US Department of Labour Suspends Cognizant’s Green Card Filings Amid Visa Fraud Probe
Washington: In a significant development for the global tech sector, the US Department of Labour has formally suspended the ability of IT giant Cognizant to initiate new green card sponsorship filings. The move comes as part of an escalating investigation into alleged visa fraud, marking a major regulatory crackdown on one of the largest employers of H-1B visa holders in the United States.
The suspension was confirmed on Tuesday by Anthony D’Esposito, the Inspector General of the US Department of Labour, who underscored the administration’s hardline stance on immigration compliance. Alongside Cognizant, the technology firm Cloudera has also been subjected to a similar suspension of its PERM (Program Electronic Review Management) filings.
“Threats to American workers will not be tolerated,” D’Esposito stated in a public address via social media, signaling that the oversight body is intensifying its scrutiny of corporate immigration practices.
Understanding the Impact on PERM Filings
The suspension directly targets the PERM certification process, which serves as the foundational step for any foreign worker seeking an employment-based green card in the US. Under standard federal regulations, employers are required to secure labour certification by proving that the recruitment of a foreign worker does not displace a qualified American candidate.
This process involves strict adherence to a “prevailing wage” determination—a minimum salary threshold set by the Department of Labour—followed by a mandatory domestic advertising period. By halting Cognizant’s ability to file for these certifications, the government has effectively stalled the company’s internal pipeline for transitioning foreign staff toward permanent residency.
Cognizant’s H-1B Footprint Under Review
Founded in Chennai in 1994, Cognizant has evolved into a massive US-headquartered entity and remains a cornerstone of the American IT staffing ecosystem. According to the most recent data from US Citizenship and Immigration Services (USCIS) for the 2026 fiscal year, the company secured 3,510 approved H-1B visa petitions. This volume ranks Cognizant sixth in the nation, trailing major industry players like Amazon, TCS, Infosys, Apple, and Microsoft.
The regulatory action follows months of mounting pressure. Inspector General D’Esposito had previously dropped hints regarding impending investigations, responding to public allegations of visa abuse on social media with calls for patience and promises of forthcoming action.
“Project Firewall” and the Trump Administration’s Stance
This development is widely viewed as a direct outcome of the Trump administration’s “Project Firewall,” an aggressive enforcement initiative launched in September last year. Designed specifically to monitor and penalize employers accused of manipulating the H-1B programme, the initiative focuses on ensuring that high-skilled visa categories are not used to bypass domestic hiring in a way that undermines US wage standards.
Industry experts suggest that the suspension of PERM filings could have ripple effects across the tech sector, prompting a wider audit of how multinational firms manage their global workforces. As the investigation into Cognizant unfolds, the tech industry is bracing for stricter compliance demands and potentially broader reforms to the H-1B visa framework.
For thousands of employees currently in the sponsorship pipeline, the suspension creates significant uncertainty, highlighting the precarious nature of the current immigration policy environment for Indian-founded tech entities operating in the United States.
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