The US Department of Labor has launched a broad investigation into alleged fraud and abuse involving the H-1B and PERM employment visa programmes. Whistleblower complaints reviewed during the probe have reportedly mentioned IT services firm Cognizant, although no formal charges or enforcement action have been announced against the company.
Speaking in an interview, US Department of Labor Inspector General Anthony D’Esposito said complaints received by his office referred to companies “like Cognizant” in connection with the employment visa programmes. He said the Office of Inspector General (OIG) has already issued dozens of subpoenas and is actively investigating allegations of abuse within the employment-based visa system.
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The investigation comes at a time when Cognizant’s reliance on the H-1B programme has declined significantly in recent years. According to US Department of Labor data, the company filed 10,189 Labour Condition Applications (LCAs) in 2018, compared with 3,436 LCAs in 2025. An LCA is a mandatory filing that employers must submit before sponsoring a foreign professional for an H-1B visa, certifying compliance with wage and labour regulations.
According to the report, Cognizant was contacted for comment, but the company had not issued an official response by the time the report was published.
The investigation forms part of a broader crackdown by the Donald Trump administration on alleged employment visa fraud. The effort is being coordinated under a task force led by US Vice President JD Vance, which has been established to identify and eliminate fraud within the employment-based immigration system.
The Office of Inspector General said preliminary findings point to alleged schemes involving fraudulent visa applications submitted by some employers and labour brokers, wage kickback arrangements imposed on foreign workers, and the hiring of overseas employees at below-market wages in ways that allegedly disadvantaged American workers.
According to the agency, the suspected misconduct extends beyond documentation violations and includes allegations of labour trafficking, forced labour, and exploitation of foreign workers. Officials emphasised that the H-1B and PERM programmes are intended to address genuine labour shortages rather than facilitate fraudulent recruitment or worker exploitation.
The investigation remains ongoing, with federal authorities continuing to examine documents, financial records, and whistleblower complaints. So far, officials have not announced any final findings, prosecutions, or formal action against any company or individual in connection with the probe.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
