US Suspends Cognizant’s Green Card Filings Amid Visa Fraud Probe; Indian IT Firms Face Closer Scrutiny

The US Department of Labor has suspended Cognizant’s permanent labour certification (PERM) filings as the Trump administration steps up its investigation into alleged fraud involving employment-based visa programmes.

The action makes Cognizant one of the latest companies to come under scrutiny in a nationwide probe launched in July. Cloudera has also faced a suspension of its PERM filings following an investigation involving the White House Fraud Task Force and other government officials.

US Department of Labor Inspector General Anthony D’Esposito announced the action on Tuesday, warning that the administration would take a tough stance against practices it believes could disadvantage American workers.

"Threats to American workers will NOT be tolerated." He added, "Fighting fraud is a TEAM SPORT. @Sonderling47 and I are for real. @Cognizant's PERM filings are suspended. @DOLOIG is on the hunt," referring to Keith Sonderling, Acting Secretary, Department of Labour. "Alongside @WHFraudTF, we're following facts, fraud and finances. Handcuffs await," he added.

Cognizant Barred From New PERM Applications

The suspension means Cognizant cannot submit fresh PERM applications until the Labor Department completes its investigation into alleged irregularities involving the company’s H-1B and PERM programmes.

PERM, or Program Electronic Review Management, is a key stage for US employers seeking to sponsor foreign employees for permanent residency. Employers generally have to demonstrate that qualified US workers are not available for the position and that employing a foreign worker would not adversely affect wages or working conditions.

The latest action could have wider implications for India’s technology sector. Cognizant is among the largest H-1B sponsors in the US, while companies such as TCS, Infosys, Wipro and HCL also depend significantly on employment visa programmes to deploy skilled professionals.

Cognizant’s H-1B Footprint Under Scrutiny

The investigation follows the Trump administration’s broader July probe into alleged fraud involving the H-1B and PERM programmes.

Cognizant was established in Chennai in 1994 and is now headquartered in Teaneck, New Jersey. Data from US Citizenship and Immigration Services showed that the company had received approval for 3,510 H-1B visa petitions as of June 30, compared with 9,413 approvals in 2020.

The company has also previously faced scrutiny over employment practices. A federal jury had found Cognizant liable for discrimination against non-Indian workers in a separate case.