Cognizant hit with PERM suspension as US investigates H-1B, Green Card fraud

Cognizant is facing a suspension of its PERM filings as the U.S. Department of Labor investigates potential fraud involving employment-based immigration programs, including the H-1B and green card systems.

The development was disclosed by Labor Department Inspector General Anthony D’Esposito, who said federal authorities had suspended Cognizant’s PERM filings while examining possible violations of immigration-related rules.

D’Esposito announced the action in a post on X, saying the Labor Department’s Office of Inspector General was working to identify potential fraud and protect American workers.

He said the investigation is being carried out in coordination with the White House Fraud Task Force and other federal officials.

The inspector general indicated that investigators are examining facts, financial activity and possible fraudulent practices connected to the employment-based immigration system.

The Labor Department has not released detailed information about the specific allegations against Cognizant or provided a timeline for the suspension.

PERM, or Program Electronic Review Management, is a Labor Department certification process generally required when employers seek permanent residency for foreign workers through employment-based green card sponsorship.

Under the PERM process, employers typically must demonstrate that qualified U.S. workers are not available for the position and that hiring a foreign worker will not adversely affect the wages and working conditions of similarly employed American workers.

Companies are also generally required to conduct recruitment efforts and advertise positions before submitting PERM applications to the Labor Department.

Once a PERM application is certified, an employer can proceed with the next stages of the employment-based green card process.

For Cognizant, the suspension could prevent the company from submitting or advancing certain new PERM applications while the investigation remains active.

However, the suspension does not automatically mean that previously approved PERM applications have been canceled or that employees currently holding H-1B status have lost their legal immigration status.

The development could nevertheless have a substantial impact on foreign technology professionals who depend on employer-sponsored immigration pathways to obtain permanent residency in the United States.

Cognizant has historically been a significant user of the H-1B program and employs a large number of technology professionals born outside the United States.

The company is also part of a broader group of India-linked technology services firms that have relied heavily on U.S. employment-based immigration programs.

Other major companies in the sector include Tata Consultancy Services, Infosys, Wipro and HCLTech, potentially putting industrywide immigration practices under greater scrutiny.

The Cognizant investigation could raise questions about whether federal authorities will expand their examination to other companies with substantial H-1B and PERM activity.

The action comes as the Trump administration has increased its focus on alleged fraud and misuse within employment-based immigration programs.

Federal scrutiny of Cognizant could therefore provide an indication of how aggressively regulators intend to pursue employers suspected of violating foreign-worker sponsorship requirements.

For Indian technology workers pursuing employment-based green cards, any prolonged suspension could create uncertainty around future sponsorship and immigration timelines.

At this stage, the Labor Department has not indicated whether the investigation will result in penalties, additional restrictions or broader enforcement measures.

The full scope of the inquiry and its potential consequences for Cognizant’s existing and future immigration cases remain uncertain as federal officials continue their investigation.