The U.S. Department of Labour has suspended permanent labour certification filings by technology services giant Cognizant as federal authorities investigate alleged fraud and possible harm to American workers. The action affects Cognizant’s ability to sponsor new green card applications but does not automatically terminate existing H-1B status or previously filed cases. If you represent Cognizant employees or are advising workers on employer-sponsored immigration options, this development changes your near-term filing strategy.
What changed
Labour Department Inspector General Anthony D’Esposito announced that “Cognizant’s PERM filings are suspended.” The US Department of Labor has suspended Cognizant’s PERM filings amid a nationwide investigation into alleged fraud involving employment visa programmes. Cloudera has also faced a suspension of its PERM filings following an investigation involving the White House Fraud Task Force and other government officials.
The inspector general’s post did not disclose the specific allegations against Cognizant, the number of applications affected or how long the suspension would remain in force. The investigation stems from a nationwide fraud probe the Department of Labor’s Office of Inspector General launched on July 8, 2026, in coordination with the White House Fraud Task Force, the Department of Homeland Security, and the Department of Justice.
Why it matters
The suspension prevents Cognizant from submitting new PERM applications while the investigation continues, which means employees who were expecting Cognizant to start their PERM process could face delays. Indian workers dependent on Cognizant’s new PERM filings may face delays and uncertainty until the suspension is removed. However, workers with existing labour certifications are not immediately affected.
The distinction is critical: The suspension specifically targets new PERM green card filings and does not directly suspend existing H-1B work authorization, though the underlying investigation covers both the H-1B and PERM programs. The suspension does not, by itself, mean that existing green cards have been cancelled or that Cognizant employees’ H-1B status has been terminated. The status of individual cases would depend on the stage they have reached and any further action taken by US authorities.
The PERM programme is popular among other Indian IT service companies, including Tata Consultancy Services (TCS), Infosys, Wipro and HCLTech, which sponsor employment-based green cards for Indian national employees. The DOL inspector also hinted at a crackdown on other companies, raising fresh concerns for the Indian IT sector.
Way forward
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For Cognizant employees in early-stage sponsorship: Contact Cognizant’s immigration department immediately to confirm the status of any pending or planned PERM applications. Do not assume your case is unaffected; the Department of Labor has not yet clarified how currently pending applications will be handled.
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For practitioners advising Cognizant-sponsored workers: Revisit your client’s green card timeline and explore alternative sponsorship options or employers if your client’s green card process has not yet begun. This suspension could extend the overall timeline materially.
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Monitor for broader enforcement: The action comes amid a broader Trump administration crackdown on alleged misuse of employment-based immigration programs. Federal investigators have been examining potential abuses of the H-1B and PERM systems, including fraudulent applications, improper recruitment practices, wage kickbacks and arrangements that authorities say could disadvantage American workers. Other major sponsors may face similar scrutiny.
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Verify status of pending cases: Because the Department of Labor has not released detailed guidance on how currently pending cases will be handled, affected employees should treat any public statements from Cognizant or immigration counsel as the most reliable source of case-specific information.
Disclaimer
Fola Editorial is a software and reference service, not a law firm, and does not provide legal advice. Nothing in this article should be construed as legal guidance. You must consult a licensed immigration attorney to evaluate your specific situation and verify the current status of this policy. Immigration policy can change without notice; always confirm against the primary source linked above and the Department of Labor’s official guidance.