What Is a PERM Suspension?
The Program Electronic Review Management, or PERM, is the process where a US employer must prove to the Department of Labor (DOL) that there are no available, qualified American workers for a specific job before they can sponsor a foreign worker for permanent
residency (a Green Card). A suspension means the DOL has barred a company, in this case Cognizant, from submitting any new PERM applications. This action effectively halts the first major step of the Green Card process for any employee who has not yet had a PERM application filed on their behalf. The suspension does not automatically cancel existing H-1B visas or previously approved PERM applications, but it creates a significant roadblock for those in the queue.
Why Was Cognizant Penalized?
The suspension was announced on September 8, 2026, by the US Labor Department's Inspector General, Anthony D'Esposito, as part of a broader investigation into alleged fraud and misuse of employment-based immigration programs. While the specific allegations against Cognizant have not been publicly detailed by the DOL, the Inspector General stated the move was to counter "threats to American workers." The investigation, conducted with the White House Fraud Task Force, is examining potential misuse of both the H-1B and PERM programs, following whistleblower complaints. The broader probe is looking into issues like fraudulent visa applications and recruitment practices that could disadvantage US workers.
Who Is Immediately Affected?
The primary group affected are Cognizant employees, many of them Indian nationals on H-1B visas, who were waiting for the company to begin their Green Card process. Without the ability to file a new PERM application, their path to permanent residency is delayed indefinitely until the suspension is lifted. This is particularly damaging for those from India, who already face years-long backlogs for employment-based Green Cards. For some workers approaching their six-year H-1B visa limit, the inability to file a PERM in time could jeopardize their ability to extend their stay in the US. Employees with already approved PERM certifications or those who have already received their Green Cards are not believed to be affected by this suspension of new filings.
How Long Will the Suspension Last?
As of now, the duration of Cognizant's PERM suspension has not been specified by US authorities. The announcement from the Inspector General did not state how long the bar on new filings will remain in force. For context, a similar suspension against another tech company, Cloudera, was announced earlier in 2026 for a period of 180 days, with the possibility of an extension. Until the Department of Labor provides a formal notice with a specific timeline for Cognizant, the future remains uncertain for many employees. The key things to watch are an official enforcement notice from the DOL and any further details on the scope of the investigation.
A Sign of Broader Scrutiny
This action against Cognizant, a massive IT employer with a significant Indian workforce, is seen as part of a wider crackdown on immigration compliance by the current US administration. Experts suggest that the IT industry as a whole could face tougher scrutiny regarding visa sponsorship, recruitment practices, and wage compliance. The very public nature of the announcement on social media, with the Inspector General warning that "handcuffs await," signals a more aggressive enforcement posture. This has put other major IT service providers on alert, as the investigation into alleged fraud in employment visa programs continues.
