In disappointing news for employees of the India-founded tech giant Cognizant who were planning to settle in the United States, the US Department of Labour has suspended the company’s permanent labour certification filings. The action comes as the Trump administration has intensified scrutiny of visa applications amid allegations of visa fraud and purported threats to the employment prospects of US employees.
Announcing the decision on Tuesday (8th September), the US Labour Department Inspector General, Anthony D’Esposito, wrote on X, “Fighting fraud is a TEAM SPORT. @Sonderling47 and I are for real. @Cognizant’s PERM filings are suspended. @DOLOIG is on the hunt. Threats to American workers will NOT be tolerated. Alongside @WHFraudTF, we’re following facts, fraud and finances. Handcuffs await. However, D’Esposito did not disclose the reasons for taking action against the company.
Fighting fraud is a TEAM SPORT.@Sonderling47 and I are for real.@Cognizant’s PERM filings are suspended. @DOLOIG is on the hunt.
— Inspector General Anthony D'Esposito (@USLaborIG) September 8, 2026
Threats to American workers will NOT be tolerated.
Alongside @WHFraudTF, we’re following facts, fraud and finances.
Handcuffs await.
PERM filings refer to the labour certification process that US employers must complete before sponsoring a foreign worker for an employment-based green card. The process includes several steps, including the US Department of Labour setting a prevailing wage, which is the minimum amount the job must pay, followed by the sponsoring firm first opening the jobs for US applicants for a mandatory waiting period, and then the firm sponsoring foreign employees if the job openings are not filled with American workers. A PERM certification is the initial step in securing an employment-based green card for a foreign employee.
Notably, a PERM certification is distinct from the H-1B visa programme. PERM is the first step towards securing permanent residence in the US through employment, while the H-1B visa programme only allows temporary employment for foreign workers. Under the H-1B visa programme, eligible US employers can hire foreign professionals temporarily for speciality occupations. Thus, the suspension of Cognizant’s PERM filings does not automatically affect its H-1B petitions.
Cognizant is said to be one of the largest petitioners for H-1B visas in the corporate sector in the US. According to the US Citizenship and Immigration Services, it has received 3,510 approved H-1B visa petitions for fiscal year 2026. The company stood in sixth place in the US in H-1B visa approvals, behind Amazon, TCS, Infosys, Apple, and Microsoft.
