cognizant committed fraud or violated US immigration law. Authorities have not publicly disclosed the specific allegations against the company or announced a finding of wrongdoing.
Cognizant and Indian IT Workers
Cognizant was founded in Chennai in 1994 and is now headquartered in the United States. It is among the major corporate users of the H-1B visa programme, which is widely used by technology companies to employ highly skilled foreign professionals.
The PERM suspension could therefore affect foreign employees whose long-term US residency plans depend on their employer initiating or advancing the employment-based green card process.
Does This Mean H-1B Visas Are Suspended?
Not exactly.
The latest action specifically concerns new PERM filings, rather than a blanket suspension of the H-1B programme.
Some reports have also cited a Labor Department official saying H-1B processing involving Cognizant was suspended, but the clearest formal action publicly reported so far is the suspension of the company’s PERM filings.
Cloudera Also Faces PERM Suspension
Cognizant is not the only technology company affected.
Labor Department Inspector General Anthony D’Esposito said that Cloudera’s PERM filings had also been suspended as part of the broader immigration-fraud scrutiny.
D’Esposito said the department was working with the White House Fraud Task Force and warned that alleged threats to American workers would not be tolerated.
What It Means for Existing Green Card Cases
The suspension primarily affects new PERM filings.
It does not, by itself, mean that previously approved green cards or existing immigration statuses have automatically been cancelled. The consequences for individual employees will depend on where their cases are in the immigration process and on any further action taken by US authorities.
Why the Move Matters for Indian Tech Professionals
Indian technology professionals make up a significant share of the highly skilled foreign-worker population using the US employment-based immigration system.
For employees waiting for employer-sponsored permanent residency, a pause in PERM filings can create uncertainty and potentially delay the start or progression of their green card process.
The development also adds to concerns among Indian IT workers about the impact of the Trump administration’s broader immigration crackdown.
US Immigration Crackdown Intensifies
The Cognizant action comes amid a wider effort by the Trump administration to increase scrutiny of employment-based immigration programmes.
US officials have increasingly focused on allegations that some employers may misuse visa programmes, underpay foreign workers or use immigration pathways in ways that disadvantage American workers.
Investigation Continues
For Cognizant employees and other foreign workers, the immediate impact is uncertainty over future employer-sponsored green card filings.
The Labor Department’s investigation will determine whether further action is warranted. Until authorities release additional findings, the allegations against Cognizant remain unproven.