Cognizant Faces Suspension of New PERM Filings
The US Department of Labor has suspended Cognizant’s PERM filings, creating fresh uncertainty for foreign employees of the India-founded IT services company seeking employer-sponsored Green Cards.
The action comes amid a broader US investigation into alleged fraud and misuse of employment-based visa programmes, including H-1B and PERM. Software company Cloudera has also faced a suspension of its PERM filings.
The Labor Department has not disclosed the specific allegations against either company, the number of applications affected or how long the suspension will remain in place. No criminal charges against the companies have been announced.
What Is PERM and Why Does It Matter?
PERM, or Program Electronic Review Management, is a key stage in the US employment-based Green Card process.
Before sponsoring many foreign workers for permanent residency, an employer generally has to obtain labour certification from the Department of Labor. The process requires the employer to demonstrate that qualified and available US workers cannot fill the position and that hiring the foreign worker will not adversely affect wages or working conditions.
Therefore, stopping new PERM filings can directly affect employees who were waiting for their employer to begin their Green Card sponsorship process.
Indian IT Workers Could Face Delays
The development is particularly significant for Indian technology professionals because Indian workers account for a large share of employment-based immigration applicants and many Indian IT companies have historically relied heavily on US work-visa programmes.
Cognizant has also been a major H-1B sponsor. US immigration data cited in reports showed 3,510 H-1B petition approvals for Cognizant as of June 30, 2026, compared with 9,413 in 2020.
However, the PERM suspension does not automatically cancel existing Green Cards or terminate employees’ H-1B status. Its immediate effect is on new PERM filings, while the impact on individual cases depends on how far each application has progressed.
US Authorities Signal Tougher Enforcement
Labor Department Inspector General Anthony D’Esposito announced the suspension and said the department was working with the White House Fraud Task Force and other officials.
His statements indicate that the administration is examining potential fraud, financial activity and alleged threats to American workers. However, the authorities have not publicly established that Cognizant committed fraud or violated immigration law.
The wider investigation was launched in July and reflects the Trump administration’s increasing scrutiny of H-1B and employment-based immigration programmes.
Could Other IT Companies Face Scrutiny?
The Cognizant action has also raised questions about whether enforcement could expand to other major technology companies that rely on foreign-worker programmes.
Companies such as TCS, Infosys, Wipro and HCL have significant US operations and have historically used H-1B and other employment-based immigration pathways. However, there is currently no evidence in the cited reports that similar PERM suspensions have been imposed on those companies.
For Cognizant employees, the immediate issue is uncertainty: new Green Card sponsorships may be delayed until the Labor Department completes its investigation and determines what further action, if any, is warranted.
Summary: The US Department of Labor has suspended new PERM filings by Cognizant and Cloudera amid an investigation into alleged fraud involving employment-based visa programmes. The move could delay Green Card sponsorship for foreign workers, including Indian IT professionals, but does not by itself cancel existing Green Cards or H-1B status. The specific allegations and duration of the suspension remain unclear.
