The US Department of Labor has suspended Cognizant’s permanent labour certification, or PERM, filings following a fraud investigation, preventing the IT services company from submitting new applications while authorities examine alleged fraud involving its H-1B and PERM programmes.
The action comes as the Trump administration intensifies scrutiny of employment visa programmes. Cognizant is one of the biggest H-1B sponsors in the United States, and the suspension could bring greater scrutiny to other major Indian IT companies that rely heavily on similar visa programmes.
PERM Filings Suspended During Fraud Investigation
US Department of Labor Inspector General Anthony D’Esposito said Cognizant and Cloudera’s permanent labour certification filings had been suspended following an investigation conducted in coordination with the White House Fraud Task Force and other officials.
D’Esposito said threats to American workers would not be tolerated and referred to the government’s wider effort to pursue fraud. He also said authorities were following “facts, fraud and finances” and added that “Handcuffs await.”
The suspension prevents Cognizant from filing new PERM applications until the department completes its investigation into alleged fraud involving the company’s H-1B and PERM programmes.
PERM, or Program Electronic Review Management, is the process through which US employers seek Department of Labor approval to sponsor foreign workers for permanent residency. Employers generally have to demonstrate that no qualified and available US workers exist for the job and that hiring a foreign worker will not adversely affect the wages or working conditions of American workers.
Proposal for Conducting Cyber Crisis Drill, Tabletop Exercise (TTEx) & CCMP Readiness Exercise
Wider Scrutiny of Employment Visa Programmes
The Trump administration launched a major investigation in July into alleged fraud involving the H-1B and PERM employment visa programmes.
Cognizant, founded in Chennai in 1994 and now headquartered in Teaneck, New Jersey, had received approvals for 3,510 H-1B visa petitions as of June 30, according to data shared by US Citizenship and Immigration Services. The corresponding figure was 9,413 in 2020.
The company has also faced a separate case in which a federal jury found that it discriminated against non-Indian workers.
The action against Cognizant could lead to increased scrutiny of other major Indian IT companies, including TCS, Infosys, Wipro and HCL, which also rely heavily on employment visa programmes.
Suspension Marks Fresh Step in US Visa Fraud Crackdown
The decision to halt Cognizant’s PERM filings represents another step in the US administration’s campaign against alleged fraud in employment-based visa programmes.
The investigation is focused on alleged fraud involving H-1B and PERM programmes, while the suspension specifically stops Cognizant from making new permanent labour certification filings until the Department of Labor completes its probe.
The action places renewed attention on employer compliance with the rules governing the recruitment and sponsorship of foreign workers for permanent residency in the United States.
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