The U.S. Department of Labor has suspended Cognizant’s new permanent labor certification filings as federal authorities widen scrutiny of alleged fraud and abuse involving employment-based immigration programs. The action could disrupt new employer-sponsored green card cases for some foreign professionals, particularly technology workers who depend on PERM sponsorship to pursue permanent residency in the United States.
Labor Department Inspector General Anthony D’Esposito announced the Cognizant action on September 8, saying investigators were working with the White House Fraud Task Force and other federal officials. Cloudera has also faced PERM enforcement, although its case began months earlier under a separate Labor Department action.
Cognizant, ran by Ravi Kumar, has had all H-1B applications paused and will be investigated with potential criminal punishments for immigration fraud.
— AF Post (@AFpost) September 8, 2026
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Cognizant PERM filings face new federal scrutiny
D’Esposito said Cognizant’s PERM filings had been suspended as part of a broader effort to detect suspected fraud involving foreign-worker programs. The Trump administration launched a wider investigation in July covering employment-based immigration systems including H-1B and PERM.
Federal officials have not publicly disclosed the precise allegations behind the Cognizant suspension, the number of applications affected or how long the restriction will remain in place. The action is part of an investigation and should not be treated as a final finding that Cognizant committed fraud.
PERM is a key stage in employer-sponsored green cards
PERM, or Program Electronic Review Management, is the Labor Department process used by employers seeking permanent labor certification for certain foreign workers before moving ahead with employment-based green card sponsorship.
Employers generally must test the U.S. labor market and show that there are no qualified, willing and available American workers for the position under the required conditions. The rules are also intended to prevent foreign hiring from adversely affecting wages or working conditions for similarly employed U.S. workers.
A filing suspension can therefore matter most to employees whose employer has not yet completed this stage of the green card process.
Cloudera’s 180-day PERM suspension began in May
Cloudera’s case has a separate and more detailed timeline. On May 12, the U.S. Department of Labor announced a 180-day suspension of Cloudera’s PERM applications after allegations that the company violated provisions of the Immigration and Nationality Act.
The department said evidence obtained by the Justice Department alleged that Cloudera used a recruitment process that prevented qualified American workers from applying for certain high-paying technology jobs while certifying that qualified U.S. workers were unavailable.
The Labor Department said the 180-day suspension could be extended depending on the outcome of the Justice Department investigation. The allegations remain subject to the enforcement and legal process.
Cognizant remains a major H-1B employer
Cognizant was founded in Chennai in 1994 and is now headquartered in Teaneck, New Jersey. Its large U.S. technology workforce makes the latest action particularly relevant to Indian professionals working through employment-based immigration programs.
According to USCIS figures cited in reports on the suspension, Cognizant received approvals for 3,510 H-1B petitions as of June 30, 2026, compared with 9,413 in 2020.
The development comes amid wider uncertainty around U.S. skilled-worker immigration. One separate proposal would impose a $103,265 fee on certain cap-subject H-1B petitions, although that proposal is not currently in effect.
PERM suspension does not automatically cancel H-1B visas
PERM and H-1B are different immigration processes. PERM is generally connected to employment-based permanent residency, while H-1B is a temporary nonimmigrant work visa program.
The Cognizant action therefore does not automatically mean that employees’ H-1B visas, approved H-1B petitions or existing green cards have been cancelled. The immediate focus of the reported action is the company’s ability to submit new PERM filings while the federal investigation continues.
Foreign workers are also watching other possible policy changes, including a proposal affecting the H-1B 60-day grace period after job loss. That issue is separate from the Cognizant investigation but adds to uncertainty for skilled workers navigating the U.S. immigration system.
Impact will depend on the stage of each case
The practical effect may differ by employee. Someone whose employer has not yet filed a PERM application could face a different situation from a worker with a pending labor certification, an already approved PERM or a case that has moved to later immigration stages.
Federal officials have not publicly explained how every pending Cognizant case will be handled. The duration of the suspension and the number of workers directly affected also remain unclear.
Cognizant workers await clearer federal guidance
The most important next information for affected workers will be formal guidance explaining the scope of Cognizant’s suspension, how long it will remain in place and how existing PERM cases will be treated.
Until those details are released, claims that all Cognizant-sponsored green card cases or H-1B visas have been cancelled would go beyond what federal authorities have announced.
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