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What is the story about?
The US Labor Department has suspended Cognizant Technology Solutions Corp.’s ability to file new applications for permanent labour certification, adding to scrutiny of the Indian IT services company’s use of US employment-visa programmes.
The suspension will prevent Cognizant from making fresh PERM filings until the department completes an investigation into alleged fraud involving the company’s H-1B and PERM programmes, the department said.
The probe follows complaints from whistleblowers alleging wrongdoing in Cognizant’s use of the immigration programmes. Cognizant did not immediately respond to a request for comment.
The department’s inspector general, Anthony D’Esposito, said on X that the agency was working with the White House Fraud Task Force to examine the allegations.
What is PERM and why does it matter?
PERM, short for Program Electronic Review Management, is the US process through which employers seek certification that allows them to hire foreign workers for permanent jobs in the country.
Before seeking employment-based permanent residency for a foreign worker in most cases, an employer must first obtain certification from the Labor Department. The process requires the employer to demonstrate that there are no qualified US workers available for the position and that hiring a foreign worker will not adversely affect the wages or working conditions of US workers.
Once the labour certification is approved, the employer can proceed with the next stages of the employment-based green-card process.
The latest suspension applies to new PERM filings. It does not invalidate Cognizant’s existing approvals or suspend its H-1B visa programme, according to the Labor Department.
Cognizant’s H-1B use has fallen
The action comes as the Trump administration steps up scrutiny of employment-based immigration programmes and alleged abuses by companies that rely on foreign workers.
Cognizant’s use of the H-1B programme has declined significantly in recent years. Labor Department data show the company filed 3,436 Labor Condition Applications in 2025, down from 10,189 in 2018.
An LCA is generally required before an employer can hire an H-1B worker and sets out the terms and wages associated with the employment.
The US government has also recently highlighted other cases involving alleged misuse of the H-1B programme.
US Citizenship and Immigration Services said last week that it had identified H-1B petitions from a major IT consulting company in which technology jobs were classified at wage levels that did not match the duties and requirements of the positions. The agency said it had denied and revoked multiple petitions, arguing that such practices could undermine wage protections and create unfair competition for US workers.
The agency did not identify the company in that statement.
For Cognizant, the immediate impact of the Labor Department’s decision is on new permanent labour-certification filings. The broader outcome will depend on the findings of the investigation into the allegations.
The suspension will prevent Cognizant from making fresh PERM filings until the department completes an investigation into alleged fraud involving the company’s H-1B and PERM programmes, the department said.
The probe follows complaints from whistleblowers alleging wrongdoing in Cognizant’s use of the immigration programmes. Cognizant did not immediately respond to a request for comment.
The department’s inspector general, Anthony D’Esposito, said on X that the agency was working with the White House Fraud Task Force to examine the allegations.
What is PERM and why does it matter?
PERM, short for Program Electronic Review Management, is the US process through which employers seek certification that allows them to hire foreign workers for permanent jobs in the country.
Before seeking employment-based permanent residency for a foreign worker in most cases, an employer must first obtain certification from the Labor Department. The process requires the employer to demonstrate that there are no qualified US workers available for the position and that hiring a foreign worker will not adversely affect the wages or working conditions of US workers.
Once the labour certification is approved, the employer can proceed with the next stages of the employment-based green-card process.
The latest suspension applies to new PERM filings. It does not invalidate Cognizant’s existing approvals or suspend its H-1B visa programme, according to the Labor Department.
Cognizant’s H-1B use has fallen
The action comes as the Trump administration steps up scrutiny of employment-based immigration programmes and alleged abuses by companies that rely on foreign workers.
Cognizant’s use of the H-1B programme has declined significantly in recent years. Labor Department data show the company filed 3,436 Labor Condition Applications in 2025, down from 10,189 in 2018.
An LCA is generally required before an employer can hire an H-1B worker and sets out the terms and wages associated with the employment.
The US government has also recently highlighted other cases involving alleged misuse of the H-1B programme.
US Citizenship and Immigration Services said last week that it had identified H-1B petitions from a major IT consulting company in which technology jobs were classified at wage levels that did not match the duties and requirements of the positions. The agency said it had denied and revoked multiple petitions, arguing that such practices could undermine wage protections and create unfair competition for US workers.
The agency did not identify the company in that statement.
For Cognizant, the immediate impact of the Labor Department’s decision is on new permanent labour-certification filings. The broader outcome will depend on the findings of the investigation into the allegations.
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