First, What Is PERM?
PERM, or Program Electronic Review Management, is the mandatory first step for most employment-based green card applications in the United States. It's a process run by the Department of Labor (DOL) where an employer must prove that there are no qualified,
willing, and available American workers for a specific job. To do this, the company must conduct a series of recruitment activities to test the job market. Only after the DOL certifies a PERM application, confirming no US workers were displaced, can the company file an I-140 immigrant petition on behalf of the employee. This filing date also sets the employee's "priority date," which is their place in the long queue for a green card, a crucial factor for Indian professionals who already face severe backlogs.
What Exactly Happened at Cognizant?
On September 8, 2026, the DOL's Inspector General, Anthony D'Esposito, announced that Cognizant's ability to file new PERM applications has been suspended. This action is part of an ongoing investigation into alleged fraud and misuse of employment-based immigration programs, including both the H-1B visa and PERM processes. The probe is a collaborative effort involving the White House Fraud Task Force. Officials have not yet disclosed the specific allegations against Cognizant, the number of employees affected, or how long the suspension will last. This lack of detail has created significant anxiety for employees who were expecting to begin their green card process. Software company Cloudera was also named as having its PERM filings suspended.
Who Is Most Immediately Affected?
The suspension directly impacts employees who are waiting for Cognizant to file a new PERM application on their behalf. Their path to securing a priority date and moving forward with permanent residency is now on hold indefinitely. This is especially critical for those on H-1B visas who are approaching their maximum stay limit, as an approved I-140 petition (which follows PERM) is often required for extensions. However, the suspension does not, on its own, cancel an employee's current H-1B status or invalidate PERM applications that have already been certified and filed. Likewise, employees who already have approved green cards or are at a later stage of the process are not believed to be directly affected by this halt on new filings.
Why Is This Happening Now?
This action is part of a broader crackdown by the US government on perceived fraud and abuse within employment-based immigration systems. The investigation, which began in July 2026, is looking into issues like false visa applications, unfair wage practices, and recruitment processes that may disadvantage American workers. The suspension announcement came just a day after Cognizant publicised plans to hire 1,500 US college graduates, highlighting the complex position the company now finds itself in. While the specific trigger for the Cognizant investigation stemmed from whistleblower complaints, the move is seen by industry analysts as a signal to the entire IT services sector to ensure strict compliance.
What Happens Next for Employees?
For now, employees and the company are in a holding pattern. Cognizant cannot submit any new PERM applications until the suspension is lifted by the DOL. The duration is unknown and will likely depend on the findings of the federal investigation. A prolonged suspension could pose a talent retention risk for Cognizant, as employees whose green card processes are stalled may consider moving to other companies. Affected employees should closely monitor official announcements from the DOL and Cognizant for clarity on the scope and timeline of the suspension. The key developments to watch for are any formal enforcement notices that detail the specific findings and the duration of the punitive measures.
