The US Department of Labour has suspended Cognizant’s filings for employment-based green cards under the Permanent Labour Certification (PERM) programme. This blocks the company from submitting new PERM applications while it’s under a federal investigation into its visa programme.
Labour Department Inspector General Anthony D’Esposito announced the suspension in a post on X, saying the investigation was focused on “facts, fraud and finances” and warning that “handcuffs await.”
The department has not disclosed the specific allegations against Cognizant, the number of employees or applications affected, or how long the suspension will remain in place.
The suspension applies to new PERM filings and does not, by itself, cancel existing green-card cases or terminate employees' H-1B status. H-1B and PERM are separate immigration processes, although the investigation could lead to further action against Cognizant.
PERM is a key employer-sponsored step towards many employment-based green cards. Before filing, an employer must establish that no sufficient, willing, and qualified US workers are available for the position and that hiring the foreign worker will not adversely affect the wages and working conditions of similarly employed US workers.
PERM is only the first stage of the employment-based green card process. After certification, an employer files an I-140 petition with the US Citizenship and Immigration Services (USCIS), after which the worker may face a visa-number wait before filing for adjustment of status and ultimately receiving permanent residence.
Cognizant’s PERM suspension follows an earlier escalation in the Labour Department’s investigation.
In July, D’Esposito said investigators had issued dozens of subpoenas and that whistleblowers had raised concerns involving major companies including Cognizant over H-1B and PERM practices. D’Esposito did not accuse Cognizant of wrongdoing or announce charges at the time.
The July investigation was focused broadly on alleged abuses of the employment-visa system, including fraudulent applications, wage kickbacks, worker exploitation, and practices that could undercut US workers.
The department is pursuing the investigation alongside the White House Fraud Task Force.
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