US Labour Department Suspends Cognizant’s Green Card Sponsorship Filings Amid Fraud Probe

The United States Department of Labour has taken a significant regulatory stance against Cognizant, the Chennai-founded, US-listed technology giant, by suspending its ability to file new PERM (Program Electronic Review Management) applications. The move, announced by Inspector General Anthony D’Esposito, marks a major escalation in the federal government’s crackdown on alleged visa fraud within the tech sector.

Along with Cognizant, the technology firm Cloudera has also been subjected to the same suspension. This action halts the initial phase of the employment-based green card process for these companies, potentially disrupting long-term residency plans for thousands of foreign professionals currently working in the United States.

The Impact on Indian Professionals

The suspension carries significant implications for the Indian IT workforce. Cognizant remains one of the largest sponsors of H-1B visas in the United States, ranking sixth overall—trailing only major global players like Amazon, TCS, Infosys, Apple, and Microsoft. According to data from the US Citizenship and Immigration Services for fiscal year 2026, the company secured 3,510 approved H-1B petitions.

Given that Indian nationals represent approximately 71% of all approved H-1B beneficiaries, any restriction on the sponsorship ecosystem is felt acutely by the Indian diaspora. While the suspension currently applies only to PERM filings—the precursor to a permanent green card—and does not directly invalidate existing H-1B visas, the broader investigation into the company’s labor practices has created an atmosphere of uncertainty for employees relying on the firm for legal immigration pathways.

Escalation of Federal Investigations

The crackdown follows months of scrutiny initiated by the Office of the Inspector General. Inspector General Anthony D’Esposito has been vocal about the department’s commitment to protecting the domestic labor market. Earlier this year, D’Esposito signaled that the department was actively probing allegations of systemic abuse within visa programs, specifically identifying Cognizant as a focus of the investigation.

In public statements, including on social media platforms and during media appearances, D’Esposito emphasized that the department is working in coordination with the administration’s fraud task force to pursue leads provided by whistleblowers. “Threats to American workers will NOT be tolerated,” D’Esposito stated, noting that the probe is designed to uncover potential misuse of employment-based immigration systems.

Understanding the PERM Process

The PERM process is a critical regulatory hurdle for any company seeking to hire foreign talent on a permanent basis. Under this framework, employers are legally required to prove to the Department of Labour that they have conducted a thorough search for qualified US workers for a specific position. The company must demonstrate that hiring a foreign national will not negatively impact the wages or working conditions of the local American workforce.

Part of this process involves the establishment of a “prevailing wage,” a federally mandated minimum salary for the role. Once the company advertises the position domestically and completes a mandatory waiting period, it can proceed with the sponsorship application. By suspending these filings, the US government has effectively blocked Cognizant’s ability to initiate the pathway to permanent residency for its staff until the ongoing investigation is resolved.

As the federal government continues to expand its fraud task force, industry experts are watching closely to see if other major players in the tech services sector will face similar regulatory action.

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