Cognizant PERM Filings Suspended Amid US Visa Fraud Probe

The US Department of Labor has suspended Cognizant Technology Solutions’ ability to file new PERM applications, placing the India-founded IT services major at the centre of a widening US investigation into alleged abuse of employment-based immigration programmes.

Labor Department Inspector General Anthony D’Esposito announced the suspension on September 8, saying investigators were examining potential fraud involving the H-1B and PERM systems. The investigation is being conducted in coordination with the White House Fraud Task Force and other officials.

The action does not establish that Cognizant committed fraud. US authorities have not publicly disclosed the specific allegations against the company, the number of applications affected or how long the suspension will remain in place.

PERM Filings Put On Hold

PERM, or Program Electronic Review Management, is the US labour-certification process generally required before an employer can sponsor a foreign worker for an employment-based green card.

Employers must undertake recruitment and demonstrate that qualified and available US workers cannot fill the position and that employing a foreign worker will not adversely affect the wages or working conditions of similarly employed American workers.

The suspension means Cognizant cannot submit new PERM filings while the investigation continues. It does not amount to a suspension of the H-1B programme itself.

Labor Department Steps Up Probe

D’Esposito said the investigation is focused on possible fraud and abuse within the H-1B and PERM programmes.

In a post on X, he said Cognizant’s PERM filings had been suspended and warned that the Labor Department would not tolerate practices that threaten American workers. He also said investigators were working with the White House Fraud Task Force to examine the allegations.

The broader investigation was launched in July and has examined allegations involving employment-based immigration programmes. Officials have indicated that whistleblowers raised concerns involving major companies, including Cognizant.

Cognizant Among Major H-1B Users

Cognizant has historically been one of the major corporate users of the US H-1B programme, which allows American employers to hire foreign workers for specialised occupations.

However, the company's reliance on H-1B workers has declined in recent years. US Labor Department data cited by Business Standard show Cognizant filed 3,436 Labor Condition Applications in 2025, compared with 10,189 in 2018.

US Citizenship and Immigration Services data cited by India Today show that Cognizant had received approval for 3,510 H-1B petitions as of June 30, compared with 9,413 in 2020.

The figures underline the company's long-standing role in the US employment-visa system even as its dependence on the programme has changed.

Cloudera Also Faces Suspension

Cognizant is not the only technology company facing action.

The Labor Department also suspended PERM filings by Cloudera, a US-based data software company. Both companies were named by D’Esposito in announcements concerning the broader immigration-fraud investigation.

The simultaneous action has fuelled concerns that the investigation could extend beyond individual companies and lead to closer scrutiny of recruitment and sponsorship practices across the technology industry.

However, there is currently no official finding that Cognizant or other Indian IT companies have violated US immigration law.

Impact On Indian IT Sector

The Cognizant action is significant for Indian IT companies because many have historically used H-1B visas to deploy specialised professionals to the US.

Companies such as TCS, Infosys, Wipro, HCLTech and Cognizant have maintained substantial US operations and have relied on employment-based immigration channels as part of their global staffing models.

A broader enforcement drive could therefore increase compliance costs and scrutiny for technology companies that sponsor foreign workers.

For employees awaiting employment-based green cards, a prolonged suspension could also create uncertainty, particularly where future PERM filings are required to advance the permanent-residency process.

Existing Green Cards Unaffected

The suspension primarily concerns new PERM filings.

It does not automatically cancel previously approved PERM certifications or existing green cards, nor does it itself terminate H-1B status. The precise effect on individual cases will depend on where each employee is in the immigration process.

This distinction is important because PERM is only one stage in the broader employment-based green-card process.

What Happens Next

The immediate focus will be on the Labor Department's investigation and whether officials release details about the allegations against Cognizant.

The department has not publicly disclosed the evidence behind the suspension, while Cognizant had not immediately responded to requests for comment in reports published after the announcement.

For the Indian IT sector, the bigger question is whether the Cognizant action remains an isolated enforcement case or becomes part of a wider US review of H-1B and PERM practices.

Until investigators complete their work, allegations of fraud should not be treated as established findings against Cognizant. But the suspension clearly signals that US authorities are intensifying scrutiny of the employment-based immigration system and the companies that depend on it.